Looking at the current war scenario between Russia and Ukraine major economies have dropped their support for Russia. The war scenario has led the economies to take out their helping hands from all kinds of economic deals and supports they are asking for and giving to the country.
Moreover, the charge of Ukraine has placed Russia on the brink of bankruptcy. Interest rates have doubled, the stock market has shut, and the currency rouble has dropped to its lowest level ever.
The military costs of war have been heightened by an exceptional level of international sanctions, sustained by a large coalition of countries. Russian citizens, now incapable to spend at IKEA, McDonald’s, or Starbucks, are not permitted to convert any of the money they do have into foreign currency.
Generous estimations suggest the Russian economy could shrink by 7 percent next year, rather than the 2 percent growth that was forecast before the invasion. Others say the decline could be as much as 15 percent.
Economies are dropping their interest in working with Russia because of a few reasons:
- As a symbol of support for Ukraine
- To financially weaken Russia to continue the war
- To not join hands to fulfill any business deals that can help the country to raise funds.
- To make the country realize to back out from the war state now.
To keep an eye on every deal people are relying on the sites which can help them to verify the links of the company to any Russian company. For serving this purpose sites like RuAssets help them to screen the links well.
The long-term perspectives are threatening. If boycotts are maintained, Russia will be cut off from its main trading companions apart from countries like China and Belarus. Rating agencies now indicate Russia will soon be incapable to pay back its creditors, again with colossal long-term effects on the economy. Its prestige as a disreputable borrower will make it hard to lure foreign investments without massive guarantees, potentially making it completely dependent on China.
It is not about any fear or else rather economies are resisting providing any support on the grounds of the behavior of the country’s president and the soldiers employed in Ukraine.
As a symbol of support to Ukraine, the world economies are boycotting Russia to a great extent. Whether it is in a way of providing services, products, financial help, or breaking the major deals and removing Russia from major Union meets.
Countries like the US, UK, and India tried over to settle the war condition between Russia and Ukraine but the Russian president didn’t show any support to the countries. Neither he has shown any sort of concern or mercy on the condition of the Ukrainian citizens. This was the main reason behind taking a step back from major economic deals by the different economies to boycott Russia and its products and services.
Boycotting by breaking business deals can be done by major firms by properly analyzing the contact of the business firms well.