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News Article

Mexico Will Not Impose Economic Sanctions on Russia

By Sofía Hanna | Thu, 03/03/2022 - 12:38

Mexican President Andrés Manuel López Obrador said that Mexico will not impose economic sanctions on Russia following its invasion of Ukraine, despite the EU, the US and other countries doing so. Through sanctions, these countries have limited Russia’s ability to use foreign currencies such as dollars and euros. 

 

"We are not going to impose economic sanctions. We want to have good relations with all the governments of the world and we want to be in a position to be able to talk well with the parties in conflict," said López Obrador. He also criticized the “censorship” of Russian state-sponsored media by social media companies, according to Reuters.

 

Economic sanctions were also taken by Switzerland, which had historically remained neutral, and Japan. This type of sanctions can help avoid direct military conflict, said a Vox report. This tool can shock a country’s economy by limiting its access to financial resources.

 

Russian citizens are being impacted by these economic sanctions and the country has already doubled its bank interest rate in an attempt to stabilize the ruble after the currency sank against the dollar. According to Vox, “the new sanctions do allow certain Russian banks that handle oil and gas exports to continue transactions in an attempt to limit the impact on European energy consumers.”

 

According to S&P Global Ratings, “the invasion has, beyond the human cost of the conflict, roiled financial markets and driven oil prices higher—and there could be profound and protracted effects on macroeconomic prospects and credit conditions around the world,” as reported in MBN.

 

Besides imposing no sanctions, Mexico will also not close its airspace to aircraft from Russia or Ukraine and not end diplomatic relations with any country. The president also stated that Mexico is prepared for any type of economic repercussion that may come from the conflict.

The data used in this article was sourced from:  
Reuters, Vox, MBN
Photo by:   GOBMEX
Sofía Hanna Sofía Hanna Journalist and Industry Analyst