Current Events & Trends: The global economy and Russian sanctions

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The global economy and Russian sanctions

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Russian President Vladimir Putin’s plan was to keep Russia’s export goods from leaving its borders, hunker down and take the sanctions on the chin. What couldn’t be planned was the price of oil. Russia exports a lot of oil, and the country was coasting along, sanctions and all, when the price of oil was high. Recently, however, as you may have noticed

at the pump, oil prices dropped—to around $75 a barrel. This is when Russia began to feel the blow.

The Economist states: “The immediate worry is the oil price. Mr Putin is confident it will recover. But supply seems set to increase, with OPEC [the Organization of Petroleum Exporting Countries, including states in the Middle East, Africa and South America] keen to defend its market share. American government agencies predict oil prices could average $83 a barrel in 2015, well below the $90 level Russia needs to avoid recession” (“Russia: A Wounded Economy,” Nov. 22, 2014).

The economic system of the world at times seems very stable, and at other times seems to be teetering on the edge. The truth is that the world economy is all very interconnected and shaky. Little movements here or there can impact national economies for years. The Russian example is still playing out, but we can see how sanctions can affect a country.

God’s coming government and global economy will be stable, just and true. Look to the pages of your Bible and see what God has in store for His coming Kingdom. (Source: The Economist. )

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