President Obama signed an executive or to effectively sanction Russian industries including financial services, metals, and engineering. These round of sanctions could cripple the Russian economy that is heavily reliant on oil and natural gas exports. As tensions in Crimea increase, the US sanctions has the potential to hurt not only the Russian economy, but much of Europe that relies on many exports will hurt because of it too. As the number one supplier of energy, Russian sanctions will limit the amount of power they will be able to produce and export. Threats to increase the severity of sanctions from the US will likely hurt other industries not only in Russia, but their trading partners.
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3 comments:
Although these sanctions are severe, President Obama has only signed an executive order giving the power to apply these sanctions. In no way has these sanctions been imposed. I believe that this step could (but may not) deter Russia from advancing. I also wonder what our allies in Europe think of these sanctions if they do negatively effect Europe. I do not believe that the US will have to impose ALL of these sanctions if Russia does not comply, I believe we would impose only a few.
It will certainly be interesting to see how the world powers actually react, if at all, to this mess. It's hard to say what to do because like you said we do not want to see punishments imposed on Russia affecting the rest of the world. It is already a mess over there and there are whispers that this could turn into another global war. Not to say Putin and Russia should not be punished because they should. Putin is an idiot and minor threats and a slap on the wrist obviously are not going to do the trick but that's just my opinion..
It seems that VP Joe Biden's statement that "Russia is heading down a dark path towards isolation-- both politically and economically" seems to be true.
The sanctions involving Russia's oil and natural gas industries signed by President Obama will surely cripple the Russian economy to some extent. In recent political news- just days after President Obama signed this new executive order, Russia was kicked out of the G7 (formerly G8).
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