Well-known Serbian ECONOMIST tells Telegraf: Trump's economic threats against Russia also harmful to Serbia

Photo collage: Tanjug/AP, Pixabay

After US President Donald Trump threatened Russia with new economic measures, Telegraf Biznis got in touch with Serbian energy expert and economic analyst Milos Zdravkovic in order to assess what effect these threats could have on the war in Ukraine, but also what consequences could be felt in Serbia.

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Zdravkovic pointed out that Trump's threats have limited power.

"So far, Russia has been under '16,000 sanctions', both from the US and the EU, but this did not prevent the war in Ukraine," he said.

Zdravkovic explained that the Russians see this conflict as an existential threat to their state sovereignty, while the West seeks to preserve its global dominance.

"Neither side is ready to give up," added the economist.

Attacks on the energy infrastructure in Ukraine represent a special problem, Zdravkovic noted.

"The energy system of Ukraine was designed and built during the USSR era, and they even have 700 kW power plants, but I think that about 150-152 power plants have been destroyed, so Ukraine could be left completely without electricity. They don't have to act that way. Obviously, someone has foreseen it," explained Zdravkovic.

He further stressed that the war is not of a humanitarian character, but one fought to establish dominance.

"All the western sanctions have been imposed: on technologies, markets, oil price restrictions. I doubt the West has the courage to do something more. On the other hand, I am not convinced that Russia can change its tactics and pivot towards destroying the population, which would be a completely different situation," he said.

The economist added that Russia has the support of the Global South, including India and China, which are big buyers of Russian energy and weapons.

"Russia has become one of the largest exporters of food despite the sanctions, so who knows what the reaction would be if they changed their approach to the fighting. I think this war will last until Ukraine experiences severe economic destruction, because at some point the West will not be able to provide the money it has been giving (Ukraine) thus far," said Zdravkovic.

Asked how potential new sanctions could affect Serbia, the economist warned that our country is completely dependent on global trends:

"Everything can affect Serbia. We are a small country, dependent on everyone, economically. Jobs depend on German companies, where some people work, on the one hand there's that. On the other hand, we depend on Russian energy companies. We depend on bank loans, international financial institutions, on investments that come from the outside, also from the East. It all affects us, we are quite small."

(Telegraf Biznis)