President Putin admitted that the economic sanctions Western officials have imposed on Russia are taking a toll on Russian businesses. This has been most notable in the Russian stock market as money continues to be pulled from the system.
President Putin has also made the point that any economic sanctions imposed on Russia would have a boomerang effect, which will do more harm than good to those imposing the sanctions. This is a point that I have alluded to in multiple articles recently and wholeheartedly agree with.
The reality is that Europe is heavily dependent on Russia for its energy needs. Specifically, Europe is dependent on Russia’s natural gas. Therefore, Russia and China’s announcement last week on a massive $400 billion natural gas deal came as shock to many, essentially redirecting roughly 20 percent of Europe’s natural gas supply to China. Continue reading