1. Price of Aggression: The Impact of Sanctions on the Russian Economy
- Author:
- Kazimier Dadak
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Warsaw East European Review (WEER)
- Institution:
- Centre for East European Studies, University of Warsaw
- Abstract:
- In late February of 2014, president of Ukraine, Viktor Yanukovych, a staunch ally of Russia, lost power. This event sent into motion a sequence of events that pitched Rus- sia against its neighbour and the West. Faced with the loss of influence, if not control, over Ukraine, Vladimir Putin immediately took steps that, in his mind, were to secure the interests of his country. First, in March 2014, Russia seized and annexed Crimea; soon af- terwards a Russian-inspired rebellion engulfed eastern Ukraine. These measures drastically increased Putin’s popularity at home, but made him a pa- riah abroad. Initially, the West, including the European Union, imposed diplomatic sanc- tions1. They had no effect on Russian behaviour and, in July, the West expanded punitive measures to the economy2. President Putin did not budge, and in September, the United States and the European Union increased the pressure by imposing additional sanctions on the financial sector3. As a result, Russian companies, including large banks, were effec- tively cut off from western financial markets. Past experience, such as the U.S. led sanc- tions on Iran, shows that this type of punishment is very effective and this paper illustrates that they exacted a price on the Russian economy as well.
- Topic:
- Economics, Sanctions, Conflict, and Rivalry
- Political Geography:
- Russia and Europe