However, the situation changed when the war broke out between Russia and Ukraine, leading the US and its allies to prohibit Russia from exporting crude at a price exceeding US$60 per barrel. The intention behind setting a price cap was to prevent Russia from utilizing export earnings, including dollars and other hard currencies, to finance the war against Ukraine. India was eager to take advantage of this opportunity to purchase crude at a lower price, given that the global crude prices ranged from $110 to $123 per barrel, and the war posed a threat to supply chains. Additionally, there were efforts to restrict foreign exchange reserves held in dollars.
As a further measure, payments to Russia were banned from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system. Since most international payment settlements rely on SWIFT, conducting business with Russia became exceedingly challenging. Nevertheless, alternative methods were employed successfully, such as utilizing third parties for customary payments involved in global commodity trading, where specialized trading houses facilitated trade between countries. Unlike the punitive measures taken against Iran, these efforts were less severe. The current situation does not pose such a dire threat.
Bu hikaye BUSINESS ECONOMICS dergisinin June 1 - 30, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye BUSINESS ECONOMICS dergisinin June 1 - 30, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
A new chapter in Singapore's Leadership: continuity and change
The departure of Prime Minister Lee Hsien Loong marks the beginning of a new era in Singapore, as Lawrence Wong ascends to the post of the country’s fourth Prime Minister.
Disabled children: Education and rehabilitation
Child disability is, in fact, a serious and challenging problem of the world.
India's 2024 Elections: Is it a fight between a macro & micro view of development?
The seven phase massive election process in the largest democracy of the world is on; and the churn throws up hope as well as despair.
Empowering India's workforce: launch of comprehensive skill training programme
Srihari Global IISD Foundation, in collaboration with Birla Open Minds and SAHAJ Retail Private Limited, has launched a groundbreaking skill training program aimed at enhancing employment opportunities and fostering career growth across India.
DVC achieves record power generation in its 75-year journey
The Damodar Valley Corporation (DVC) has accomplished a significant milestone by generating 43.32 billion units of electricity during the fiscal year 2022-23.
"Sticky" inflation is still a global worry!
While major world economies have successfully tackled inflation over the last six months by bringing retail inflation (the monthly consumer price index-based inflation) close to the central bank target rates of 2% with and emerging economies including India’s Reserve Bank of India have achieved some measure of success, all is not well yet.
Emerging alarming trends in India's financial sector
The onset of the new financial year FY25, commencing on April 1, 2024, does not promise any relief from the economic challenges persisting since the previous fiscal year. In recent months, various banks and financial institutions in India, including Bank of Baroda, HDFC Bank, Kotak Mahindra Bank, PayTM, IIFL, JM Financial, and Paisa Lo, have been making headlines for all the wrong reasons.
Economic insights from China
Economic indicators released by Chinese authorities, media outlets, and researchers suggest a recent downturn in China’s economic fundamentals.
Rubber planters confront challenges of declining prices, labour shortages, and erratic monsoons
Natural rubber (NR) stands as a crucial plantation commodity in India.
Is the Indian Tea Industry at a crossroads?
The Indian tea industry marks a significant milestone this year as it celebrates two centuries of journey since its inception.