One of the products that Latin America imports most from Russia is oil.
The price of gasoline in Mexico has managed to reach its historical maximum.
The increase in gasoline prices has a direct impact on basic basket products.
The dispute between Russia and Ukraine has led to various effects on the economyeven in the mexican.
On February 24, the president of Russia, Vladimir Putin, announced to the different media that he would change the course of history as planned, where after a crisis economical (still present) due to the arrival of the Covid-19 pandemic, a new “special operation” would begin, starting what we can see today as the invasion of Ukraineconflict that had been developing for some decades in the past and that will have high repercussions in the future.
The invasion of Russia to Ukraine has triggered all kinds of events, including a bombardment of fake news by the media, where users have proven to be the most truthful communicators in times of war thanks to digital channels such as social networks and Wikipedia (with their respective exceptions). ; however, there is an even stronger blow to consider, the brand attack.
The most important brands in the world, taking into account their high presence and a strong image to take care of, have decided to take sides in this dispute and sanction russia with a relatively simple action, but that would directly harm its economy, the cessation of activities.
Among some of the companies that have chosen to sanction Russia for its invasion of Ukraine, we can find Volkswagen, which announced the cessation of its production in the country; Microsoft, where its president himself reported that he would stop all kinds of sales to the Russian giant; Adidas, who stopped their contracts and unlinked all kinds of sponsorships related to the teams of the Russian Football Federation, as well as countless brands that are gradually joining this initiative and dealing a strong blow to the Russian economy.
Likewise, at the time Facebook showed its position on the situation and chose to block the monetization of Russian state media to prevent them from generating income, a fact where the Russian authorities chose to take the reins and block the social network in its country.
Bearing this in mind, the government of Vladimir Putin chose to create a black list with all the countries that were in favor of sanctioning Russia, both in their companies, economy and society in general, where even some would have already well contemplated what they will do with brands that decided to “abandon” the country.
This dispute between Russia and Ukraine has had a considerable impact in terms of figures in its economy it means; however, it will also have a direct impact on the mexican, which already begins to perceive it.
As a major organ in the global economy, Russia is in charge of exporting to Latin America a considerable number of products, among the most important, chemicals, metals, oil, coal briquettes, fertilizers, etc. It takes a few words to explain this, but how is it reflected in numbers? The first results are already beginning to be seen.
As a result of the conflict between Russia and Ukraine, the Mexican economy is already registering its first blows and can be seen reflected in the rise in prices at gas stations, where the increase in the price of Premium gasoline is notorious with a value of approximately 30.46 pesos, which could increase to 33 pesos in the next days (reaching its historical maximum).
To have a little more idea about what this entails, the specialist in Economics and Finance of the Banking and Commercial School (ETB), Ramón Martínez, commented to local media that:
“If crude reaches 130 dollars due to the negative impacts of the war, regular or Magna-type gasoline will rise to 26 or 27 pesos per liter; while the Premium will reach historical prices of 33.40 to 33.60 pesos per liter”, mentioned Ramón Martínez.
Likewise, the increase in the price of gasoline due to the conflict of Russia and Ukraine already affect the Mexican economy and in the food industry, since the EBC specialist commented that the increases reported by the INEGI show an increase of 1 to 15 percent in the cost of basic foods such as tortillas, beef, chicken, avocado and lemon at the end of the last february.
Given this, he anticipates a 25 percent loss in the purchasing power of families, so if you spent 100 pesos on food, now this will cost you 125 pesos, for the same products.
The 25% loss in purchasing power represents the worst setback for the pocket of Mexicans in 60 years”, mentions Ramón Martínez, a specialist at the Commercial Banking School.
In the same way, the professional mentions that there are some exits that could reach reduce this negative impact on the Mexican economyeither with programs to attract foreign investment, measures that boost the productive capacity of the economy, financing mechanisms through development banks and the reduction of imports of raw materials, fuels and supplies for the production of goods and articles , which currently represent 40 percent of GDP.
Although there are ways to “escape” this situation, how long do you think it would take to carry out these actions to avoid further growth of this historical economic impact?