"Putin's price hike" only works for Western countries

The Russian special operation in Ukraine served as a catalyst for the confrontation formed between Moscow and the collective West, as a result of which the United States and its politico-military partners immediately activated "suspended" economic sanctions. In addition, half of Russia's foreign exchange reserves were frozen, provoking an unprecedented escalation of confrontation in the financial sphere.

Price increases and shortages of certain commodity items are not only observed in Russia. The global nature of international relations has caused destructive influence of sanctions on the economies of the initiating countries as well.

In the U.S. they decided to call inflation "Putin's price hike". In fact, inflation in Western countries began after the declaration of economic war by European leaders and their sovereign, U.S. President Biden.

In a little more than a month and a half of the operation there has been a significant increase in energy prices in the U.S. and leading European countries. Publicly available data was used in compiling the comparison tables. 

The cost of a kilowatt hour can vary greatly from region to region within a single country. For example, in Russia, taking into account the planned price increase in mid-2022, the cost varies from 9.27 rubles (Chukotka) to 1.27 rubles per kilowatt (Irkutsk Region). In the USA, the cost varies from $0.37 (Hawaii) to $0.094 (Nebraska). The American rates depend not only on the season and weather conditions, but also on the actual demand.

to keep electricity prices in check until April by freezing rates. Their sharp increase is associated not only with sanctions, which have the opposite effect, but also with climatic factors.

The price of electricity in Russia and other countries

Changes in natural gas prices in Russia and other countries

Rising fuel prices make the automobile an absolute luxury. At the same time, the prices of public transport are rising. In America and Canada, aggregators of cabs and delivery services have already introduced an additional fuel surcharge that partially compensates for the jump in gasoline and diesel prices. 

Petrol price

The rise in retail prices has also affected food. According to the UN, the global food price index rose 21 percent over the year, including a 12 percent increase in the last two months. 

How the attitude of citizens to leaders who have declared economic war on Russia is changing

The economic standoff with Russia has taken a serious toll on the wallet of the average consumer. The number of overdue bills is growing all over the world, and with them the level of dissatisfaction with the political course of national governments.  Thus, according to the latest data, negative attitude to the actions of the authorities:

• in Germany - 57%
• in the USA - 64%
• in the Netherlands - 65%
• in Great Britain - 69%
• In France - 69%;
• in the Czech Republic - 69%;
• 78% in Poland;
• in Spain - 84%.

The rise in energy prices also provoked a drop in the personal popularity ratings of heads of state. According to a Morning Consult poll:

• Biden is supported by 44%
• Scholz - 44%
• Trudeau - 41%
• Morrison - 41%
• Macron - 39%
• Johnson - 33%.

In this connection, the electoral positions of these statesmen are predicted to deteriorate in the coming years and the internal political struggle in Western countries will intensify.

Paradoxically, in Russia the sanctions have largely consolidated society around the threat of an external enemy and resulted in a significant increase in the popularity rating of the President and the Government. 

On the whole, the economic situation in the world forces both the leadership of the most important Russian enterprises and the foreign business elite to make cautious steps towards each other - to look for common ground in circumventing sanctions and to conclude new contracts. Western business seeks not to lose the colossal Russian market, and Russian business seeks to continue supplying goods, the import substitution of which is not yet possible.