3 minutes agoPossible Consequences of Western Sanction on Russia
Periskopi(4 years ago)
(4 years ago)It is unclear whether Russian President Vladimir Putin had predicted how massive the sanctions that followed the start of his aggression in Ukraine would be. But their severity could have serious economic consequences for Russia. As paralyzing sanctions begin to take effect in Russia after aggression against Ukraine [...]
As paralyzing sanctions begin to take effect in Russia following the aggression against Ukraine from Moscow, some experts say Russian President Vladimir Putin may have been surprised by their severity.
I think Putin was surprised. Russian ruble depreciated. Russian response suggests that the Russian economy is heading towards an unconversable routine. That means a black market in Russia. That means the black market for dollars and the black market for objects bought at $18x1>, says Daniel Fried of the Atlantic Council.
Economist Yuri Gorodnicenco of the University of California, Berkeley, agrees that sanctions can turn Russia into the Soviet-era economy.
The “Russians should remember what happened in the early 1990s when inflation was high when there was a deep decline in economic growth. Would they like to be paid with tires, pipes and oil? These are all possible” scenarios, says Yuri Gorodnicenko of the University of California.
And the West, experts believe, has not exhausted sanctions options.
Another sector they can hit hard is energy, but sanctions in that area would harm not only Russia but also the world.
The problem is that without sufficient alternative energy sources to develop, it will be difficult to do so. And I'm not happy to say that. But if we stop buying Russian oil and gas, they will find other markets especially for oil, but the price will increase and it is possible that Putin will benefit from this”, Fried says.
Experts believe the next round of sanctions could include even tougher restrictions imposed on Russian companies and stricter restrictions on energy exports.
What is also clear is that Russia may be gaining ground in Ukraine, but is losing the information fight.
I think they understand that. First, there will be an open letter signed by 159 Nobel laureates opposing the war in Ukraine, urging Russia to stop aggression. Scientists around the world are speaking against the invasion. Russian scientists have also written an open letter opposing the fight”, says Ilona Sologby and VoxUkraine.
Protests throughout Russia make it clear that even ordinary citizens oppose Russia's decision to intervene in Ukraine. Even some of the country's richest citizens, such as oligarch Mikhail Friedman and industrialist Oleg Derippaska, have said they oppose Russia's actions. / VOA
