Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli media: US Middle East Envoy Steve Witkoff has arrived in "Israel"
Joint statement: The United States will cut down tariffs on Chinese goods from 145% to 30%, while China will cut down tariffs on American goods from 125% to 10% for the same period
US-China trade talks joint statement: Agreement to temporarily reduce tariffs for 90 days
Al-Qassam Brigades spokesperson Abu Obaida: Al-Qassam has decided to release the Zionist soldier holding American citizenship, Edan Alexander, today
Israeli media: The army was informed of a ceasefire in Gaza to release captive Idan Alexander, starting 12 pm
Qatari Foreign Ministry: Qatar and Egypt welcome Hamas' announcement of its agreement to release American Aidan Alexander.
Hamas says to release US captive Edan Alexander.
Al Mayadeen's sources: Trump will announce that Hamas will release US captive Edan Alexander from Gaza.
Al Mayadeen correspondent: Israeli aircraft bombed the coastal province of Hodeidah on the Red Sea, west of Yemen.
The Israeli occupation military issues a bombing threat against the Yemeni ports of Ras Isa, Hodeidah, and Salif.

US, EU sanctions on Russia impact gas, oil, currency & more

  • By Al Mayadeen Net
  • Source: Agencies + Al Mayadeen Net
  • 2 Mar 2022 14:21
  • 1 Shares
5 Min Read

What has the Russian economy been experiencing since the implementation of the sanctions?

  • x
  • Moscow by night.
    Moscow by night

Sanctions that were implemented by the EU, US, Canada, Australia and other western allies on Russia come with the aim to suppress the Russian economy - how has that been going so far? We look at the impacts from a number of economic and industrial angles, including steel, oil, gas, currency exchange and more. 

Severstal

Severstal, one of Russia's largest steel-producing companies, announced in a statement that the company can no longer supply products to the European Union after sanctions were imposed on its owner, Alexey Mordashov. 

The European Union implemented sanctions recently on 380 Russian lawmakers, 27 individuals and legal entities after the announcement of the Russian military operation in Ukraine. 

"We decided to officially confirm that supplies to the EU were suspended due to sanctions imposed on the shareholder. The flow of goods will be redirected to alternative global markets," the statement said.

A source close to the company told TASS news agency that shipments to both companies and traders have been suspended: Under the law, Severstal's EU contractors do not have the right to acquire the company's products, according to the source. The products are likely to be reallocated to Middle Eastern, Asian and South African markets. 

Since the start of the military operation in Ukraine, the EU has enforced a number of sanctions on Russia, blacklisting politicians, businessmen, TV anchors and military personnel. Not only were Russia's assets in Europe frozen, but their entry and transit are now also off-limits for the government. 

Gas prices

Gas prices have been at a hike since the start of the crisis. According to the ICE exchange, based in London, the price of April futures for gas in Europe will surpass 60%, a historic maximum that costs $2,226 per one thousand cubic meters on Wednesday.

At 08:58 GMT, the price of futures on the TTF index has reached a peak, $2,226, which is 59.4% higher than the settlement price the previous day, which was set at $1,396.5 per thousand cubic meters.

Related News

Putin: Western countries can now pay fuel debts in foreign currencies

Countries not paying for gas in rubles have been cut off: Kremlin

Gazprom 

According to spokesman Sergey Kupriyanov, Gazprom continues to provide Russian gas for transit to Europe through Ukraine as usual. 

"Gazprom supplies Russian gas for transit to Europe through Ukrainian territory as per normal, in accordance with requests of European consumers - 109.4 mln cubic meters as of March 2," he said.

The allocated volume of the gas is slightly higher than deliveries under long-term booking for gas transit, according to TASS. This news comes although Europe, particularly Germany, is vowed to rely less on Russian gas.

Currency exchange rates: all-time high broken 

At the start of the conflict, the Russian ruble dipped 9% against the dollar, to which the Russian central bank responded directly with drastic measures to stabilize the currency. 

The Russian ruble hit a new low on Monday as Western countries decided to prevent some Russian banks from using a major global payment system. The US Treasury Department also imposed new penalties against Russia's central bank on Monday.

The ruble was trading at 97 to the dollar on Tuesday, up more than 10% from the previous day's low of 108.02 per dollar. After closing early on Monday, Russian markets remained closed on Tuesday.

Today, Wednesday, the ruble is plunging to a new low, exchanging a dollar at 110 rubles and a euro at 122 rubles, according to Moscow Stock Exchange. 

Crude oil 

The Russian operation in Ukraine triggered soaring oil prices and investors to shift money into ultra-safe US government bonds. The oil prices surged above $110 a barrel after Russia faced economic damage and isolation. 

On Wednesday, it was noted that the price for May 2022 futures contracts for Brent crude oil increased 5.83% on the ICE Exchange, increasing to $111.09 a barrel.

The last time Brent crude prices exceeded $111 per barrel was in July 2014. 

Sberbank

According to a Wednesday statement released by Russia's top lender, Sberbank has taken the decision to leave the European market. 

"In the current situation Sberbank decided to leave the European market. The group’s affiliates are facing an abnormal outflow of funds and the security threat for staff and offices," the bank said.

Sberbank, according to the statement, will not provide liquidity to European affiliates from the decision onwards.

"Meanwhile Sberbank’s affiliates have a high level of capital and quality of assets, clients’ deposits are ensured in conformity with local law. The bank’s assets are sufficient for making payments to all depositors," the bank said.

  • Russian ruble
  • Severstal
  • Russia
  • Sanctions on Russia
  • Gazprom
  • Ukraine
  • Sberbank
  • Brent crude oil
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Most Read

Trump cut off contact with Netanyahu, senior Israeli official says

Trump cut off contact with Netanyahu: Israeli media

  • US & Canada
  • 9 May 2025
Pakistan downs an Indian jet and hits a military base in Kashmir escalation.

Pakistan downs 3 Indian jets, hits military base in Kashmir escalation

  • Politics
  • 7 May 2025
A Yemeni gunman walks past paintings depicting rockets and scenes in solidarity with Gaza, displayed on a roadside fence in Sanaa, Yemen, Monday, May 5, 2025 (AP)

Oman brokers US-Yemen ceasefire, Israelis in dark regarding deal

  • Politics
  • 6 May 2025
Saree

Yemeni Armed Forces target key Israeli sites, USS Truman

  • MENA
  • 7 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
This Sept. 29, 2018 file photo shows idle cargo and oil tanker ships at the port of Hodeida, Yemen. (AP)
Politics

'Israel' issues threats to three Yemeni ports

Ukrainian President Volodymyr Zelensky speaks during a briefing in Kiev, Ukraine, Tuesday, March 25, 2025. (AP Photo/Efrem Lukatsky)
Politics

Zelensky agrees to meet Putin in Istanbul, demands ceasefire first

A boy holds an empty pot over his head as he waits for donated food at a community kitchen in Khan Younis, in the southern Gaza Strip, Friday, May 9, 2025 (AP)
Politics

US-Gaza ceasefire negotiations intensify amid Trump-Netanyahu split

AP
Politics

Hamas to free Edan Alexander as part of Gaza deal: Al-Hayya

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS