http://online.wsj.com/news/articles/SB10001424052702303873604579495991860073278?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj
The US has stated that they are prepared to "step up sanctions" against Russia if Russian military actions do not end in Ukraine. The article states that it is unclear how these sanctions can be effective in slowing the revolt. These sanctions will target Russian business sectors including mining, banking, and energy. This increase in sanctions is the most visible sign of US anger towards Russia and resulted from the Russian activists seizure of government buildings on Saturday.
Will these sanctions help end the violence? Or will Russian activists continue to ignore them?
5 comments:
The problem with sanctions, especially on countries with poor democracies, is that the government can simply pass the financial consequences thereof onto the people, and due to the weak democratic systems the pushback is usually irrelevant (with the Arab Spring and related uprisings as the exception). Short of such public riots, it's difficult to imagine Putin reacting much to sanctions that don't affect him or his inner circle personally.
I agree with Ariel. This is why this is a controversial decision. Will the sanction even deter the Russians? And if it doesn't, will it really affect those who deserve it (the government)? I am not sure I agree with Ariel about Putin though. I think the past positive relationship in the global community has something to show as a hope for a positive future.
Recently, countries in the former G-8 (now G-7, in light of Russia's departure from the group) have begun making sanctions against Russia and have created a loan package for Ukraine. Worries about Russia's departure from the group and the country's potential backlash in response to tighter sanctions have been discussed in the meetings. Because Russia has a strong economic hold in Ukraine between its oil contract and investment in the Ukrainian economy, G-7 efforts to ostracize Russia from significant portions of the global economy may lead to Russian backlash or severe economic ramifications for the country.
The sanctions can and will effect Russian economy. Sanctions generally do affect common people the most especially when they are targeted at key sectors like mining, energy and banking. It is not clear what effect those sanctions will have on Putin's inner circles but he will definitely come under pressure from some of the oligarchs and people from his inner circle as major companies in those sectors are owned by his loyal supporters. Sanctions can also weaken Putin's ability to fund his operations in Ukraine, which important. But will they stop Putin from pursuing his goal of destabilizing and breaking apart Ukraine? The answer in my opinion is unlikely.
It's kinda hard to pass some of the sanctions onto the common folk when the sanctions are specific and aimed at Russian officials. However, no US sanction will affect the Russian economy too much. What is really needed is for the EU to pull its weight. If the EU bites the bullet and puts sanctions on Gazprom (the Russian economic lifeline), then the Russian economy will tank.
Also Samantha, there is something wrong with your link, it brings me to an article that I not only can't read (because I do not have access to the WSJ) but is also not even about the Ukraine.
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