Pakistan’s Leader Imran Khan to offer help to Putin, Signs Trade deal with Russia : At a time when Western sanctions are wreaking havoc on Russia’s economy, Imran Khan brazenly promises to import two million tons of wheat as well as buy gas from the country.
On the same day that Putin launched the invasion of Ukraine, Imran Khan signs a trade agreement with Putin after meeting with him at the Kremlin.
Due to the deterioration of the rouble’s value, the Bank of Russia increased its benchmark interest rate from 9.5 percent to 20 percent.
The Kremlin is anticipated to resort to China and sell assets in order to acquire cash in order to keep the war going and the economy afloat.
Russian President Vladimir Putin believes that the extraordinary sanctions imposed by the West to damage him are the result of a “empire of falsehoods.”
A large number of Russians are in a state of terror. They are withdrawing cash from ATMs because they are concerned that the state will become like North Korea or Iran.
In just 48 hours, generous readers of the Mail and MailOnline have donated a total of £710,000 to our Ukraine campaign. The total amount raised is £1.2 million, with £500,000 coming from Lord Rothermere, the owner of DMGT.
Today, Pakistan became the first large country to openly support pariah President Vladimir Putin, as it signed the first new economic agreement with Russia since the invasion of Ukraine in 2014.
Following a meeting with Russian President Vladimir Putin on Thursday, the day before his country sent troops into its sovereign neighbour, Pakistani Prime Minister and former cricketer Imran Khan announced that his country will import approximately 2 million tons of wheat as well as supplies of natural gas.
The fact that Russia is embroiled in international isolation and a string of sanctions that have crippled its economy has not deterred Khan from supporting the prospect of sending billions of dollars into the Kremlin’s coffers, claiming that Pakistan’s economic interests “needed” it.
On the two-day journey, he explained: ‘We went because we have to import 2million tons of wheat from Russia, so we went there.’ First and foremost, we have inked deals with them to import natural gas, which is necessary because Pakistan’s own natural gas supplies are dwindling.’ Khan said, adding, ‘Inshallah (God willing), the time will tell that we have had excellent discussions.
Putin moved today to prevent foreign companies from withdrawing their operations from Russia and to seize their cash in order to prop up the country’s collapsing war economy, following the announcement by BP and Shell that they would sell £15 billion ($20 billion) in joint ventures following the invasion of Ukraine.
Russian Prime Minister Mikhail Mishustin stated that a presidential decree had been signed as Western countries stepped up sanctions against the country, the rouble plummeted to an all-time low, and Russians stood in line at ATMs around the clock amid a run on the country’s banks.
During a government conference in Moscow, Mishutin stated that Russia will impose temporary restrictions on foreign investors wishing to sell their Russian assets in order to guarantee that they make “a thoughtful decision rather than one influenced by political pressure.” However, Mishustin did not disclose specifics on how it will be implemented, as Shell confirmed to MailOnline that its plans to cut connections with Russia will go as planned. BP has not yet responded to the report.
Russian Prime Minister Vladimir Putin stated: ‘Under the current sanctions environment, foreign entrepreneurs are forced to make decisions not based on economic considerations, but rather under political pressure. In order to provide businesses with a reasonable amount of time to make a well-informed decision, a presidential decree was written to place temporary restrictions on the sale of Russian assets.
It came as it was revealed that the West is still paying Russia more than $1 billion per day for oil and gas, which Putin can use to fund his $15 billion per day invasion of Ukraine, despite the fact that his troops have been slowed by fierce resistance from Volodymyr Zelensky’s heroes and are unable to advance.
Shell said last night that it will end its collaboration with Gazprom and withdraw from the disputed Nord Stream 2 pipeline project, as Western nations reel from President Putin’s belligerent behavior in Eastern Europe. Shell is rumored to have provided £600 million in financing for the venture.
Shell has warned that it could suffer a £2.2billion loss as a result of its decision to abandon a number of projects. The company’s holdings include a 27.5 percent share in Sakhalin 2 — a flagship facility in Russia’s Far East that is majority-owned by Gazprom and produces around 4 percent of the world’s liquefied natural gas production.
However, it did not disclose to whom they would be selling their stakes. It is not, however, withdrawing its support from Russia completely. A network of over 400 gas stations and a lubricants business in the country, both of which the company indicated it plans to maintain.
Following BP’s revelation that it was ending its relationship with the Kremlin-backed oil major Rosneft, which was valued at roughly £13 billion last year, Shell made its announcement the following day. BP is currently attempting to sell its 19.75 percent interest in Rosneft, and current CEO Bernard Looney has resigned from the company’s board of directors.
However, because of Putin’s control over the world’s oil and gas supplies, Europe and the United States continue to purchase about $1 billion worth of Russian oil and gas every day. The United Kingdom imports a modest amount of goods from Russia as well.
Although the Kremlin receives a large daily infusion of cash from the West, the Kremlin is experiencing unprecedented liquidity issues. China’s central bank, which raised interest rates to 20 percent just a day earlier, is anticipated to reach out to its friend to try to sell off Chinese assets worth as much as $77 billion back to the Chinese government. The United Kingdom, the European Union, and the United States will be watching to see how far President Xi is willing to go in support of Putin and his war.
Russia’s ruble fell by 30% versus the US dollar as a hint that the Russian people are paying a high price for Vladimir Putin’s invasion of Ukraine in 2014. After hitting rock bottom yesterday, the situation has stabilized this morning.
Moreover, following several days of instability on the financial markets, Russian officials refused to open the Moscow stock exchange, resulting in enormous lines forming outside banks as worried families attempted to withdraw cash.
‘There are no dollars, there are no roubles, there is nothing,’ a Moscovite named Anton explained. It’s true that there are roubles, but I have no interest in them. I’m at a loss on what to do next. I’m concerned we’re on the verge of becoming North Korea or Iran right now’.
One designer, Andrey, told the BBC that rising interest rates have made it impossible for him to pay his mortgage. ‘If I had the opportunity to leave Russia right now, I would.’ ‘However, I am unable to leave my job.’
‘I intend to find new customers in foreign countries as soon as possible and to leave Russia with the money I had set aside for the first instalment. People have been arrested for speaking out against ‘the party line’ in this place, which makes me feel unsafe. ‘I’m embarrassed, and I didn’t even vote for the people in charge.’
Russia’s central bank increased interest rates from 9.5 percent to 20 percent in response to the dramatic depreciation of the rouble and the rapid rise in consumer prices. A further order was issued, requiring corporations to liquidate 80 percent of their foreign currency.
As international sanctions drove the Russian rouble to plummet, prompting a nationwide rush to withdraw cash, an amused Vladimir Putin yesterday blasted the West as a “empire of falsehoods” and announced a restriction on Russians sending money outside starting at midnight.
In response to the tremendous uncertainty created by Russia’s invasion of Ukraine, European stocks fell and oil prices rose back above $100 a barrel on Tuesday, although the rouble held steady as Moscow rushed to shore up support for its troubled markets, according to Bloomberg.
Stock trading in Russia’s stock markets remained suspended, and certain bond trading platforms no longer displayed prices, although trading in the major financial centers of Europe and Asia continued in an orderly but nervous manner over the course of the night.
In the meantime, losses for the pan-European STOXX 600 index were beginning to rise again, with the index down about 2% by midday and Wall Street set to open approximately 1% lower in New York later in the day.
Mining and oil & gas companies had originally risen, but those gains had since eroded, and bank stocks had fallen by as much as 4 percent, as investors became concerned that interest rate hikes might be postponed.
According to Paul Jackson, Global Head of Asset Allocation Research at Invesco, if the battle does not come to a swift conclusion, the global economy might be lowered by 0.5 percent to 1 percent.
Even so, he cautioned that some parts of Europe could experience a recession and that inflation was likely to remain high for a longer period of time. He added that the current slowdown was enough to worsen it but not enough to for it to collapse into recession.
Russian assets plunged in value on Tuesday, with the London-listed ishares MSCI Russia ETF dropping by half to a new record low and Russia’s largest lender, Sberbank, plummeting by a quarter as investors fled the country in droves.
Major money managers, like hedge fund Man Group and British asset management abrdn, have been reducing their exposure to Russia even as the rouble has fallen to a record low and trade in the country’s bonds has been halted.
‘There is certainly a willingness on the part of asset managers and benchmark providers to reduce their exposure to Russia in their portfolios and indexes,’ said Kaspar Hense, a senior portfolio manager at Bluebay Asset Management in London. “We have seen a significant increase in the number of asset managers and benchmark providers reducing their exposure to Russia.” ‘The fundamental question is where do buyers show up?’ says the author.
What Russia is paying the price for Vladimir Putin’s £15 billion per day war with the United States
The United States, the European Union, the United Kingdom, and their allies have all imposed a slew of economic sanctions against Russia in recent years. They include a freeze on the assets of major Russian banks, the exclusion of Russia from the SWIFT payment system, which is used by banks all over the world, and a ban on flights by Russian private and commercial planes throughout the EU and the United Kingdom. There are also restrictions on the export of certain goods and technologies to Russia, which has a negative impact on the operations of enterprises that rely on these imports to stay afloat.
read also : How Ukraine’s city of Kyiv survived another night of heavy bombardment from russian troops
Because of Western sanctions and investor concerns about the economic consequences of a lengthy war with Ukraine, Russia’s economy has suffered a 30 percent decline in value against the US dollar yesterday, making imports much more expensive for the country’s citizens.
Russian residents have taken to taking their money from banks and cash machines as the country’s economic future is uncertain. However, if a large amount of money is removed in a short period of time, this might generate serious problems for the banks, and it could even lead to their failure.
To encourage Russians to retain their money in the banks, the Russian central bank has more than doubled interest rates to a whopping 20 percent, according to the Financial Times. However, while this would be beneficial to savers, it will have a major negative impact on individuals who are in debt or who have taken out loans.
5) The financial toll of war: Russia is also saddled with a massive war debt, which will only grow in proportion to the length of time the country’s invasion of Ukraine continues. According to some estimates, the invasion will cost Russia as much as £15 billion every day in economic losses. Some precision guided missiles, for example, can cost as much as £30,000 per missile. Typically, a Russian tank costs roughly £2million to build and maintain. Since the beginning of the year, Ukraine claims to have seized or destroyed more than 200.
After falling over 30% in the first hour of trading, the currency recovered to trade 20% down at the close. As a result of the currency’s deteriorating value, ordinary Russians have been spotted lining up at ATMs across the country, even in Putin’s home city of St Petersburg, to withdraw money from their accounts.
However, as the Russian economy continues to deteriorate, the Russian President, during an emergency meeting with economic officials in the Kremlin yesterday, took yet another blow at Western sanctions.
The president greeted officials with a sneer and explained that he had invited them to discuss concerns relating to the economy. He went on to say, ‘I mean of course the sanctions that the so-called Western community – the empire of lies – is attempting to impose against our country.’
Yesterday afternoon, Putin issued a decree prohibiting the deposit of cash in any foreign accounts beginning tomorrow, in order to prevent cash, particularly that owned by wealthy Russians, from being transferred out of the country and further destabilizing the economy.
The United States cut off the Russian central bank as part of a new round of sanctions, thereby prohibiting Americans from doing business with it and severely reducing Russia’s capacity to defend its currency.
The United States also placed sanctions on the Russian state investment fund, with a senior administration official stating that Vice President Joe Biden wanted to ensure that the Russian economy “falls backward as long as Putin continues his assault of Ukraine.”
During a speech in which she unveiled new powers to prevent Russian banks from clearing payments in sterling, Foreign Secretary Liz Truss said all Russian banks would be subjected to a comprehensive asset freeze within days. The new powers will initially target the country’s largest bank, Sberbank. Grant Shapps, the Transport Secretary, sent a letter to British ports instructing them to turn away any Russian ships.
Even Switzerland, known for its neutrality, said that it was emulating the EU’s sanctions regime and that it was expelling five billionaires from the nation.
In a desperate attempt to defend its currency and economy, Russia’s central bank has more than doubled interest rates from 9.5 percent to 20 percent and refused to allow the Moscow stock exchange to operate.
Despite the effort, long lines could be spotted outside cash machines around Russia at all hours of the day.
People in Saint Petersburg were seen queuing around the corner to use ATMs that were close by, according to photographs. It comes as fears grow that Russia’s economy would collapse as a result of harsh Western sanctions implemented in response to president Vladimir Putin’s now-failing invasion of Ukraine.
The enormous interest rate hike, according to the company’s board of directors, was the result of a “drastic change” in the “external conditions for the economy.”
Top experts and the finance ministry also instructed exporting enterprises to sell 80 percent of their foreign currency income on the open market in an effort to bolster the rouble, whose value versus the dollar and the euro continued to plummet on the Moscow Stock Exchange on Monday.
Despite efforts by banking executives to keep the ship afloat, the Russian rouble has sunk to an all-time low as the West’s sanctions over the Ukraine war begin to exert pressure on the country’s economy.
The European Central Bank also issued a warning on Monday, stating that the European unit of Russian state-owned Sberbank – one of the Russian banks targeted by the United Kingdom – was on the verge of going insolvent.
In response to Vladimir Putin’s savage invasion of neighboring Ukraine last week, Western nations put sanctions on his country, with the United Kingdom, the United States, and the European Union ratcheting up the pressure in recent days.
Foreign property owners will be required to reveal the true ownership of their homes under new legislation proposed in the UK parliament this week. The use of unexplained wealth orders (UWOs) to take illicit assets – such as mansions, yachts, and jets – will be made easier by the fact that officials will not have to prove to a criminal law standard that the property was obtained as a result of a crime being committed.
According to Foreign Secretary Liz Truss, ‘we will be targeting oligarchs’ private aircraft, we will be targeting their properties, we will be targeting other belongings that they have, and there will be nowhere for them to run to for protection.
Meanwhile, following a fierce retaliation from President Volodymyr Zelensky’s army, Putin’s forces have so far been unable to seize control of the country quickly enough.
Experts estimate that the war is costing Russia as much as £15 billion every day, which is a significant increase in the country’s economic impact.
Hundreds of citizens have been injured and dozens of people murdered as Russian rocket artillery opened fire in Kharkiv, Ukraine’s second-largest city, killing dozens of people.
In addition, new measures to assist Ukrainian refugees escaping the Russian invasion are expected to be implemented as a result of increased pressure on the UK government to act.
Ben Wallace, the UK’s defence secretary, described Vladimir Putin’s decision to put his nuclear troops on high alert as part of the Kremlin’s ‘war of hyperbole’.
Kyiv and other towns survived another 24 hours of shelling, according to Ukrainian President Volodymyr Zelensky, ahead of an emergency General Assembly meeting called by the United Nations. “The next 24 hours will be vital,” Zelensky said ahead of the meeting.
Heavy battle has erupted once more between Russian and Ukrainian forces ahead of the widely anticipated assault on Kiev’s government buildings.
Despite the fact that Ukrainian defenders have put up a valiant fight, a senior US official warned that considerably superior Russian forces will eventually learn and adapt to their tactics.
It has been reported that Chelsea owner Roman Abramovich is attempting to broker a deal to bring the war in Ukraine to a close, and that he has already arrived in Belarus to assist with peace negotiations.
Meanwhile, the Anonymous hacktivist collective has targeted three Russian official news outlets and knocked down the Kremlin website after Russia accused Ukrainian forces of being ‘Nazis’ in a propaganda campaign.
The Bank of Russia raised its key interest rate from 9.5 percent to 10.5 percent yesterday in response to the concerns of a rouble depreciation and increased inflation. The bank also forced enterprises to sell 80 percent of their foreign currency revenues.
‘The external environment for the Russian economy has changed dramatically,’ the report stated. Additionally, the increase ‘will ensure that deposit rates rise to levels necessary to compensate for the heightened devaluation and inflation risk,’ the bank stated.
The actions taken on Monday build on earlier measures announced on Sunday, including the central bank’s pledge that it will resume buying gold on the domestic market in the near future.
It also said that it would hold a repurchase auction with no limits and that it would relax restrictions on banks’ open foreign exchange positions.
It also broadened the range of securities that can be pledged as collateral for loans, and it directed market participants to reject bids from overseas clients to sell Russian-issued debt instruments.
According to a statement released by the Central Bank on Monday, Governor Elvira Nabiullina will attend a press briefing at 1pm GMT on Tuesday.
After plunging as low as 119 against the dollar in early trading, the rouble has now fallen below its previous low of 90 roubles per dollar, having last traded at 109, as the dollar soars in comparison.
Western allies have tightened their grip on the country, including by barring specific institutions from participating in the SWIFT international payments system, among other measures.
A number of restrictive measures were also imposed on the Bank of Russia in order to prevent it from using its international reserves to undermine international sanctions.
Adding to the tensions, Russian President Vladimir Putin ordered Russia’s ‘deterrence forces,’ which include nuclear weapons, to be on high alert.
People on the ground in Russia were already feeling the pinch as Russians raced to cash machines yesterday as a ‘panic’ began to erupt.
As reported by the Telegraph, Russian economist Vladislav Zhukovskiy says there are long lines at ATMs all around the country to withdraw money.
In the Russian financial market, banks are selling the dollar for 100 to 120 roubles. ‘What happened to [central bank chief] Elvira Nabiullina and [prime minister] Mikhail Mishustin?’ I wondered.
Customers of Sberbank received messages early yesterday morning informing them that the bank was ‘operationing normally.’
A commercial mall in Khimki, near Moscow, had a massive queue stretching through it as throngs of people queued up to use an ATM machine.
Visitors to the capital were asked if they would be willing to pay their hotel bills before departing in the event that their credit cards would not function the next week.