Ukraine Crisis Challenges Puerto Rico Economy
Banning of Russian Oil, Commodities Could Lead to Stagflation
Puerto Rico faces formidable challenges to its already precarious economy as it braces for the effects of severe sanctions imposed by the United States on Russia, a major exporter of petroleum products and other commodities.
In response to the Russian invasion of Ukraine, which began late last month, U.S. President Joe Biden implemented measures that would effectively end trade with the Eurasian country, including ceasing imports of oil, food, fertilizer and metal commodities, and freezing of the assets of the Russian central bank. The military operation also disrupted Ukraine exports of wheat and other key food products.
The crisis has pushed the price of a barrel of oil from $65 in December to more than $100 this month, while the price of natural gas and key metals exported by Russia, such as nickel, which is used for batteries, cellphones, medical equipment and power generation, also increased.
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