By George Vichas
[/P]13th day of war with the world anxiously watching the images from Ukraine and the implications of the Russian invasion.
Country after country approves sanctions on Russia, as the Kremlin attempts to reverse the isolation.
Yesterday Russia approved a "blacklist" of countries unfriendly to it, which includes states that have taken "hostile actions" against Russian companies and Russian citizens, including Cyprus.
As noted, according to this decree, Russian citizens and companies, the state itself, its regions and municipalities that have foreign currency obligations to foreign creditors from the list of unfriendly countries will be able to pay them in rubles. The new temporary procedure applies to payments exceeding 10 million roubles per month (or a similar amount in foreign currency).
Speaking to the Cyprus
Times[/B], DISY MP and economist Marios Mavridis said that this move is aimed at supporting the ruble, in a first response from the Kremlin.
"This decision is solely to support the ruble. It is a step and a warning as it prepares to impose more sanctions on countries unfriendly to it."
[/P]As Mr. Mavridis, the restrictions that the Kremlin has already imposed within the Russian territory are also moving in this direction, as it is already forcing those who export from the country to convert their revenues, whether they are euros or dollars, into rubles for at least 80% of the amount, in order to increase demand.
Regarding the general impact of the war and the sanctions on the economy both locally and internationally, Mavridis said that there will definitely be an impact on Cyprus from the sanctions adopted by the European Union as well as from the sanctions that Russia will impose on all other countries.
The DISY MP stressed that any sanctions will not be lifted, they will remain and will hurt Russia and Europe very much. "In every interruption of trade activity between two countries, both are affected, when they cooperate they both win and on the contrary when they stop cooperating they both lose."
He estimated that Russia will be the one that will be hurt the most because it is isolated on too many levels from too many countries. "It is not only from Europe or only from the US, it is a general condemnation of this invasion and the measures imposed are unprecedented and to a very large extent."
At the same time, Mavridis estimated that Russia will not back down for prestige purposes, but will suffer the costs in the medium and long term, while other countries will probably try to disengage from it. "It will start a Cold War climate for the next few years. The war will be won but it will be difficult to continue, other countries will be forced to turn to the West for security purposes and Russia will be isolated economically."
In conclusion, he stressed that the consequences will be negative for the whole world, but much more so for Russia.
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