1St write up its connection to a specific topic of international business

Each student will write total 3 News Write Ups. News Write Up is a
short (about 500 words) description of a current event (no more than 3 months
old) related to any issues of global business issues. It should contain the
following:
1) Very brief description of the event or the news (about 150 words)
2) Its connection to a specific topic of International Business (about
150 words)
3) How can we (students) benefit and/or learn from it (about 200
words)
4) Provide the source of the article and/or its Internet link
_________________________________________________________
1.
The European Union (EU) is imposing its toughest sanctions against
Russia, including a Russian oil embargo and a prohibition on insurance
companies providing contracts for Russian tankers. This move is expected to
create new challenges for Russia's budget and economy and significant losses
for Europe and the rest of the world. At the May 30 summit, the leaders of the
EU's 27 member states agreed to gradually reduce Russian oil imports over
the next six months, with the start of an embargo on most Russian oil imports
into the EU expected by the end of this year. Furthermore, the EU prohibited
insurance companies from selling insurance to Russian tankers worldwide. As
a result, because European insurers provide contracts for much of the global
oil trade, Europe will make it difficult for Russia to sell oil to customers in
Asia. These sanctions are more challenging than expected as part of the EU's
sixth package of sanctions against Russia over Ukraine.
2.


Ending Europe's decades-long reliance on Russian oil poses a
significant challenge, forcing countries in the region to seek new sources of
supply. This situation will raise global inflation and exacerbate gasoline

shortages in poorer countries competing with Europe for oil. As of June 1,
Russia had cut off gas supplies to five EU countries, including the
Netherlands, Denmark, Poland, Hungary, and Finland, after these countries
refused to pay for Russian gas in rubles at President Vladimir Putin's request.
However, according to a report released on June 13 by the Finland-based
Center for Research on Energy and Clean Air, Russia made $98 billion from
fossil fuel exports in the first 100 days of the Ukrainian conflict with the EU
being the largest importer (Day, 2022). Suppose Russia "closes the gas valve"
to the rest of Europe. In that case, it will cause significant harm not only to
Russia and Europe but also to the rest of the world because fuel prices could
spiral upward, pushing the global economy into stagflation - with high
inflation and slowing growth, if not a recession.
3.
Russia may have set a record for energy export revenues this year, but
nothing can guarantee that figure when EU oil import bans and reduced gas
purchases take effect. Russia can be seen actively seeking customers,
changing modes of transportation, and expanding its export market share in
Asian and Middle Eastern countries. Nonetheless, the "pivot of energy
eastward" strategy will take years to implement as Russia faces higher
logistics costs to deliver to new destinations. The Asian market is unlikely to
replace the European market entirely, but it will surely provide a partial
replacement (Russell, 2022). However, in the long run, the Russian energy
industry must consider the factor in the energy transition era when planning
the country's economic and fiscal strategy. The conflict between Russia and
Ukraine has caused the economies of Russia, the EU, and the entire world to


face numerous challenges, including energy and food crises. Europe faces an
increasing risk of economic recession, and energy is the continent's "Achilles
heel." Furthermore, Russia's export revenue could suffer significantly if the

EU "boycotts" oil and gas. If a peaceful solution to the hostilities is not found,
it is clear that the competitive endurance rivalry in terms of economic loss
will continue.
4. The article’ link
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References
Day, C. (2022, June 14). Explained: How Russia earned $98 billion from fuel exports in
first 100 days of Ukraine War. Firstpost. Retrieved October 22, 2022, from
/>Russell, C. (2022, April 11). Column: Asia unlikely to rescue Russian coal amid Europe
ban. Reuters. Retrieved October 22, 2022, from
/>