No Sanctions Hitting Russian Aluminum
Bloomberg reports Biden Team Will Hold Off on Russia Sanctions Hitting Aluminum
The Biden administration is holding off for now on sanctions against Russia that could disrupt global aluminum supplies, according to people familiar with the matter, as the market grapples with already severe shortages of the metal.
Russian-supplied aluminum accounts for roughly 10% of total U.S. imports, highlighting the negative impact that sanctions could have for the U.S. and allies who rely on the metal for everything from iPhones to automobiles and fighter jets.
It seems to me Russia has an easy answer. Stop aluminum exports.
What About Fertilizer?
Q: Hmm. That too. Anything else?
A: Unfortunately, yes.
- Russia’s invasion of Ukraine could further strain the supplies of semiconductor chips that have already caused global production disruptions for tech companies and automakers.
- Russia and Ukraine are critical suppliers of neon gas and palladium that are used to produce semiconductor chips.
- The White House earlier this month warned chip suppliers to diversify their supply chains in case Russia retaliates against threatened U.S. export curbs by blocking access to key materials.
- The price of neon shot up 600% the last time Russia invaded Ukraine in 2014.
What About Swift?
SWIFT is the international payment system. It would hurt Germany, a major trading partner of Russia.
Russia Stock Market Reaction to SWIFT
Stop Thinking Dictators Care
If the US wants to sanction everything that hurts Russia, then Russia has an equal if not stronger retaliation.
Putin undoubtedly thought this through in advance.
So expect severe shortages to get more severe.
And in case you missed it, please see What's the Real Background Story Behind Russia's Invasion of Ukraine?
This fiasco has it roots in Obama administration policy.
This post originated on MishTalk.Com.
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