Valdis Dombrowskithe EU Trade Commissioner warns against growing fatigue over the war in Ukraine.
Sanctions are working, Dombrovsky predicted at the Davos meeting that the recession in Russia will continue.
“If you look at it, the Russian economy was in recession last year and will be in an even deeper recession this year.”
Dombrovsky He pointed out that the Russian economy was supported by the fact that energy prices hit record highs due to the impact of the Ukraine war.
Sanctions have a cumulative effect, he said, with personal, trade and economic restrictions working in tandem.
It is important to continue to put pressure on Russia’s energy sector through sanctions, Dombrovskis continued, noting that with Russia’s oil embargo in the EU and oil price caps in the G7, “we were a little late and behind.” Stated.
“It’s very important to stay on course,” he concludes.
Davos heard this morning that sanctions against Russia are playing a key role in the Ukraine war.
RussiaRogoff, is on its way to becoming a giant Iran with incredible poverty compared to Cuba, Venezuela and perhaps what the Russians are accustomed to.
Rogoff said he believes the Russian economy is weaker than official figures and doesn’t believe anything Russia says when it comes to numbers.
Rogoff points to underemployment levels, and fiscal earnings show manufacturing and other parts of the economy are slowing.
The most important sanctions are those that slow the Russian military machine, Rogoff explains. He suggests that the gray market should be further cracked down, as consumer devices contain chips that can be reused for military purposes.
We will never come to the conclusion that sanctions are not working. It’s second only to military intervention, but it’s absolutely critical, Rogoff argues.
He also said there are examples where regime change can be achieved through sanctions, such as apartheid in South Africa.
“If sanctions are maintained for a long period of time and then strengthened further, they will be effective.”
Good morning from Davos on the final day of the World Economic Forum.
Hopes that the global economy could slip into a mild recession are tested today as top central bankers and policymakers assess the situation.
Crystalina GeorgievaIMF Managing Director, Christine LagardeGovernor of the European Central Bank, Governor of the Bank of Japan Kuroda Haruhiko All appear in panel on economic outlook alongside France’s finance minister Mayor Bruno and professor Lawrence Summers.
They will discuss future growth and the policies needed to stabilize the global economy at 11am Davos time (10am UK).
The talking point here is that the global economy may pick up later this year.
Opinion polls suggest business leaders and economists are particularly pessimistic, with more households and businesses facing financial hardship, a sign the global economic growth engine is slowing. even though there is.
The Davos delegation is also pondering how the UK’s economic outlook will change under a future Labor government after Keir Sturmer and Rachel Reeves attended Davos yesterday.
Sturmer condemned Rishi Sunak’s decision not to attend the Davos meeting.
As one business insider said yesterday:
“Rishi was bound and made the decision last year not to come at a moment when it felt impracticable.
Rishi would have stolen the entire show.
“Sturmer and Reeves have set the tone very well. .
The message sent to Davos by Labor heavyweights was that Britain was “open for business” as they sought to lure world leaders and chief executives with a reassuring message.
They also joined the WEF elite last night at JP Morgan’s party on the boardwalk in Davos. Sturmer chatted with Tony Blair When Jamie Dimon.
The economic outlook for Russia and the impact of artificial intelligence are also on the agenda today.
9am Davos / 8am GMT: Panel Session on AI and White Collar Jobs
9am Davos / 8am GMT: Panel session on mapping Russia’s economic trajectory
Davos 10:15am / UK 9:15am: Panel Session on Youth Action
Davos 11am / 10am GMT: Global Economic Outlook: Is This the End of an Era?