Will and/or how will the sanctions by the USA and the EU against Russia and vice versa affect the Dominican economy? Should/do we care?
- Thread starter jabejuventus
- Start date
Economic Sanctions
Economic sanctions seem to have helped force Milosovic out of office in Serbia, and they have caused Iran to come to the table. I don't see where the sanctions they suggest putting on Russia are likely to be more than a mild inconvenience.
The DR will not be greatly affected by this. Our commercial relationship with Russia is practically null. The only good thing Russia was providing the DR was an ever increasing amount of tourists and that's where the DR might feel it. On the other hand, the DR is quite far from Russia, so its possible that the average Russian tourist is of upper middle class or higher, the segments that are most likely to fare better in an economic situation as Russia is facing right now.
I believe that Russia is one of the top 3 oil producers of oil. Don't you think that barrel prices may go up and in this way affect already high gas prices here?
The price of oil might spike, but we have a sweet deal with Venezuela via Petrocaribe and this would probably help mitigate much of the negative effect.
The country is also moving away from excessive oil consumption. Within a few years 100% of our electricity generation is going to be based on hydro, natural gas, and coal in the process eliminating the plants that depend on oil and its derivatives (by converting them to natural gas.) The private sector is currently involved in producing this change and in increasing the production capacity and the hope is that the two effects will merge (cheaper cost for generating electricity and flooding the market with extra electricity) in order to cheapen the electricity and keep the lights on 24/7 on 100% of the circuits.
The country is also moving away from excessive oil consumption. Within a few years 100% of our electricity generation is going to be based on hydro, natural gas, and coal in the process eliminating the plants that depend on oil and its derivatives (by converting them to natural gas.) The private sector is currently involved in producing this change and in increasing the production capacity and the hope is that the two effects will merge (cheaper cost for generating electricity and flooding the market with extra electricity) in order to cheapen the electricity and keep the lights on 24/7 on 100% of the circuits.
All basically true except that the sweet deal w/Venezuela is doing damage to our debt balance so, as I see it, the advantage cancels itself out, and that natural gas is subject to spikes and increases also (Russia is top exporter of gas too). Can the natural gas alternative become less of a cost advantage in scenarios such as this one?
I have heard that natural gas must be "stabilized" (not sure what that means) before it can be shipped. Also, special tankers are required to transport it. I am sure that it requires special transporters: they are not going to ship it in home-sized gas tanks.
Russia uses pipelines to move its gas, mostly to Western Europe.
Russia uses pipelines to move its gas, mostly to Western Europe.
I'm thinking more in terms of increased cost. Also, I believe the U.S. has a gas deal w/the DR. How are they planning to deliver? Liquid maybe???????
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Do you really think Obama is going to do something....he has drawn the line in the sand before and what has happened: no nuclear weapon release, on and on.....I think he lives in his own little world, just like a little kid...if you cross that line I will take your gum...OOOH you scare me!
Besides the very last line, this is our foreign policy.
http://m.youtube.com/watch?v=zkzWyOaS8kU
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http://m.youtube.com/watch?v=zkzWyOaS8kU
Sent from my iPhone using Tapatalk
there are worse economic conditions than a debt balance. if the DR was buying oil on the open market, the best terms might be net 30, maybe net 60. that means dollars have to be accumulated every monthly cycle to pay the bill. that can do some serious damage to your exchange rate. just ask Hippo.
There might be two people on this board who think power will be on 100% of the time in all circuits.
As for the effect on the DR, minimal if any.