Russia’s invasion of Ukraine and the resulting sanctions imposed on Moscow are contributing to surging global prices that Americans are feeling throughout the economy, particularly at the grocery store and the gas pump.
Russia’s status as a major exporter of raw materials, especially oil and natural gas, along with Ukraine’s position as a key agricultural supplier to regions including Africa and the Middle East, make the conflict between the two countries a flashpoint for commodity prices, which were already on the rise due to the pandemic.
The U.S. has joined allies in unleashing a spate of sanctions on Russia in response to its invasion of Ukraine.
Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, told The Hill many of the sanctions have been aimed at raising costs for Russia and restricting how its government accesses the global financial system.
“So, limiting their bank’s ability to the government’s ability to use global banks,” Ziemba continued. “And the sanctions program was set up in a way that tried to use the areas of asymmetry that would hurt Russia more than it would hurt the U.S. and Europe.”
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