60 minutes overtime putin's called the sanctions akin to a declaration of war
is it you know we need to stay sober with our rhetoric we don't want to engage in provocative
language i'm not going to do that this week on 60 minutes we reported on the unprecedented economic
sanctions the u.s and its allies have levied on russia in response to russia's war in ukraine
guy campanile was the producer on this story we talked to dalip singh at the national security
council he designed the sanctions we asked singh about russia's relationship with china
and what might happen if china helps russia get around the sanctions look um russia's
economy is one-tenth the size of the european union's economy it's one-fifteenth the size of
america's economy china is a is a rising power it wants to engage with the world
russia is a declining power it's isolating itself from the world so china may want russia
as a junior partner to supply cheap oil and gas but let's not pretend it's anything more
we also spoke with christolina george the managing director of the international monetary fund
she told us she doesn't think it would be wise for china to risk getting entangled with russia the
problems china faces today are so significant that it is very unlikely they would seek even
more problems for their economy let's remember that growth in china has slowed down dramatically
and right now omicron is hitting china with the strongest wave since the beginning
of kovit i mean china always says what's best for china right so i let's say that
they decide for whatever reason that they're going to step in that there are sanctions against
china if there are secondary sanctions against china then what happens what is the impact we
would see more supply chain disruptions and that certainly is going to impact the global
recovery they are not as insulated as chinese china is very integrated in the world economy
in fact china trades most with europe next with united states trade with russia is 150
billion dollars a fraction of their global trade so it is very very likely that they
would be concentrated on protecting their ability to inject resources into their own economy versus
protecting the hundred and billion fifty billion they trade with with russia the global economy is
still trying to recover from coba disruptions inflation in the u.s is now at a 40-year high
we asked christolina gayorgaeva about the economic outlook the poorest countries were very
significantly already impacted by the covet crisis what we are seeing is this dangerous divergence
in economic fortunes rich countries were able to help their businesses and their people much
more poor countries much less so they are already exhausted so in these poor countries
people are very dependent on food prices on energy prices it's a very thin margin and in that very
thin margin it is now being blown out very simple message war in ukraine means hunger in africa
because africa imports from russia and ukraine big part of wheat and corn with prices jumping
up there would be more foot insecurity in the most difficult places just think of countries like
yemen or the horn of africa where foot insecurity is already present
how quickly do you anticipate that we're going to see those pictures we know will be coming of
people starving of these countries really being you know pushed to their knees fast why because
energy and food prices translate into inflation very quickly and the impact is significant here
in the united states 10 increase in energy prices means 0.3 percent increase in inflation when this
translates into inflation then what often happens is confidence drops and people rush to the store
by doing so they push prices only higher could this set off a global recession we are going to
revise our projections for growth for this year downwards but they would be still in
positive territory let's remember the russian and ukrainian economies
together are three and a half percent of the world economy what we are more concerned is
the sequencing of events you have a war prices go up inflation accelerates what do central banks do
they will have to tighten financial conditions how they calibrate between fighting inflation and not
throwing cold water on the recovery is going to be a tremendously difficult difficult task