important statement
U.S. Department of the Treasury Office of Foreign Assets Control It was published a new general license that sets the rules for the import of a number of Russian goods into the country and the conditions for the export of American goods to Russia. The Americans eased sanctions, which, according to US President Joe Biden, were supposed to “destroy” the Russian economy.
Restrictions on vital agricultural products have been lifted. The anti-sanction list of Russian goods includes: organic and inorganic fertilizers, seeds and breeding material. The list of goods withdrawn from sanctions includes foodstuffs, vitamins and minerals, food additives and vitamins, bottled water, livestock and feed for them, medical equipment and components. The United States allowed the export, import, and re-export of goods in these categories. The possibility of updating the software of medical equipment for Russian hospitals and polyclinics was also confirmed. US authorities have also authorized activities related to “the prevention, diagnosis or treatment of COVID-19”, including research and clinical trials. Any other research of a medical nature is also approved if started before March 24, 2022.
Washington Double Game
The pressure of sanctions imposed by the USA on Russia due to the special military operation against Ukraine is gradually being released. Petroleum products, one of the key components of Moscow’s export revenues, remain banned. Economist Tatyana Kulikova told socialbites.ca that the United States does not want to completely close the “doors of trade” in relations with Russia, because the sanctions have seriously damaged the American economy.
“For the Americans, a special military operation in Ukraine is something far away. There is much less willingness in the United States to suffer economically because of Ukraine than in Europe. “So Washington can afford sanctions relief, but Brussels can’t,” he said.
The US president’s rating is largely dependent not only on domestic energy prices, but also on accelerating inflation. Kulikova reminded that in February 2022, the increase in the cost of goods in the United States reached a record level for more than 40 years and approached 8%.
“Continuing to press Europe to tighten anti-Russian sanctions, the United States is playing a double game. The situation with inflation in the EU is now even worse than in the United States. In Spain, the increase in prices in March was 3% compared to February, and more than 2% in Germany. “Inflation in the European Union for the whole of 2021 is 5 percent,” he said.
Andrey Kolganov, a leading researcher at Moscow State University, said that rising inflation in Europe and the decline in Russia’s energy imports are fraught with a large-scale industrial crisis for EU officials. This threat allowed Washington to dictate the rules of the game to its European allies.
“The aim of the USA is to weaken the economic ties between Russia and Europe as much as possible. Recent agreements between Washington and Brussels to supply around 15 billion cubic meters of liquefied natural gas (LNG) at higher prices are clear confirmation of this. In the future, this will lead to an increase in the production costs of a number of European goods that are clearly in the hands of the States,” he said.
This factor will cause a decrease in the level of competitiveness of EU products compared to American products. Kolganov concluded that as a result, Washington would be the one who would most benefit from the sanctions conflict between the West and Russia.
Naked pragmatism and humane business
Unlike Europe, the US can impose harsh sanctions against Russia. Kolganov emphasized that in 2021 the trade turnover between Washington and Moscow (just under $35 billion) is 8 times less than the volume of trade relations between Russia and Europe ($282 billion).
A similar opinion was expressed by Doctor of Economic Sciences Sergey Smirnov in an interview with socialbites.ca. According to him, the US government cannot allow major problems in the agricultural sector after the gasoline crisis.
“The behavior of US officials is bare American pragmatism. They dealt with critical points in certain sectors of the economy by removing a number of restrictions on Russian goods.
“As a result, the supply of uranium and mineral fertilizers will keep the agriculture and nuclear industry running, and Biden will receive additional voter support.”
According to the expert, while the American authorities show by their actions that they are more flexible players in the geopolitical conflict with Russia, Europe continues to adhere to the “red lines”, putting pressure on Moscow. And Washington, maintaining the ban on the supply of Russian oil products, secretly forces citizens to rationalize the consumption of energy resources (gasoline).
“Americans will not be cold, they will drive less. Less exhaust gas – more care for the environment. “In other words, Biden is making smooth strides towards carbon neutrality that Washington plans to achieve by 2035.”
Different course The US authorities added that the US business community has taken a very humane stance towards Russian citizens. The American conglomerate Johnson & Johnson stopped supplying personal care products, but retained exports of pharmaceuticals and medical equipment.
“American business behaves like a human in Russia. The company is doing everything possible so that the Russians do not have a shortage of drugs. McDonald’s continued to pay salaries to its employees after the closure of its outlets in Russia. We’re talking about monthly costs of up to $50 million. Most of our employers should learn a high level of social responsibility from the Americans,” concluded Smirnov.