What the Ukraine crisis will do to the Middle Eastern economy - Your Middle East

What the Ukraine crisis will do to the Middle Eastern economy - Your Middle East:



"In the aftermath of the tragic plane crash of MH17, where 289 people tragically and senselessly lost their lives, the US along with the European Council have declared more severe sanctions on Russia targeting the oil sector, defence equipment and sensitive technologies. Earlier in the month, the political crisis in the Ukraine had already made headlines and led to the West taking up a strongly supportive stance in favour of sanctions by enforcing an asset ban and travel freeze on selected Russian officials and fast-tracking $1 billion USD in aid to Ukraine.



It was already prior to the tragic incident that targeting Russian industries with larger and more powerful sanctions would be ‘disruptive to the global economy’ and that more severe sanctions would deepen Russian isolation. These consequences have now materialised and they are likely to present implications for the Middle Eastern economy.



The reasons for this are three-fold. While Gulf States including Saudi Arabia, Qatar, Kuwait and the UAE generate almost all of their income from the sale of hydrocarbons, sanctions on Russian oil imports by the USA and EU will initially translate into a huge price hike for Middle Eastern oil exporters."



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