On August 12, the Center for Public Energy "Vezha" interviewed economist Oleh Penzyhn. The focus was the recent executive order by ex-US President Donald Trump regarding talks with China and global economic processes tied to the war in Ukraine.
Penzyhn highlighted that the deadlines announced for tariffs on imports from countries buying Russian oil had not been enforced. Meanwhile, China suspended a major lithium deposit, affecting global prices for this resource used in electric vehicle batteries, increasing economic interdependence between the US and China.
Annual trade between China and the US ranges from $600 billion to $700 billion. China remains the main buyer of sanctioned Iranian oil, despite sanctions. Penzyhn stresses that Russia is not an independent economic actor in these negotiations and is reliant on China; a potential stabilization loan from China could help Russia in a budget crisis.
The discussion also addressed the political and trade nuances of the Ukraine war, Russia's reliance on China, and Trump’s hope to pull Putin away from Xi Jinping.
The second part of the interview focused on the delay in Rheinmetall’s plant construction in Ukraine. The economist attributes this primarily to bureaucracy and problems with electricity grid connections. Penzyhn emphasizes that improving the investment climate requires breaking a system fraught with bribes and bureaucratic hurdles.
The guests concluded by highlighting the need for open discussion on investment problems, anti-corruption efforts, and systemic reforms to attract foreign companies.
