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?
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.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?
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.
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 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.
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.
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?
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.