ah, next on d, w story that people the world over information. they provide the opinions they want to express d, w on facebook and twitter up to date and in touch. follow us with a total economic and financial war. that's how the french finance minister put 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 i'm 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 economy 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 can't anymore quicker. sick with her nip in the morning was just reassuring those implants of business as a business man. i am looking at the faculty. yes, 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 last alonzo numbers. and for those richard 0 to the queue observes through order 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 yet in the office, you can only put on certificates garsetser, such 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, whose president is worried. that stupid had sent them a good over the parameters for the russian economy have changed fundamentally. the latest sanctions have fled to a radical correction and foreign exchange rates. 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 of, but the xanax finance of his steadiness. 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. and the 10th economic situation has russian, president, putin worried to he has called the western block in the 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 off 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, i 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 golfer. well, she's a senior research fellow at the german institute for global and area studies. welcome to d. w. julia, do you believe that sanctions will help stop this war?

so thanks are usually pretty different goals and why doesn't need to force behavior change. and that's we get, 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 king was the nation of international law. and the thing that has 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 in the consent. the been on the

technology from the you and to russia. but we have seen some pretty slips, immediate consequences, the river left about a 4th of swelling you and we also see ordinary russian king to withdraw the money we will probably see. right. and then there's some really drastic economic consequences. rational mode. so how do you evaluate the impact of the sanctions that they have already been having? so i think they have, as i said, quite remarkable. it can be consequences also compared to the sanctions that we saw in the context of the premier prices. 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 recruit sanctions and the constantly holding have different time horizons and the impact of sanctions is usually more midterm. whereas the current question responds, that's 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, let's call a solution, or a military goal is achieved? not necessarily this even further measures in terms of sanctions grids. so the fries, the russian central bank essence is already remarkable. and it seems that current measures have him almost 80 percent of the rational banking assets. but the pension could and the transactions related to the ex or the ration gap and not completed

by the thing yet. so that is that too often for the escalade, the current sanction. so there's some potential and leverage that you've got as well. that is something that germany in particular is shying away from at the moment. jury, let me ask you, western companies are pulling out of russia. b, p, and 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 implement such comprehensive sanctions like the ones that we currently observe on any kind of russia without turning off the dress degree progressions 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 cabinets based 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 his 45 employees. some top

customers are in russia, but the sanctions resulting from russia's invasion of ukraine complicate business of your market. we're 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 some folks 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 newburg, a foreign trade expert at the regions, chamber of industry and commerce, believe that hundreds of millions of euros and sales have already been last year due to the sanctions falling rushes annexation of crimea, and 2014. today,

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. many companies have established a subsidiary in moscow or in other russian regions, especially in the metal processing sector. and from there they were active in the surrounding regions of year. the money done applied into you and i was company ceo janski's holstein does not believe that the plan new sanctions will really hurt russia. at least not as far as trade is concerned. as 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. so others would just fill that gap out. put up with 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 sanctioned 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 as like any other here in lou 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. fit in 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, dream to job along our i, it's a fight in augustine. in flight, the nor tree wanted to landfall facilities are into mean. the 1st pipeline has brought one and a half to 2000000 euros of tax revenue annually entered the resorts coffers the

past 11 years. but now pro russian sentiment in the bean is crumbling in it. 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, 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, almost other getting bigger for 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 we have to pay for all this. he

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 considers north dream one a certainty. 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, we will and up with a lack of money to finance our projects. in the good 15 it's young to project and hope had faded. tiny lou me now suddenly finds itself in the midst of saber rattling between moscow. give berlin and washington. let's take a closer look at what this means for europe and its energy security with karen patel. she is a professor for economics and had of the for center for energy,

climate and resources in munich. welcome to d w. karen. what if president pudding were to use energy as a weapon and cut gas supplies to europe? i mean, in the, in the short term, i don't think much would happen apart from rising prices. i mean, that is still a threat that is out there. but the longer basically he is delivering, he is exporting fossil fuels, especially gas, be less problematic. the situation becomes because winter is progressing. the real problem would occur next winter because we would have to fill our reserves in the summer. it would feel the gap in the winter the entire winter. so that would be the real problem. europe and germany in particular say, energy sources need to be diversified away from russian fossil fuels. how

quickly is that possible? i mean, what is possible is to some extent to increase the imports off l n g. although there is capacity limits with respect to those imports, there's currently only some limits or some limits on not reached in the south of europe. and then it's of course, always the option to re fire up on to reuse more coal to potentially in germany. let the last remaining nuclear power plants run longer. but the long run option really is to go for a faster expansion off of renewable energy and a decrease in demand for energy efficiency measures and the like. and which one do you think is more likely, amid this situation of crisis right now? at the moment i'm like i said everybody is mainly concerned about next winter. so the aim will be to actually fill up the gas tanks in the summer. and to assure that

for example, ellen g, but also pipeline gas is route to germany. so trying to get the contracts in advance, in the medium term, it's going to be the renewables expansion combined with. and that will be the good question because we were counting on natural gas. and so one option would really be that if russia is not exporting in the long run, that gas prices, higher gas prices would actually, ex elite, an expansion of the l n g capacities. and that is already happening. it might just increase and paste and diligence comes at the price of the price or, and dealing with this with the short term demand that, that, that might have to be bridged a when it comes to moving away from, from a russian fossil fuels. where is l n g liquefied natural gas going to come from? i mean there is, of course, a number of sources cut off among them the u. s. australia. so there is already

a number of for quite some allergy capacities out. there is just so far. asia is in pay, importing, the bulk of it and the capacities in europe in comparison are relatively small. and karen, as this conflict is nowhere from being resolved right now. and obviously there are a lot of issues at stake here. outline for us, your vision of how energy security will, will be managed in the coming years. i mean, in the coming years i would say ok, press the button on the renewables because this has been lagging in germany, but that has been the aim all along for last year. and then combine that with a more diversified and secure energy, especially energy input that would require on the one hand, of course, for example,

building new terminals in germany, but also other locations, but also improve the connectivity within europe within the gas grid. because so far, i mean there's capacities free in spain as just the question, how to get it to the places where it's needed. karen patel of the for center for energy climate and resources and munich. thank you for talking to us. thank you. russia has not only a major supplier of energy to the global market, it's also the world's largest exporter of wheat. and one of its most important customers is turkey. the country that has been grappling with its own economic crisis for months now people in turkey have been suffering from high inflation. and now many people fear already high prices could rise even further. the opposition is taking advantage of the bad mood people in istanbul can vent their anger on mobile posters. if you're not in line for gasoline,

you're in line for subsidized bread they say, or give us back our youth inflation rows by almost 50 percent in january compared to the same month last year. more and more people fear for their livelihoods. but what we used to buy for one layer and now costs 3 layers. what we used to buy for 10 years is 30. there is now. in other words, people can no longer afford to buy food and bread. me let alone shopping and traveling ally food is so expensive because turkey has to import a large part of its needs. it's most important supplier for grain is russia. the city when they talk about relations with russia, that we usually think about weapons or energy yet, but much more significant is that turkey is very dependent on the russian agricultural market, especially for wheat, barley, swabbing sunflowers. cornwell,

we buy everything from russia, with room to go to move. ukraine is also one of the world's largest wheat growers. now there's fear that the pressure on prices will increase further due to rushes, ongoing invasion. and this at a time when many in turkey can only afford state subsidized bread from all its calls over to istanbul, andy w correspondent, julia hon. his report. you just saw julia if the situation with russia is so difficult, and prices are likely to rise further. could turkey get its grains from other suppliers? well, turkeys, agriculture, ministry recently said that it does not expect grain supply shortages due to the conflict and that it could turn to other sources. but if you look at the figures, russia and ukraine together account for nearly 80 percent of turkeys, wheat imports. and right now it's unclear if these 2 countries will and can continue to supply. and at which cost,

even if other global suppliers like canada or the u. s. would step in, it's likely to get more expensive because of rising transportation and energy costs . i'm experts here in turkey. economists tell me that they do expect for the price hikes for basic goods, especially for bread, but also for gas and oil. so the consequences for turkey's already ailing economy could be quite severe. skyrocketing inflation has already caused a lot of anger and despair. and now the war could actually add pressure to already existing problems. julia target president a receptor about, along is warping us in line here is out of a noodle. remember country of the same time, turgeon as economy are heavily dependent on its ties with russia. well, take a show president edwin has developed close economic and political ties with both russia and ukraine in recent years. and yes, that has put him in

a delicate position where we see him now trying to balance his commitments toward the ukraine. a turkey thought. com, the trains to the ukranian government are they also a ne, announced new trade deals with on the other hand, it ties to moscow. and now turkey and russia have a considerable trait. volume worth nearly $35000000000.00 us dollars last year. turkey depends on russian gas on russian tourist as well. russia has invested $20000000000.00 us dollars in a nuclear power plant here in turkey. so add on, can't afford to fall out with russia economically. and i think that to large extend, explains his political balancing act. and drew a ruling from the shark of masters economic losses due to the crone of ours condemned turkey was optimistic that its economy would bloom for its tourism sector this year. but now struggling under the russia ukraine conflict, how well no other country has been sending more tourists to turkey,

then russia, nearly 5000000 people last year. ukraine actually ranks 3rd with about 2000000 people after a germany. turkey heavily relies on foreign currency inflows, but now a turkish tourist, tourism associations and agencies are worried are afraid that people won't come ukrainians for obvious reasons, but they also fear that russia's president putin might announce another a travel band for russian tourists to turkey or that payments due to the swift sanctions against russia, international payments are, are difficult or nearly impossible. so the tourism industry really fears great losses. we're talking about several 1000000000 us dollars. there is a lot at stake for the turkish tourism sector. d. w. corresponded to johan in istanbul. thank you.

you've been watching a special edition of dw business, russia, and economy at war. the international response to russia's aggression has been swift and concerted. western powers are hoping, inflicting economic pain via sanctions will push vladimir putin to reverse, whose course it's all from me and the business team here in berlin. thanks watching . ah ah, with

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d w documentary on youtube. ah ah, this is the deputy news of live from per then us president joe biden vows resolve and confronting the challenge from vladimir poop. re the united states, america scan with cranium people throughout our history. we've learned this lesson, when dictators do not pay a price for their aggression, they caused more chaos. biden announces further measures to punish rochefort to attack on the crime.