Sanctions on Russia could drive up the price of key commodities – Quartz

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With Russian military forces still massed on the border with Ukraine, the US Congress is close to approving what one senator called the “mother of all sanctions” against Russia should it invade. The sanctions are likely to target Russia’s major banks. It’s a risky gambit to take against a country whose exports of fossil fuels, metals, wheat, and other key commodities are crucial to many global supply chains; Russia produces 43% of the world’s palladium, for example, a metal crucial for car engines.
Even without targeting those industrial sectors directly, analysts fear, financial sanctions would likely dampen exports at a time when supplies for most commodities are already constrained, inflation is rising, and prices are already high. Prices for several of Russia’s most important exports are already much higher than they were before the pandemic.
The threat of sanctions, plus ongoing diplomatic negotiations, may be enough to deter an invasion. But if not, the economic pain will be shared widely beyond Russia’s borders.
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