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Photo Credit: http://www.nbcnews.com
ABC News looks at the impact international sanctions are having on Russians.
Its reporter, Susanna Kim, talked to several financial analysts to discuss the patterns of the economic development following several rounds of restrictions imposed by the US, Canada, the EU, Japan and Australia.
1. A contracting Russian economy
GDP could actually go down 0.8 percent in 2015 while the country continues to rely heavily on commodities whose falling prices push pressure on the rouble. The national currency has shed some 40 percent of its value over the past year.
2. A hit on Europe
Europe is suffering, too, unlike the US, which doesn’t have significant trade with Russia.
3. Boosting China
The sanctions are a "big plus" for China, which will be an energy market of greater interest to Russia, Kim quotes an expert as saying
4. Russian political power
Sanctions are used as a propaganda tool to justify antagonistic behavior, so the Kremlin is unlikely to change its course.
Earlier, Russia-IC reported that Bulgaria is complaining the EU sanctions on Russia are having a toll on its economy. Its Prime Minister told a press conference in Brussels that ‘Bulgaria is affected severely’ by the restrictions.
Russia accounted for 2.7 percent of Bulgaria's exports in 2013, which mostly included machinery, pharmaceuticals and agricultural produce.
“Bulgaria's exports to Russia were down 22 percent in August from a year earlier, while overall EU exports to Russia were down 18 percent, according to the EU statistics office Eurostat,” says a report by the Voice of America.
“Due to the embargo, we cannot export meat ... Bulgaria is facing not only political and economic and financial problems, we are facing global problems and that is why we need serious support,” Borisov was quoted by VoA as saying.
The number of Russian tourists is likely to fall in future because of the weakness of the rouble. Also, Russia said it would scrap its South Stream gas project that was supposed to run via Bulgaria.
Sources: http://abcnews.go.com
Author: Mikhail Vesely
