The president of the Confederation of Production and Commerce (CPC), Subtle Johnreferred to the conflict that Russia is going through with Ukraine, which has brought repercussions to a large part of the world.
“You never know how these processes scale. For now, Russia is important for the Chilean export market, but it is not relevant. It has always been an extremely volatile market to enter and exit, precisely because of the volatility of its currency,” Sutil said in conversation with Radio DNA.
“In that sense, it affects the export, especially of agro-industrial products, but that do not generate or could not generate a big problem, as this is destined for other markets,” he added.
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Analyzing the warnings and sanctions that the West has declared to the president of Russia, Vladimir Putinthe union leader stressed that “if Russia effectively has the sanction of not being able to be in Swift and transfers and international trade, it will simply have to disappear or trade with countries that are willing to negotiate with them, such as China.”
After this, he stated: “But the rest of the world is going to be practically impossible because without a payment chain you cannot operate. The most serious point is what could happen if President Putin decides to venture into other areas: he has made threats of arms, or against Iceland, and in my opinion people who are out of their right mind, in my opinion, can expect anything. I think of Hitler and Poland, and it wasn’t just Poland.”
Inflation
Regarding the inflation that could occur in the country, he commented that “it is certainly going to hit, especially the oil market, but the world can regulate it, because there are other sources of extraction that are also regulated. I hope that this conflict will subside. When conversations start, it is because the attacker is not so firm. I hope it softens and does not affect the Chilean product. Not only corn will be affected, but also sunflower oil.”
“These are problems that are adding up. We are in a process of internal inflation: we closed with 7.7% inflation as a result of an overheating of the economy, of the withdrawals of AFP funds, and this is also going to have an impact. I am confident that if it is resolved diplomatically, the markets will go lower. But that remains to be seen because we do not know what the person carrying out this reckless action is thinking,” he added.
