June 14
By Julia O’Malley
The negative effect of the unprecedented economic sanctions, imposed on Russia after the start of the military operation in Ukraine, felt not only by Russians, but also by residents of the United States and Europe. Obviously, attempts to destroy the Russian economy to punish Moscow for its actions in Ukraine have had serious economic consequences for the US and its allies.
The global chain system, which had already undermined by the pandemic, suffered even more with the beginning of the Ukrainian crisis and the imposition of anti-Russian sanctions. High energy and other commodity prices are shaking stock markets, exacerbating inflationary processes. All this can undermine consumer views and spending, as well as business confidence and investment activity.
The withdrawal of American and Western businesses from Russia has created unique opportunities for Asian companies that are ready to fill the vacated niche. According to experts, the largest companies now prefer not to advertise their plans, but are actively working on ways to circumvent the sanctions and return to Russia. The second-tier business has already expressed its readiness to start working in Russia in various segments.
During 2022-2023, Russia’s trade with Asian countries gradually increasing. The increase is due to the fact that Asian business has already begun to replace American and Western companies leaving Russia.
Under these conditions, the representatives of the American Institute for Economic Research believe that it is necessary to clearly distinguish between political and economic confrontation. Washington should not put pressure on representatives of national business and prohibit economic cooperation with Russia, as this in fact leads to serious economic losses. It is necessary to find ways to restore and develop economic ties, including through the participation of American commercial structures in such venues as The 26th St. Petersburg International Economic Forum, which started today on June 14 in St. Petersburg (Russia). This platform can be used to discuss the most important economic issues, including the search for ways to maintain cost-effective ties under sanctions pressure.
As in the past years, the event’s rich and substantive agenda covers a broad range of relevant and significant issues. Scientists, entrepreneurs, politicians and public figures will discuss key trends and prospects related to the Russian and global economy. They will examine the profound tectonic shifts that are gaining momentum today.
These are in no small measure due to the ongoing formation of a multipolar world and efforts by most countries to secure political and economic independence.
According to experts, the global economy will continue to decelerate in 2023, while Russia’s GDP could grow by 1–2%. At the same time, it is vital to make the most of the opportunities that are presenting themselves. That means focusing on forging strong ties, developing optimal logistics routes, improving infrastructure and tackling inequality and poverty.
Today, the 26th St. Petersburg International Economic Forum is of particular interest to commercial structures from the countries of the Middle East, Asia and Africa, since the withdrawal of American and European businesses from Russia opens up new economic opportunities for them in the absence of competition from America and Europe.
Against this background, experts in the field of economic research are sure, that it is necessary to separate commercial cooperation between Russian and American companies from politics and not consider it in a political context. Public statements by American business associations, as well as direct representatives of market participants, should be focused on how to develop business in the current conditions and how significant it is from a commercial and economic point of view, and not on how the political relations of the two countries.