For the first time since the Cold War, the U.S is taking major action against Russia. This comes as a result of Russia’s invasion into Ukraine, and it isn’t the U.S sending soldiers into Ukraine to help, the U.S is instead implementing harsh economic sanctions to try to decentivize Russia.
Sanctions have to be applied quickly and harshly to have their desired effect. The U.S and the West at large have all started to sanction Russia, but the U.S has been the most headstrong in their actions.
The largest sanction applied is the complete ban on Russian oil importation by the U.S. This has led to increased gas prices in the U.S but is a strong blow to Russia’s biggest export. On top of this the U.S has completely banned the purchase of Russia bonds, frozen Russian assets, slowed exports to Russia, banned Russia’s biggest bank from USD transactions, and worked with other nations to remove Russia from international banking at large.
All of this together, along with other countries’ efforts, is projected to contract the Russian economy by up to 15% in 2022. This has led to economic instability in Russia, currency fluctuating, interest rates going up, and most foreign currency being turned into Russia’s native ruble.
This is a sizable blow to Russia, but the U.S itself is seeing some issues. Gas prices have not just risen but reached multiple all time average highs, the stock market is hitting decade long lows, and the market is in a similarly volatile state. This is the price to pay for shutting out an economic player as major as Russia.
Although not perfect, the U.S sanctioning Russia is a major step in trying to stop the war in Ukraine. The world’s efforts at large are projected to majorly affect Russia, but only time will tell how Russia will react to these effects.