FT News Briefing The squeeze on Russia continues
Mar 1, 2022
Rising energy prices prompt an emergency meeting by the International Energy Agency. Western sanctions have thrown Russian financial markets into chaos, driving the rouble to near collapse. Meanwhile, Gulf states maintain a neutral stance, reflecting complex ties with Russia. The podcast further explores the significant economic consequences for Russia, including currency devaluation, and reveals how Gulf countries are strategically managing their financial relations amidst shifting geopolitical landscapes.
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IEA Meeting on Oil Reserves
- The International Energy Agency will convene to discuss releasing oil reserves to stabilize prices.
- This is the first such meeting since the 2011 Libyan civil war and only the fourth in history.
Impact of Oil Reserve Release
- Releasing oil reserves sends a market signal but may have limited impact given current instability.
- Russia's substantial oil production makes a significant offset unlikely.
Impact of Sanctions on Russian Economy
- Western sanctions are severely impacting Russia's financial system, causing a ruble devaluation.
- This devaluation destabilizes banks and savings, unlike devaluations that boost exports.