on rain forest indigenous peoples or down briefly opposing them because it's not only the earth's green ones that are going with a long term report from the heart of brazil, stuart to march 9th on d. w. and ah, a total economic and financial war. that's how the french finance minister puts western allies have had russia with a swath of economic sanctions over its invasion on ukraine. we'll take a look at what effect they've been having and what their limits. also coming up, oil and gas prices happen galloping industry heavy weights like b, p and shell are divesting of multi $1000000000.00 projects in russia. what will this conflict mean for europe's energy security?

will get an expert and will go to turkey, where people fear that clamping down on rushes economy could push already high prices. even for chris kolber. welcome to this special edition of d. w. a. business, russia, and economy at war. the international response to the russian aggression has been swift and concerted as of a broadcast sanctions include russia's exclusion from the international payment messaging service. notice swift restrictions on russian banks, asset freezes and travel bands as well as bard access to high tech. the full extent of the damage rushes war cannot yet be known, but western powers are hoping, inflicting economic pain will push president putin to reverse his course economic sanctions. and nothing new for russia, and yet most people here have no idea how big an impact the latest financial

sanctions will have on their lives and their families. the one, it's only early up and i can't even say much about it. most people are camped anymore for her sick with her new pretty money was just a young silica losing months of business. as a business man, i am looking at the factory years. i will likely have to work more for about what can you do? we'll have to live with this and just hang in there it is. what it is, not alonzo numbers. and for those richard, the door to the key observed her to come in yet. no. the sanctions won't hurt us much. we are simple people and don't have much in terms of savings. it won't hurt us, but it will hurt the economy. now go to the knox, you can only put on septic, especially since as evidence on the financial markets, the rubel dropped dramatically this week. the key interest rate has been lifted from 9 and a half to 20 percent. it's a drastic step for russia. central bank who's president is worried about steeper at

sent to look over the parameters for the russian economy have changed fundamentally . the latest sanctions have led to a radical correction and foreign exchange rates are also our access to financial reserves has been restricted. we will need to use a wide variety of monetary tools to guarantee financial stability for our country. but the xanax finance of his thankfulness analysts say the central banks, drastic measures are necessary, but they are also a risky bit. we'll talk rudy earliest you ross raising the interest rate so drastically could be too much of a burden for many businesses. they might become in solvent that could lead to higher unemployment and an economic crisis. a burglary as well. the tense economic situation has russian, president putin worried to. he is called the western block, an empire flies and has limited transactions from russia into foreign countries. he

has also ordered interest rates for personal loans to be kept stable. meanwhile, one of the country's most influential oligarchy, or licked airy pasco, has demanded an end to russia, state capitalism. other all the gars, including if jenny lieber, deaf and olive tink of have openly criticized the war against ukraine, put in is not used to such criticism from the business elite elizabeth murray river of this whole war scenario is a disaster for the entire economy. and for people personally, lab work in russia, of course, the government isn't calling it a war, but a military special operation for more or less bring enjoy a ga follow. she is a senior research fellow at the german institute for global and area studies. welcome to the w julia. do you believe that sanctions will help stop this war? so thanks are usually pretty few different goals and one of them did to forest

behavioral change. and that's again, i'm very skeptical though, because i feel that the current ration responses chiefly influenced by the situation on the ground and crane and also by the recent announcement of the in, due to deliver but off the different goals. they signal that the russian invasion of the king was the blend nation of international law. and the thing that have been very clear and very swift and they seem to constrain the vision financially and economically, which will have an impact on the russian behavior. in the mid long term. the french finance ministers, western sanctions, will bring about the collapse of the russian economy. is that likely? so a lot of the impact, the pensions usually unfold over time, the content, the been on the technology from the you and for us to russia. but we have

seen some pretty slips, immediate consequences. the rule left about a 4th of spelling you and we also see ordinary russian king to withdraw the money we will probably see, right. and then there will be consequences that rational mode. so how do you evaluate the impact of these sanctions that they have, right, even having so i think they have, as i said, quite remarkable, economic consequences also compared to the sanctions that we saw in the context of the premier crisis. despite these remarkable economic and financial consequences for the russian regime, i don't think they will for the russian regime and put into any behavioral change in the short term. because sanctions and the i'm constantly holding have different

time horizons and the impact sanctions. the usually more midterm, whereas the current russian responders really influenced by what's happening on the ground and ukraine. does that mean then, that in this conflict we basically need to wait out until a military must call a solution or a military goal is achieved? not necessarily. there's even further measures in terms of sanctions grids. so the fries, the russian central bank, is already remarkable. and it seems that current measures have been almost 80 percent of the russian banking assets. but the pensions could be through the x and the current, the transaction. that's related to the ration gap and not completed by the thing to get so that is that too often for the escalade,

the current sanction. so there are some potential and leverage by the year that the guy well, that is something that germany in particular is shying away from at the moment. julia, let me ask you, western companies are pulling out of russia. bpn shell, have abandoned multi $1000000000.00 deals. what will the toll of sanctions on russia be for company in the u and elsewhere? so it's impossible to, to implement such comprehensive sanctions like the ones that preparing on an economy like russia without turning off the dress degree professions for the german and the european economy. my, we should not forget about the repercussions of the, for the russian population. so there will be certainly financial side to off of the german institute for global and area studies. thank you. thank you.

can amik sanctions are taking their are tall on both sides, albeit in different volumes among the more heavily affected and you are companies in eastern germany. they see their traditionally close business ties with russia under threat. the final test run, the wire being wound up here is for producing springs that close valves in industrial plants. the measurements must be precise and the surface has to be very smooth. this specialized machinery produced by the cabinet spaced company, hazel shine, can produce steel, copper, and other wires. such a machine costs up to a $1000000.00 euros, and each one is custom built for buyers. this company is a market leader, but managing director, yann's casual stein doesn't know whether he can keep all is 45 employees. some top

customers are in russia, but the sanctions resulting from russia's invasion of ukraine complicate business. obamacare were currently preparing a contract with several 1000000 euros over the next 2 years soon if the contract and not be fulfilled according to the current terms. we will, of course, need or have to look for alternative customers. we're going that will take time. it will lead to a cut and working hours, and in the worst case scenario to layoffs, given phase one from snowflakes in buffalo. the medium sized company keys will shine is not an isolated case. in the eastern german city of cabinets, formerly karl marx, dot many companies have longstanding business ties with russia. christoph, to burg, a foreign trade expert at the regions chamber of industry and commerce believes that hundreds of millions of euros and sales have already been lost here due to the sanctions falling rushes annexation of crimea, and 2014. to day putin's war could bring trade with many former soviet republics,

such as georgia to a standstill. because russia actually has a central distributor function. and many companies have established a subsidiary in moscow or in other russian regions, especially in the metals processing sector. and from there they were active in the surrounding regions of year, the moon in the of wide or slowed into the urinals company. c o. janski's holstein does not believe that the plant new sanctions will really hurt russia. at least not as far as trade is concerned. has been with us, we have asian competitors there who then would just bridge a gap in the market and that would lead to cuts in our business. here is crazy. so others would just fill that gap could pop. who do you? yann's keys or stein is certain that the only complete exclusion of russia from international payments systems can really put pressure on the autocrat vladimir

putin. now, when it comes to hitting russia where it hurts the oil and gas sector represents an outside just target. although sanctions so far have largely spared these key industry, however, international energy giants are taking it upon themselves to review their business activities and russia with some packing it in altogether. oil jane shell is ending its corporation with gas prom and t. oil and gas projects worth about $3000000000.00 from black shells. decision follows a similar move by b p, which said it would abandon it's nearly 20 percent stake and rushes state on rosin f, resulting in ahead of up to $25000000000.00. meanwhile, in germany, the government has officially slammed the brakes on north stream to the under c pipeline. that was to take russian gas to the baltic sea to germany. the already

controversial topic has become toxic, which also means those that had been banking on its operation need to readjust, like in lieu mean in the north east of germany. no day is like any other here in lieu mean. what the mayor long feared would happen, has now become a reality. germany, it's put the certification process of the completed nordstrom to gas pipeline on hold on route to his office. ox or folk drives past the pipeline. so close to going online, but now it's future is unclear. sitting on the, on the one hand, we are concerned about, there's an escalation in ukraine and put on the other hand, the fruits of years of work are now in question when it comes to ne dreamed to along our fight in augustine in flight. the twisting, the north stream one and 2 landfall facilities are in the mean. the 1st pipeline has brought one and a half to 2000000 euros of tax revenue annually into the resorts coffers the past

11 years. but now pro russian sentiment in the bean is crumbling in on that, we believe that any forms of violence that violates international or state law or human rights is never acceptable. diplomatic solutions must always be sauce. and i strongly believe in that, i hope that if not before guns thought, 1200 kilometers some natural gas pipeline through the baltic sea. and here a real dimension for such a small place. the almost other beggars we were all really looking forward to it such a shame, let's hope that reason will prevail and an agreement can still be reached. if one's alternate, we shouldn't lose control. we can produce or develop our own things because no matter most care has to be a means of exerting pressure. but we've been misled. we have to pay the price. how much extra do we have to pay now? yeah. how expensive is natural gas and how much, what we have to pay for all this,

tell you i've got a list of times. the unpaid mirror is a lawyer by profession. he's come to the town hall to attend a meeting on the budget. as a precaution, he didn't include any revenue from nurturing to in the budget, and he no longer considered north stream one a certain t. you can go everybody in the smoke. we will have to talk about whether we should postpone some projects or maybe reconsider or delay them. and so we can be sure that in the event that energy sanctions are imposed, that we won't end up with a lack of money to finance our projects and a good fit for your household future. tiny lu, me now suddenly finds itself in the midst of saber rattling between moscow, keys, berlin, and washington. let's take a closer look at what this means for europe and its energy security with karen patel.