Putin's Export Restrictions: A New Strategic Gamble?

Russian officials are grappling with President Putin's unexpected proposal to limit exports of key commodities in reaction to Western sanctions. The plan, introduced during a government meeting, raises concerns that it could backfire and harm the Russian economy more than its intended targets. Officials and industry insiders were taken by surprise by the announcement.

Russian officials and managers are grappling with President Vladimir Putin's unexpected proposal to limit exports of strategic commodities in response to Western sanctions. The plan, introduced during a routine government meeting on Wednesday, raises concerns about its feasibility and potential repercussions.

Putin's suggestion, which came 23 minutes into the meeting, has left many in shock. A company source described the initiative as "really out of the blue," while another likened it to "shooting yourself in the foot." The proposal targets commodities like uranium, nickel, and titanium, which are crucial to Russia's biggest firms, including state-owned conglomerates and major industrial players.

Experts warn that limiting exports could significantly reduce foreign currency earnings for these companies, which employ about a million people. While the global nickel market saw a brief price jump following Putin's comments, existing sanctions and low prices are already stressing Russia's exports.

(With inputs from agencies.)