The Minister of the Economy acknowledged on Tuesday that the drastic sanctions against Moscow will not be without consequences on French companies.
Le Monde with AFP
The purpose does not suffer from the beginning of an ambiguity: “We will provoke the collapse of the Russian economy,” said Bruno the Mayor, Tuesday, March 1 on FranceInfo, at means of Western economic sanctions imposed in response to the Russian invasion in Ukraine. “The economic and financial force report is totally in favor of the European Union, which is discovering its economic power, said the Minister of the Economy. We aim for Vladimir Putin, we aim for the oligarchs, but we aim Also all the Russian economy. “
All Russian assets that the Allies will freeze represents “almost $ 1 trillion”, said the minister, who adds: “We will deliver a total economic and financial war to Russia”, after the next day. A massive increase in interest rates at 20% of the Russian central bank. “Russian foreign exchange reserves are melting up as snow in the sun and the famous Vladimir Putin’s famous Treasure of War is already reduced to almost nothing,” he said.
“The urgency is to raise the cost of the war for President Putin,” said the French presidency on Monday, considering that the sanctions already taken “do worse than President Putin had anticipated it”. The Mayor also said Tuesday that the Russian people would suffer the effects of sanctions “because of his leader”; “We do not know how to do otherwise,” he recognized.
Ruble Diving
Closing of airspace, gel of personalities or companies, questioning financial or commercial links … Europe and the United States in mind have multiplied the announcements in recent days to dissuade Moscow from continue his assaults on Ukraine. One of the last measures, the blockage of foreign currency assets of the Russian central bank held abroad, provoked a plunge of the Russian currency on Monday, while many people rushed to the bank to remove liquid. Urgent, Russia has banned its residents on Monday to transfer currencies abroad and obliged Russian exporters to convert a large part of their revenues to rubles.
On the question of collateral damage that this penalties train will have on the French economy, the minister acknowledged that “Europe may have a little more inflation, because perhaps the prices gas will increase a little “. The minister said he wanted to extend the tariff shield on energy prices beyond its scheduled term in June.
Concerning the protections made by the State, the minister has distinguished between households and businesses. “We made the decision to protect individuals. It’s the absolute priority,” he said. But there will be “no global tariff shield for all companies”. Those who will be supported will first be those who “consume a lot of gas and who are exposed to international competition,” he detailed.
“When I listen to the French and discuss with them, I see that they are perfectly aware that freedom has a price, that the defense of freedom in Ukraine has a price, that the defense of our values The most fundamental at a price, supported the minister. This price, we do everything with the President of the Republic and the Prime Minister so that it is the most bearable possible. “