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world news Dialuna 25 aPRil 2022

Sanctions hit Russian economy, although Putin says otherwise

(AP) — Nearly two “The government wants to — as a sign of sanctions hav-
months into the Russian- paint a picture that things ing an effect.
Ukraine war, the Kremlin are not as bad as they actually
has taken extraordinary are,” said Michael Alexeev, an — Moscow’s mayor says the
steps to blunt an econom- economics professor at Indi- city is looking at 200,000 job
ic counteroffensive from ana University who has stud- losses from foreign compa-
the West. While Russia can ied Russia’s economy in its nies shutting down opera-
claim some symbolic vic- transition after the collapse tions. More than 300 com-
tories, the full impact of of the Soviet Union. panies have pulled out, and
Western sanctions is start- international supply chains
ing to be felt in very real A closer look, however, have largely shut down after
ways. shows that the sanctions are container company Maersk,
taking a bite out of Russia’s UPS, DHL and other trans-
As the West moved to cut economy: portation firms exited Russia.
off Russia’s access to its for- — The country is endur-
eign reserves, limit imports ing its worst bout of infla- — Russia is facing a historic
of key technologies and take tion in two decades. Rosstat, default on its bonds, which distress, such as higher infla- because of the extraordinary
other restrictive actions, the the state’s economic statis- will likely freeze the country tion, a decline in industrial lengths the Kremlin has tak-
Kremlin launched some tics agency, said inflation last out of the debt markets for production and a slowdown en to prop it up. In addition,
drastic measures to protect month hit 17.3%, the highest years. in economic growth. its largest sector — oil and
the economy. Those includ- level since 2002. By compari- gas — is largely unencum-
ed hiking interest rates to as son, the International Mon- Meanwhile, Treasury officials “The things that we should bered due to European, Chi-
high as 20%, instituting capi- etary Fund expects consumer and most economists urge pa- be looking for to see if the nese and Indian reliance on
tal controls and forcing Rus- prices in developing coun- tience, saying that sanctions sanctions are working are, Russian energy.
sian business to convert their tries to rise 8.7% this year, up take months to have their full frankly, not easy to see yet,”
profits into rubles. from 5.9% last year. effect. If Russia can’t get ap- said David Feldman, a profes- Benjamin Hilgenstock and
propriate amounts of capital, sor of economics at William Elina Ribakova, economists
As a result, the value of the — Some Russian compa- parts or supplies over time, & Mary in Virginia. “We’ll with the Institute of Interna-
ruble has recovered after an nies have been forced to that will cause even more fac- be looking for the price of tional Finance, estimated in
initial plunge, and last week shut down. Several reports tories and businesses to shut goods, the quantity of goods a report released last month
the central bank reversed part say a tank manufacturer had down, leading to higher un- they are producing and the that if the European Union,
of its interest rate increase. to stop production due to a employment. quality of goods. The last Britain and the U.S. were to
Russian President Vladimir lack of parts. U.S. officials being the hardest to see and ban Russian oil and natural
Putin felt emboldened and point to the closing of Lada It took nearly an entire year probably the last to appear.” gas, the Russian economy
proclaimed — evoking World auto plants — a brand made after Russia was sanctioned could contract more than
War II imagery — that the by the Russian company Av- for seizing Ukraine’s Crimea Transparency into how sanc- 20% this year. Current pro-
country had withstood the tovaz and majority-owned by peninsula in 2014 for its eco- tions are affecting the Russian jections forecast a 15% con-
West’s “blitz” of sanctions. French automaker Renault nomic data to show signs of economy is limited, largely traction.

10 found dead after Japan tour boat with 26 aboard sinks

(AP) — Rescuers said that 10 peo- sinking. The location, near the Kas- from the sea, while others were
ple who were retrieved Sunday huni Waterfall, is known as a difficult The Transport Ministry launched washed onto the rocky coast.
from the frigid sea and the rocky place to maneuver boats because of an investigation into the boat’s op-
coast of a northern Japanese na- its rocky coastline and strong tide. erator, which had two accidents last An orange-colored, square-shaped
tional park had died, a day after year. The ministry said it was looking lifesaving float with the boat’s name
a tour boat with 26 aboard appar- There were two crew and 24 passen- into safety standards and the decision on it was also found near the rocks,
ently sank in rough waters, trig- gers, including two children, on the to conduct the tour despite rough the coast guard said.
gering questions why it was al- the 19-ton Kazu 1 when it ran into weather on Saturday.
lowed to sail. troubles while traveling off the west- Footage on public broadcaster NHK
ern coast of the Shiretoko Peninsula. The operator, Shiretoko Pleasure showed one of the victims arriving on
The search for the others is still on- The coast guard said the 10 victims Cruise, had been instructed to take a helicopter and being transferred to
going after the boat sent a distress call — seven men and three women — steps to improve its safety follow- an ambulance on a stretcher. Rescu-
on Saturday afternoon saying it was were adults. ing earlier accidents in which it ran ers held up blue plastic shields to pro-
aground in June without causing tect the victim’s privacy.
injuries, and another in May, when
three passengers suffered minor inju- The sightseeing vessel made an
ries when the boat collided with an emergency call early Saturday after-
object. noon, saying its bow had flooded and
that it was beginning to sink and tilt,
“We will thoroughly investigate what the coast guard said. Contact with the
caused this situation and what kind of boat had since been lost. The coast
safety oversight was involved to allow guard said the operator told them
the tour in order to prevent another that everyone on the boat was wear-
accident,” Transport Minister Tetsuo ing a life vest, but some of the victims
Saito, who visited the area Sunday, found were without them.
told reporters.
Average April sea temperatures in
Following an intensive search involv- Shiretoko National Park are just
ing six patrol boats, several aircraft and above freezing, which experts say
divers that went through the night, would cause hypothermia.
rescuers on early Sunday found four
people near the tip of Shiretoko Pen- “It’s a very severe condition especial-
insula and later six more in the same ly when they are wet,” Jun Abe, vice
area, about 14 kilometers (8.7 miles) chairman of the Society of Water Res-
north from where the boat sent a dis- cue and Survival Research, told TBS
tress call. Some of them were plucked TV.