The sanctions from the United States and its allies just keep on coming, and it’s the Russian people who are suffering far more than the man responsible for all the misery in Eastern Europe.
Vladimir Putin surrounds himself with a legion of sycophants and security, completely isolated from the world as his country is falling apart from the inside. Joe Biden announced Friday the U.S. would suspend normal trade relations with Russia, which means a ban on seafood, diamonds, and vodka. Congress has to approve the move, but that’s likely to happen.
Biden also is signing an executive order that stops exporting luxury items to Russia, including clothing, jewelry, and cars.
One thing to keep your eye on is the airline industry in Russia. Most rational free countries have banned Russian planes from their airspace, but the problems will be more severe for the companies inside Russia that keep the airline industry going. The sanctions imposed by the U.S. and the European Union ban Boeing and Airbus from supplying spare parts and maintenance support for Russian airlines. So, within a couple of weeks, the country could run out of the necessary parts needed to keep planes in the air.
The biggest airline in Russia is Aeroflot, and the sanctions mean they have been cut off from Sabre, which is a system that allows people to book tickets quickly.
A CNN report said leasing companies own 80% of the fleet of 900 commercial planes in Russia, and they have been ordered to repossess those planes by the end of March.
The airline industry is critical to the overall Russian economy because of its sheer size. The country is twice the size of the United States, so airlines are needed to move people around the country to keep the economy humming.
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