Many have compared the unprecedented US-led Western sanctions against Russia to a genocidal economic weapon that has never been used in this way against any other country. This is a complex plot to destroy the entire nation, including the Russian economy, on a social and political level. The Ukraine crisis is merely the catalyst for what has become the greatest catastrophic European disaster in history. Any embargo is a double-edged sword, harming Russia while also jeopardising the embargoed nation. However, Western sanction seems to me that a canal was dug, and a crocodile was introduced. In reality, Westerners are caught in a snare they cannot escape. How global commodity and fuel prices have begun to rise due to sanctions and escalating conflicts, the stagnating condition of inflation, and how social instability has already started to emerge in European nations is perfectly timed. Despite considerable losses in exports since the beginning of the crisis, Russia's economy remains robust, whereas Western nations are at risk. In the first week of May, the 5th, the UK's central bank once again increased interest rates to their highest level in thirteen years. Equally applicable to the United States. The interest rate increase on May the 4th was the largest since 2000. Extreme economic, social, and political difficulties currently exist in the sanctioned nation. Let's put some light on the actual situation. However, I will limit my discussion to a few key points in the interest of clarity and coherence.
The ruble, Russia's currency, will be my first consideration. Since Russia recognised the Donetsk and Luhansk regions on February the 21st and the beginning of a special military operation in Ukraine on February the 24th, the EU has placed various sanctions on Russia. Personal sanctions, economic restrictions, and diplomatic sanctions are all included in the several stages of the embargo. The EU and its allies, particularly NATO nations, appear to be competing for sanctions. It seems they pledged that we must destroy the Russian economy by whatever means necessary, even if it involves chopping off our legs. Is this the ancient society's mindset in the twenty-first century? Soon after the initial two rounds of sanctions, the ruble fell. As a result of unprecedented international sanctions against the country's financial sector, the Russian ruble has dropped by more than 40 per cent since trading began on February the 28th. On that day, I was astonished to observe the West's glee and excitement throughout all media, political, and military arenas, including the United Kingdom. This appears to be civilisation. Or the untamed nature of society? As they did a few years ago, when fuel costs dropped, many commentators forecast a complete collapse of the Russian currency. None of these purported so-called analysts' future forecasts has survived. Because their discourse is illogical, especially when the subject is antagonistic. Western analysts are highly skilled in speculating.
The value of the Russian ruble has risen to its most great point concerning the euro, the dollar, and the pound in the past two years. However, people in the West do not appear to have any reaction to this news; in fact, even journalists and other media members are remaining silent. This is the opposite of what Western sanctions are supposed to achieve! Even though all of the major Russian banks have been cut off from the SWIFT system, which facilitates financial transactions and payment services for banks worldwide, the Russian ruble has made a remarkable recovery as a direct result of government involvement. The Japanese yen, which is the world's third-most traded currency, has fallen to a 20-year low against the US dollar, the worst performance among the first 40 currencies tracked this year. This comes when Japan is paying a hefty price to follow the US lead over Russia. The ruble was a better option. In recent days, the value of one ruble may be shown to be growing when compared to one dollar. During currency trading on the Moscow exchange on May the 11th, the ruble dropped below 74 rubles to one dollar for the first time since February 2020. This week Rubble is again stronger than US dollar which stands below 60 Ruble for one dollar. This marked the lowest point that the ruble had reached against the dollar since February 2020. According to information gathered from trade, the exchange rate between the ruble and the euro has dropped below 71 rubles for the first time since June of 2016. Since the beginning of the year, the Russian ruble has reportedly become the currency with the best performance globally, as Bloomberg reported. Since the beginning of the year, the value of the ruble has increased by more than 11 per cent when measured against the dollar. Not only are the crushing economic sanctions imposed by the West on the Russian economy responsible for today's rise in the value of the ruble, but the different steps taken by the government are also a contributing factor. Another significant setback for the Western side.
Now let's talk about oil and gas. Already struggling with rising living costs, Europeans now face even more difficulties in making ends meet as fuel and food prices rise sharply due to the conflict in Ukraine, threatening to undermine the recovery of a fragile post-Covid economic infrastructure. Analysts predict that the cost of gasoline and diesel will continue to rise in the coming days. Fuel prices have increased by 24.5 per cent in the last year, according to the UK's Office for National Statistics (April 2022). The cost of production in the retail sector increased by 12.6% due to a 10% increase in fuel prices. Furthermore, the sector's indirect impact was 5.13 per cent. During the first two months of the Ukraine crisis, those imposing sanctions jokingly told Russia that selling fuel to the EU helped Russia earn nearly double the revenue Putin was waging in Ukraine's illegal war. According to a report by a Finnish-registered think tank, the top 16 importers, excluding China, were the ones imposing sanctions on Russia. During the crisis, the European Union (EU) purchases approximately 61 per cent of Russia's fuel. Yesterday, the British government announced an additional 15 billion pounds to assist millions of low-income households with energy bills and rising living expenses.
More than three months have passed since Russian President Vladimir Putin's Special Military Operation in Ukraine. Still, despite predictions of ruin for Russia's economy, oil exports to countries such as India, China and Turkey, including European countries, have increased, and Russia's financial sector has not faced a crisis. According to Edward Fishman, a former State Department Europe expert, Putin makes at least $1 billion per day selling oil and gas, which comes from Europe. European countries are sending separate military aid to Ukraine, but their payments to Russia for oil and gas fall short of expectations. Despite Western sanctions on Russia's financial sector, oil exports increased to 3.8 million barrels per day in April, up from 3.3 million barrels. According to Amber and Global Witness, the EU's current gas plans will increase the EU's energy bill by 264 billion in 2030 due to high gas prices. According to Bloomberg, the International Energy Agency (IEA) stated recently that Russia's oil revenues have increased by 50% this year, despite trade restrictions imposed following a special military operation in Ukraine.
According to experts, sanctions may have some long-term effects. Still, because Russia is the world's 11th most prosperous country and its immeasurable importance in the global market, such sanctions will do more harm than good to the sanctioning countries. Sanctions have historically worked better against smaller, weaker states than larger, stronger ones, and they have rarely failed to make timely changes. The current Western sanctions may take years to impact the Russian economy significantly, but there is no doubt that they will cause a significant collapse in the Western economy.
Meanwhile, disruptions in inflation and supply chains threaten Western corporate profits, while raising interest rates to keep inflation under control is putting consumers in danger. Russia is the world's leading natural gas exporter, the world's second-largest natural gas producer, and the world's second-largest exporter and producer of oil. Russia has the fifth-largest foreign exchange reserves globally, with a workforce of approximately seventy million people, making it the sixth largest in the world. The Russian economy has suffered and also will suffer no doubt to some extent as a result of sanctions, but it will hurt more Western nations. Annual inflation in Europe reached a 40-year high of 7.5 per cent last month, and UK inflation is already 9%. I am convinced that, as a result of these Western sanctions, the entire world will experience another economic recession, a massive food crisis, millions of deaths, and a return to poverty for millions of people. Obviously, this will hinder the post-covid recovery of many nations. However, it appears that western nations still lack common sense.