R16 Billion to R1.131 Trillion: SA Could Lose Trillions in Trade if It Sides With Russia and Not NATO

R16 Billion to R1.131 Trillion: SA Could Lose Trillions in Trade if It Sides With Russia and Not NATO

  • A number of countries have entered into an economic and trade war with Russia following the invasion of Ukraine
  • Over 140 countries voted in favour of reprimanding Russia for its acts of war at the United Nations Assembly on Wednesday
  • South Africa is among a few countries that in an economic agreement with Russia, which chose to abstain from the vote

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JOHANNESBURG - Since the invasion of Ukraine by its neighbour, Russia, a number of countries began to implement economic sanctions against Russia and invertedly began an economic and trade war.

The French government stated that placing such sanctions on Russia will make it difficult to continue waging war against Ukraine as the economy will collapse.

With the ongoing war, 193 countries met on Wednesday, 2 March to vote on a resolution to get Russia to retreat from Ukraine, according to a report by IOL.

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Russia's allies vs Ukraine's: List of countries that back up the two nations

SA, Russia, Ukraine, trade, R16 billion v R1.131 trillion
South Africa could lose out on approximately R1.131 trillion in trade revenue should it choose to side with NATO. Image: Themba Hadebe
Source: Getty Images

144 Nations voted in favour of the resolution, which condemns Russia's decision to invade Ukraine under the guise of "demilitarising" the country. However, Russia's economic partners South Africa, India and China decided not to participate in the vote.

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Brazil was the only country part of BRICS that took a firm stance against Russia by voting in favour of the resolution.

Now, the question remains if there will be any consequences placed against countries that decided to abstain in the vote, as some nations have decided to sanction countries such as Belarus that voted not to condemn Russia's action.

If countries part of the North Atlantic Treaty Organization (NATO) decide to implement trade sanctions on South Africa for not taking a firm stance to rebuke Russia it could impact the country's economy to a tune of R1.131 trillion, according to BusinessInsider.

Read also

US calls on SA Government to label Russia an aggressor amid conflict with Ukraine

NATO comprises of 30 countries, 28 of which are from Europe and two from North America, the United States of America and Canada. South Africa is a trade partner with these countries. By siding with Russia, South Africa would be choosing a trade revenue of R15.7 billion.

Countries that have chosen to abstain might not have the option to stay on the fence for much longer as the ongoing war is expected to impact the global economy and trade structures are expected to change.

South Africans share their thoughts on the economic implications of siding with Russia

@skizoland said:

"....so you thought we will trade our sovereign right for a trillion rands!! Anyway as you have said in "trade" meaning they too want something from us and they won't get it... why do they think trading with us is some kind of charity work."

Read also

South African billionaire Johann Rupert loses close to R19 billion since Russia's invasion of Ukraine

@NaiduVaches said:

"South Africa, besides not backing democracy, is backing the losing side, financially. Not the sharpest tool in the shed."

@curns12 said:

"ANC must go seriously. The rest of South Africa is being dragged down with them and if people still believe the ANC is a political party that acts in their best interest then they should go down with the ANC as well. South Africa deserves a better life."

Russia-Ukraine invasion: Continued tension could impact South Africa's economy negatively in future

Briefly News previously reported that in the early hours of Thursday morning, 24 February, Russian President Vladimir Putin realised the fears of many world leaders and Ukrainian citizens by announcing that Russian soldiers would be invading Ukraine.

The Russian president also warned other world leaders that should they try to intervene in his efforts, they could face severe consequences. Putin's decision comes after months of speculation that Russia was making preparations to invade Ukraine by establishing military training posts near Ukrainian borders.

In the months leading to the invasion, world leaders such as US President Joe Biden attempted to hold talks with Putin, which proved to be unsuccessful.

Source: Briefly News

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