Russian President Vladimir Putin chairs a meeting on economic issues in Moscow on February 17, 2022. … [+] (Photo by ALEXEY NIKOLSKY/Sputnik/AFP via Getty Images)
Russia’s economic problems caused by sanctions imposed after the invasion of Ukraine provide lessons for US trade and immigration policy. Blocking imports and new workers may seem like a good idea to opponents of trade and immigration, but economists have found such policies harm consumers and damage the economy. The long-term impact of sanctions is a disaster for Russia that American policymakers can learn from.
Russian government officials have concluded (privately) that their economy is in trouble. “Russia could face a longer and deeper recession as the impact of U.S. and European sanctions spreads, crippling sectors that the country has relied on for years to power its economy, according to an internal report prepared for the government,” reported Bloomberg, which observed. draft report.
Losing Skilled People: “The report estimates as many as 200,000 IT [information technology] specialists could leave the country by 2025, the first official forecast of the expanding brain drain,” according to Bloomberg. Russian economist Alexander Isakov has concluded, “With reduced access to Western technology, a wave of divestment by foreign companies and demographic headwinds ahead, the country’s growth potential will shrink to 0.5%-1.0% in the next decade.”
The events in Russia raise obvious comparisons with the problems facing the United States. The low number limit caused the US Citizenship and Immigration Services to reject about 400,000 (80% of) applicants for new H-1B petitions in April 2022. (Most H-1B professionals work in the technology field.) Economists Giovanni Peri and Reem Zaiour found 2 million more working-age immigrants due to the pandemic and US immigration policies during the Trump administration. The “lack of immigration” has contributed to inflation, rising prices and an inability to fill job openings across the skill spectrum.
“The report on the Russian economy confirms what should be as obvious as a nose on a finger, which is that highly educated immigrants promote the economic growth of any country, including the United States,” said Randel Johnson, a visiting scholar at Cornell. Law School and years of experience with immigration policy in and out of government. “That the US Congress has not acted on this reality by increasing the number of H-1B visas is nothing but a travesty.”
Johnson says the US’s problems extend beyond technological talent. “The uncontested demographic projections of an aging workforce in the United States, as in Russia, threatens the viability of Social Security and shows that we must find ways to bring more immigrants through a legal flow of workers. It will allow America to meet its economic needs, especially in industry services, such as the health sector, to meet the needs of our elderly population.
Imports Matter: US elected officials typically cite the benefits of exports when arguing for expanded trade or new trade agreements. During the Trump administration, lifting costly tariffs on imports was a priority, and the Biden administration has largely maintained those tariffs. Economists point out that imports are essential to provide consumers with lower prices and a greater variety of goods while providing companies with the inputs they need to make products, including for export.
The Bank of Finland’s report on Russia’s foreign trade found, “Overall, our analysis shows that the war and sanctions will lead to an increase in the Russian economy in the coming months. The latest forecast predicts a decline in Russia’s total GDP [gross domestic product] of about 10% in 2022 and 2023.
Russia’s export earnings have been strong because of oil, said John Murphy, senior vice president for international policy at the US Chamber of Commerce, in an interview, but “imports have collapsed, including industrial parts and components, and this has destroyed Russia’s productive economy and its ability to produce automobiles, pharmaceuticals, and defense products. Murphy says it shows the other international trade benefits you get from exporting: “It’s the useful imports you get.”
Russian companies and consumers have found out the hard way how important and useful imports are. “Western governments require some domestic industries to seek licenses before selling to Russia, and they are rarely granted,” The Economist reported. “The ban goes beyond ‘dual-use’ products – those with military and commercial applications, such as drones and lasers – to cover advanced kit such as chips, computers, software and energy devices. It also targets low-tech items, such as chemicals and commodities… That’s bad news for the country’s manufacturing sector, which needs imported inputs.
The Economist paints a bleak future for Russia that lacks imports and skilled workers: “As long as America and its allies maintain their sanctions, Russia’s industrial backbone, intellectual backbone and international relations will fade, and its future will be one of slack productivity. , little innovation and structural inflation. Economists wrongly predict an instant crash. What Russia gets is a one-way ticket to nowhere.
What does the US get from Russia?
The main products exported from Russia to the United States are Refined Petroleum ($4.62B), Platinum ($2.16B), and Crude Petroleum ($979M). Over the last 25 years, Russian exports to the United States have grown at an annual rate of 4.51%, from $3.94B in 1995 to $11.9B in 2020.
What does the US import from Russia? Read also : Minister Blinken’s call with Ukrainian Foreign Minister Kuleba – United States Department of State.
What products come from Russia?
Russia is a key supplier of not only oil and gas, but also grain, metals and fertilizers. Sanctions on Russia have led to a sharp rise in various commodity prices.
Who is Russia’s biggest trading partner?
Russia’s Top Trading Partner To see also : Business leaders in the UK are the darkest since the early days of covid.
- China: US$68 billion (13.8% of total Russian exports)
- Netherlands: $42.2 billion (8.6%)
- Germany: $29.6 billion (6%)
- Turkey: $26.5 billion (5.4%)
- Belarus: $22.8 billion (4.6%)
- United Kingdom: $22.3 billion (4.5%)
- Italy: $19.3 billion (3.9%)
- Kazakhstan: $18.5 billion (3.8%)
Who is Russia’s biggest importer? Russia’s top five import partners in 2021 are China, Germany, the United States, Belarus, and South Korea. The value of Russian imports from its top partner China amounted to almost 72.7 billion US dollars in that year. Imports from Germany are worth about 27.4 billion US dollars.
What is Russia’s number 1 export?
Crude oil is Russia’s biggest export, accounting for $123 billion of its export revenue, data for 2019 show. Next on the list is refined oil – things like petrol and diesel – at $66. Read also : $2.8 Billion in Additional US Military Aid to Ukraine and its Neighbors.2 billion, gas at $26.3 billion and coal at $17.6 billion.
What are Russia’s 5 biggest exports?
Exports Russia’s main exports are Crude Oil ($74.4B), Refined Oil ($48B), Petroleum Gas ($19.7B), Gold ($18.7B), and Coal Briquettes ($14.5B), exporting mostly to China ($49.3B), Britain United Kingdom ($25.3B), Netherlands ($22.5B), Belarus ($15.8B), and Germany ($14.2B).
Is Russia economy growing or shrinking?
The Russian economy is shrinking According to the World Bank report, 2022 will be a bad year for the Russian economy. Gross Domestic Product (GDP) is expected to drop by more than 11%. This is the largest drop in GDP since the collapse of the Soviet Union.
How is the Russian economy in 2022? According to estimates, Russian imports in 2022 will decrease by 35.2% (compared to 2021) while exports in 2022 will decrease by 30.9% (compared to 2021). Data source: World Bank. Estimates show that the Russian inflation rate will increase significantly in 2022, reaching 22%.
What is the position of Russia in world economy?
Russia is the eleventh largest economy in the world in 2021, with its gross domestic product measured at 1.78 trillion US dollars. In the global ranking based on nominal GDP, Russia is positioned between South Korea and Australia.
Is Russia growing economically?
Reshetnikov said overall Russian economic growth will be stronger in the coming years than initially feared. He said the economy is on a trajectory to post GDP growth of more than 3% a year after 2024 and stabilize at the country’s long-term growth rate of around 3% a year by 2026.
Why is the ruble getting stronger?
The main reason for the recovery of the ruble is soaring commodity prices. After Russia invaded Ukraine on February 24, high oil and natural gas prices rose even further.
Do you buy Russian rubles? You can also buy Rubles through the bank, but usually they will only sell to customers who are going on holiday to Russia. https://www.torfx.com/ is worth considering. They have thousands of great reviews and an easy to use platform.
What is the best performing currency?
Russia’s ruble is the world’s best-performing currency but its strength masks serious problems in the economy, political scientists say | Business Insider India.
What is the highest the Russian ruble has ever been?
highest: 127.22 RUB on 20 Mar 2022. Average: 67.547 RUB during this period. Lowest: 52,500 RUB on 29 Jun 2022.
Why is the ruble so strong?
One of the main reasons that the ruble has shown such strength this year, the rising price of oil and natural gas has allowed Russia to rake in billions of dollars from commodity exports. At the same time, heavy sanctions mean Russia is buying more imports from abroad.