Sanctions are imposed on a country by other various countries as a deterrent to discourage any adverse acts done that go against international policies and laws. Because of Russia’s recent actions towards the country of Ukraine, several countries belonging to the United Nations have started to impose various sanctions towards Russian oligarchs and the Russian government in order to try and weaken the country’s economy and demoralize any future aggressive actions against Ukraine.
While Russia’s invasion of Ukraine unfortunately has not come to an end just yet, multiple nations across the world have already started to strengthen the sanctions imposed. U.S president Joe Biden has already announced that the United States of America will cease to do any form of business with the Central Bank of Russia. This, in turn, caused all Russian assets within the United States to be frozen until further notice. All 27 members of the European Union also agreed to follow suit and block off all EU financing to Russia’s two biggest private banks- an act that severely impacted the economic flow of Russia.
In addition to these, numerous other countries such as New Zealand and South Korea have also decided to try and de-escalate the situation by imposing sanctions against Russia, as well. Other sanctions imposed by numerous countries include the targeting of certain individuals known as “oligarchs” of Russia who are close to the Russian government. Many places have also issued travel bans to and from Russia, as well as stop numerous trade dealings of various industries with Russia. Doing so impacts the tourism industry and forces the country into a state of economic decline.
Do sanctions work against Russia?
With Russia’s declaration of war against the country of Ukraine, the USA and EU allies have taken action to prevent any unwanted conflicts from intensifying. So, what exactly are the effects of the imposed sanctions by the countries against Russia? There is no doubt that the effects of these sanctions deal the biggest blow to the Russian economy, as this is their main target in order to slow down any provision of supplies to the Russian military. With their currency rate dropping and the Russian stock market experiencing a closure to avoid panic trading, the economic attacks against Russia are certainly dealing a significant amount of damage to the welfare and livelihood of its citizens. If this continues for the foreseeable future, we may witness a recession in Russia’s financial state.
The unjustified attack on Ukraine has undoubtedly led to an economic meltdown for the country of Russia. With overseas assets frozen and with little to no help from other countries, it may take a significant amount of time for the economy of Russia to recover from this drastic shift in its condition. While there is still no clear end to the devastating invasion of Ukraine, the rest of the world can only look at these sanctions as a means to support Ukraine in their fight for their country.