China News Service, March 15 (Reporter Meng Xiangjun) Since the conflict between Russia and Ukraine, Western countries led by the United States have imposed extensive sanctions on Russia, but it is Europe that is crying out for pain!

　　Foreign media pointed out that investors fled the European stock market at the fastest rate on record, and the economic growth forecasts of major European economies such as Germany, France, and Italy in 2022 have been reduced. Among them, Germany's economic growth rate may be "halved", a loss of more than half.

　　Inflation rate in some euro zone countries may rise to 7%, energy prices have soared, heating and electricity have become "luxury products", fuel costs for motorists have skyrocketed, and daily food such as rapeseed oil and bread have become more expensive.

Unlike the United States, in this sanctions war, Europe has instead become "the loved ones hurt, and the enemies unhappy".

On March 8, local time, in the city of Sumy, Ukraine, people were evacuating.

[Western sanctions will be added again]

　　On March 11, the Group of Seven (G7) led by the United States announced that it would end normal trade relations with Russia and cancel the permanent normal trade relations treatment with Russia, that is, "most favored nation treatment".

This would allow G7 countries to raise tariffs and set quotas on Russian goods.

　　The G7 countries also agreed to deprive Russia of any financing opportunities from international institutions such as the International Monetary Fund and the World Bank.

Russian tycoons, business elites, executives and lawmakers of the central bank and other key financial institutions have all been targeted.

　　Previously, the United States, the United Kingdom, Canada and other countries have successively banned the import of Russian oil and natural gas. After some struggle, Europe and the United States also kicked Russia out of the SWIFT system.

A series of multinational companies have announced their departure from the Russian market, covering logistics, film, digital equipment, clothing, e-commerce and other industries.

On March 3, local time, in the Kharkiv region of Ukraine, Russian troops were distributing humanitarian aid.

　　Biden's previous statement that he would make Russia a "untouchable on the international stage" is a real move from the point of view of his actions.

A bipartisan coalition of lawmakers in the U.S. Congress has introduced legislation calling for the suspension of Russia's World Trade Organization (WTO) membership.

　　As far as the new sanctions are concerned, in terms of imports, Russian vodka, seafood and diamonds have been rejected by the United States; in terms of exports, luxury goods such as high-end watches, cars, clothing, wine, and jewelry will no longer be supplied to Russia.

European Commission President von der Leyen believes that the new measures by the West will cost Russia billions of dollars in export revenue.

[Russia counterattacks and warns]

　　International Monetary Fund (IMF) President Georgieva said on the 13th that sanctions limit Russia's ability to obtain resources and repay debts, which means that Russia may default.

She also pointed out that the bank's total risk exposure to Russia is about 120 billion US dollars. Although this amount is not small, it "has no systemic impact" and will not cause a global financial crisis at present.

　　Georgieva also pointed out two major consequences. First, the sanctions have had a "serious" impact on the Russian economy and will trigger a deep recession in 2022; second, the current situation will be dependent on Russian energy. Neighboring countries of supply have significant spillover effects.

On March 1, in the business hall of a local bank in Moscow, customers were waiting for business.

Photo by China News Agency reporter Tian Bing

　　Nearly half of Russia's total international reserves - about $300 billion in gold and foreign exchange reserves - have been frozen.

Reuters described Russia as facing "the worst economic crisis since the collapse of the Soviet Union in 1991."

Russia's central bank had previously more than doubled interest rates to 20 percent and imposed broad capital controls.

　　Russian Finance Minister Siluanov said that although there are problems in repaying foreign debts, Russia will not give up its obligations.

On the 7th, the Russian government announced a list of countries and regions that are "unfriendly" to Russia.

For the "listed" countries and regions, Russia still intends to repay its debts to them - not in dollars or the like, but in equivalent rubles.

On March 10, local time, Russian Foreign Minister Sergei Lavrov and Ukrainian Foreign Minister Kuleba held talks in Antalya, Turkey.

　　Russian Deputy Foreign Minister Vershinin said on the 14th that Moscow will not ask the United States and Europe to lift sanctions, and Western pressure will not change the course Russia is going to take.

Sanctions "are illegal in the first place and unworkable in the second," he said.

　　In retaliation, Moscow banned the export of telecommunications, medical, automotive, agricultural, electrical, technological equipment, and some forestry products.

On the oil and gas issue, which is crucial to the country's economic lifeline, Russia has not cut off the "trachea" for exporting to Europe.

But Russia has warned that the abandonment of Russian oil and natural gas by the West will have catastrophic consequences for the world market.

[Sanctions war makes Europe cry]

　　Not only Russia, but also American media and some think tanks, such as the New York Times, have issued similar warnings to the West.

　　The New York Times pointed out that as Russia has been cut off from buyers, Russia's energy exports have begun to slow down, and fossil fuels will become scarce globally, which is expected to hit Europe hard.

Germany and Austria import more than half of their natural gas from Russia, and some Eastern European countries use almost 100% of Russian natural gas.

The German public's energy bills are expected to rise by two-thirds.

Data show that the price of natural gas in Europe once rushed to more than 3,900 US dollars per thousand cubic meters.

European natural gas prices hit a record high, with data showing that on March 7, 2022, the price reached $3,903 per thousand cubic meters.

Image source: Screenshot of the Russian Satellite News Agency report.

　　European governments have to pay for large-scale energy subsidies, with France providing 15.5 billion euros, Italy 5.5 billion euros, Poland 2 billion euros, and Austria 1.7 billion euros.

But the New York Times argues that the West's resilience may not last long.

　　On March 11, the EU Versailles Summit decided that Europe will propose a plan to get rid of its dependence on Russian gas, oil, coal and raw materials after five years, and to coordinate Europe's currently decentralized natural gas inventories, so that underground natural gas inventories will be stored in October every year. Fill at least 90% before 1 day.

　　But the reality is that EU countries rely heavily on Russian energy, and Bulgaria has warned that all its energy comes from Russia, and immediate withdrawal is not an option.

Even as the richest EU member state, Germany cannot immediately "seize the seat", and German Chancellor Scholz admitted that the EU sanctions on Russia "intentionally" circumvent the energy supply problem.

Data map: A petrol station in the UK closed after running out of fuel.

　　Unless European countries radically redesign their infrastructure for importing natural gas, or undertake what may be the fastest transition to renewables in history - both technically feasible but costly - they could be ready for next winter continue to face the crisis.

　　In addition, Europe is facing a second wave of energy crisis, steel mills, fertilizer plants and paper mills are cutting or closing production.

Bread and other baked goods prices also rose due to supply chain disruptions in Russia and Ukraine, two major wheat-producing countries.

"European Times" reported that Germany's 10-liter canola oil rose from 11 euros to 24.5 euros per barrel, and some supermarkets began to limit purchases.

In Rome, Milan, Florence and other places in Italy, panic buying occurred, and food shelves in large supermarkets were emptied.

Data map: German bakers sift flour.

　　According to research released by the German Institute for Labor Market and Careers (IAB) recently, the conflict between Russia and Ukraine may reduce Germany’s economic growth rate by 2 percentage points in 2022, and reduce it by more than half.

The latest forecast from the German government in late January put growth at 3.6 percent this year.

　　Reuters pointed out that investors fled European stocks at the fastest rate on record, and emerging-market bonds also saw their biggest outflows in two years.

Globally, investors poured $2.4 billion into gold, pulled $1.4 billion from stocks and $13.2 billion from bonds, according to a Bank of America report based on EPFR data.

　　And the United States harvested European capital.

[The "double-edged sword" hurts the interior of the West]

On March 11, local time, French President Emmanuel Macron attended the informal summit of EU leaders.

　　"There will inevitably be political rifts within the West," said Jeremy Shapiro, research director at the European Council on Foreign Relations. "We don't know from opinion polls how people actually react to economic hardship and large numbers of refugees."

　　Western leaders must keep "the 20 or so disobedient democracies together" and convince people from Canada to Bulgaria that the sacrifices for soaring energy prices are worth it.

And this may just be the beginning of the economic shock, the New York Times said.

　　The EU and the US are not without strategic suspicion and divergent interests.

Singapore's "Lianhe Zaobao" pointed out that Europe does not want to be overly dependent on the United States for security and energy in the future and become its vassal, which is a fragile aspect of the relationship between the United States and Europe.

US President Biden.

　　The American "National Interest" magazine also published a commentary article pointing out that the United States and all Western countries must reconsider their attitude towards Moscow and realize that they have taken "hasty and uncoordinated" actions against the Russian economy.

　　The US and the West seldom consider its legitimacy, logic or even strategic consequences, the article argues.

In the long run, the international community will also face secondary consequences such as the Middle East issue, the food crisis, and the intensification of refugee flows that may lead to the "collapse of the global system."

In addition, Western companies have left almost no way to return to the Russian market, which is considered a huge omission.

　　There are too many losers in this dispute, which began with the US "confrontation" and NATO's containment of Russia.

Ukraine's dream will not wake up, Russia has paid the economic and geopolitical price, Europe has become more divided and tense, and the world economic recovery and global order have been impacted.

　　Amid the turmoil, there seems to be only one overall winner—the United States across the Pacific.

(over)