🌎 Said El Mansour Cherkaoui 🌍
Updated on 9/10/2022 – Initially published on June 26 6:46 pm
The State of the World and the Global Economy
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Europe Hindered by Russia Hydrocarbons
The Boomerang Effect of the European Commission Sanctions against Russia
The inflation of Energy produced following the sanctions on Russia are hurting the EU’s 27 states economies who are seeking to control the related damages and impacts on the consumer and market conditions.
The European Union’s executive body has proposed capping the price of Russian gas, which Putin has condemned a stupidity idea.
“We must cut Russia’s revenues which Putin uses to finance this atrocious war,” said European Commission chief Ursula von der Leyen.
In response, Mr Putin said Russia will halt supplies completely. “We will not supply gas, oil, coal, heating oil – we will not supply anything, that will be against Russia’s interests” responded Putin.
European leaders have accused Moscow of “weaponizing” its gas exports in response to Western sanctions on Russian individuals and businesses.
European Commission 7/10/2022 Russia is deliberately weaponizing the gas trade. They aim to spread uncertainty and destabilize the European market. 12 EU countries are already directly affected by a partial or total cut-off of Russian gas. Filling our gas storage capacities before this winter can help us prepare for possible further gas supply disruptions and…Continue Reading →
While the Kremlin denies that is the case, the big Nord Stream 1 pipeline into northern Germany has been shut indefinitely, with Moscow directly blaming sanctions.
Last week, the G7 group of nations – announced a price cap for Russian oil – a move it said would reduce both Moscow’s revenue for its Ukraine invasion, and inflation in the West.
Finnish researchers recently estimated that Russia has made â‚Euro158bn (£136bn) from surging fossil fuel prices during the six-month invasion – with EU imports accounting for more than half of that. G7 agrees to impose price cap on Russian oil
Speaking to an economics forum in the far eastern city of Vladivostok on Wednesday September 7, 2022, Russia’s leader condemned sanctions as economic aggression, and a “fever” posing a threat to the entire world.
The quality of life for Europeans was being sacrificed while poorer countries were losing access to food, he argued: “Now we are seeing how production and jobs in Europe are closing one after another.”
Although he acknowledged inflation in Russia was rising, he minimized the effect that sanctions were having on Russian companies: “I am sure that we have not lost anything and we will not lose anything.”
Russian companies have struggled to source much-needed imported parts. But Mr Putin asserted that confidence in the dollar, euro and pound was being lost before people’s eyes – while Russia was emerging from the war with its sovereignty strengthened.
September 7, 2022 · European Commission was live.
Russia is an unreliable supplier and is manipulating our energy markets. · But Europeans have the economic strength, the political will and unity to keep the upper hand. · We will put forward a set of 5 immediate measures that will protect vulnerable consumers and businesses and help them adapt.
1⃣ We need a strategy to flatten the peaks, which drive the price of electricity. We will propose a mandatory target for reducing electricity use at peak hours.
2⃣ Low carbon energy sources are making unexpected revenues. Time for consumers to benefit from their low costs. We will propose to re-channel these unexpected profits to support vulnerable people and companies.
3⃣ Oil and gas companies have also made massive profits. We will therefore propose a solidarity contribution for fossil fuel companies.
4⃣ They must be supported to cope with the volatility of the markets. We will update our temporary framework to enable state guarantees to be delivered rapidly.
5⃣ We must cut Russia’s revenues which Putin uses to finance this atrocious war against Ukraine. We are prepared for this. At the beginning of the war, Russia’s pipeline gas was 40% of all imported gas. Today it is now only 9% of our gas imports.
Response of Russia with Little Help of my Friend China
Russia’s energy giant Gazprom says it has signed an agreement with China to start payments for gas supplies to China in yuan and roubles
While, the European Union’s executive body is thinking about capping the price of Russian gas, China is having good negotiations with Russia on the pricing and use of their respective national money as the method of payment for the Russian oil, given them the chance to be considered as an International Currency acceptable for all the transactions of the international trade and financial operations.
China’s No. 3 Li Zhanshu met with Putin at the Eastern Economic Forum in Vladivostok. Putin promises a strategic pivot towards the Far East. China and Russia announced that the oil trade would settle in the RMB and Ruble, boosting Russian oil export and RMB’s internationalization. Russia’S LNG pipeline to China through Mongolia, Power Siberia 2, is expected to begin construction in 2024 and operation by 2030. While Europe suffers a severe gas shortage, China, Russia, and Mongolia are racing to strengthen energy-backed regional trade. 9/10/2022
World Economy Tandem: Inflation and Recession
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🆕 📈 Inflation in the OECD rises further in May 2022, reaching 9⃣.6⃣%, , largely driven by food and energy prices. 💰🥫⚡️This represents the sharpest price increase since August 1988.
🔎 Consumer Prices, OECD – Updated: 5 July 2022 – OECD
- 🆕 📈 Inflation in the OECD rises further in May 2022, reaching 9⃣.6⃣%, , largely driven by food and energy prices. 💰🥫⚡️This represents the sharpest price increase since August 1988.
- 🌍💥❤️🔥 European Commission
- 📈 #Inflation💲
- Exit Strategies ➡️ Biden for President
- 💵Federal Reserve Board – Interest Rate and Dollar
- 💶European Central Bank – Euro down in Front of the Dollar
- 📈 Moscow Exchange and Ruble Up against Dollar and Euro
- 😷 COVID-19 Community Resources
- 💹Japan Bank for International Cooperation
- 🌍African Development Bank Group
- 🌍West African Development Bank
- 🌍 African Union
- 🌍 #Africa🌍#Afrique
- 🌎 🌍 💥 🤔 #propaganda
- 📲 #cyberattacks #hackerspace
This is January 18, 2022 3:55 PM and Russia is already defining a gas strategy of diversified distribution and client base.
As winter bites, Europe is facing a gas shortage. A cold snap has coincided with lower volumes of gas exports from Russia, forcing a big spike in prices. Consumers and businesses across the continent are facing a steep increase in their bills, with governments scrambling to cushion the impact. And analysts warn it could soon get worse.
Moscow plans to build a new pipeline to China, which could give Russia the power to sell gas to the highest bidder, pitting Chinese and European consumers against one another.
From the frozen expanses of Siberia, Russia already is sending some natural gas to China. The “Power of Siberia 1” pipeline opened in 2019, tapping the gas fields in Russia’s far east to help fuel the Chinese economy.
Europe remains Russia’s largest customer by far, importing about 200 billion cubic meters of gas every year – about 30% of the continent’s supply. By comparison, China purchases about 38 billion cubic meters annually.
The Tide is Turning to the Side of the Economic Recovery for Russia despite the existence of inflationnary trends which is now global and even accepted as a new variable trend while the attention and the focus of the economists is more focus on the level of harshness of the Recession, Unemployment and Lack of Productivity as well as what is the evolution of the Chinese Economy given that China stood firmly on the side of Russia.
🌎 Global Economy 🌍 What does this all mean to you?
Global economies are strained at the moment, increasingly volatile with each new sanction.
The US dollar has been the world’s reserve currency since 1944. But THAT has never been in question…as much as it is today in 2022.
The Russian ruble continues its ascent📈 against the US dollar💲. North American inflation continues to soar as global wealth seeks more stable places to shelter against threats of military escalations.
Prices will continue to inflate for consumers as the war on Ukraine drags on.
As the war against Ukraine moves ever closer to Russia’s favor, it becomes clear that America will continue to pump resources into this conflict.
The US dollar as the world’s reserve currency is at risk. And for America, NATO’s largest member, that won’t hold. 🤔
Trouble for the Dollar and Rise of the Rouble
Russian President Vladimir Putin earlier this year forced European customers to open rouble bank accounts with Gazprombank and pay in Russian currency if they wanted to continue receiving Russian gas. Supplies were cut off to some companies and countries that refused the terms of the deal, causing energy prices to soar.
The main reason for the ruble’s recovery is soaring commodity prices. After Russia invaded Ukraine on February 24, already high oil and natural gas prices rose even further. Jun 28, 2022
This is a definitive turning point in NATO’s global history.
🌎 As the Group of 7 Nations meets in the Bavarian Alps on Sunday and Monday [June 25, 26, 2022], Russian missiles struck the Ukrainian capital, Kyiv, for the first time in weeks, “an apparent display of challenge”,
🌍.Russia has launched new attacks💥 by sending bombs straight into the hearts❤️🔥 Ukrainian, Kyiv💥 The new attack on Sunday comes on the same day that the leaders of the Group of Seven of the world’s richest democracies meet in Germany.
The key eastern city of Sievierodonetsk is now “completely under Russian occupation”, according to a Ukrainian city official.
The mayor of the beleaguered city of Mykolaiv in southern Ukraine has urged residents to leave.
The 27 member countries of the European Union agreed – on June 19, 2022 – that Ukraine should obtain the status of a candidate member of the European Union, the first major step towards formal membership of the European Union.
The United States plans to send an additional $450 million in military aid to Ukraine, including additional rocket launchers, Reuters reports.
On 25/06/2022, Chancellor Olaf Scholz hosted Heads of State and Government of Member States for the annual #G7 Summit.
➡️ The Group of Seven represents an intergovernmental political forum between seven leading industrial nations and democracies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Representatives of the European Union join the many meetings.
While informal and without a secretariat, the G7 is considered to have significant influence. The group focuses on major global issues with the aim of fostering multilateral cooperation.
World leaders are discussing new sanctions against Russia, which now include gold exports – a token commodity perhaps? 💵💶
On the table that will be discussed at the summit will be how to further isolate Moscow. President Biden announced a ban on Russian gold imports by the group, “the latest effort by Ukraine’s Western allies to choke off the flow of money to… Putin’s government.”
Tougher sanctions on Russian oil could also be discussed
Germany will not only continue the work of the group from past years, but will also set its own priorities. To initiate new models of cooperation in the face of global challenges, she formulated 5 key areas in which she wants to work for a more equitable world.
🌍 A sustainable planet: With the establishment of a global alliance for climate protection, Germany aims to foster multilateral climate cooperation.
The protection of the #environment and biodiversity and an acceleration
of the global energy transition are also considered.
📈 Economic stability and transformation: Faced with the consequences of the pandemic, another emphasis is placed on economic recovery and financial #stability making the economy global
more sustainable, social and just system.
😷 Healthy living: To fight the current pandemic and avoid future ones, Germany wants to improve preparedness and response mechanisms and improve the international #health architecture.
💹 Investing in a better future: With the 2030 Agenda in mind, Germany plans to promote sustainable development and infrastructure as well as partnerships on climate, energy and development. The G7 must remain a champion of peace and security.
📲 Stronger together: To strengthen the core values of G7 member states, Germany stresses the importance of open and resilient societies, human rights, liberal democracies, political freedom and social participation. Fighting misinformation and promoting #digital order and progress are the main challenges here.