Russia’s invasion of Ukraine has prompted some of the harshest economic sanctions in recent times. Sanctions range from travel bans to complete trade embargos, and are meant to influence a country without the use or threat of military action.
In trying to dissuade Russia’s actions, the U.S and West at large majorly restricted Russia’s financial capabilities. Russia was removed from SWIFT, a system that allows cross-border payments across 200 different countries. Russia had their foreign reserves frozen, making that capital inaccessible. And Russia had oil importations limited across several countries.
While the U.S has taken the most drastic action and completely banned the importation of Russia, other countries have limited it and plan to stop the importation by the end of the year. The U.S has also taken initiative in limiting exportations to Russia and stopping the purchase of Russia bonds by Americans.
These sanctions have served to hurt Russia and, indirectly, the countries sanctioning alike. Russia has had increased interest rates, seen fluctuation in their currency, and forced the conversion of USD into native currency. This is a clear negative in Russia’s economy and can be seen in the unrest of citizens and desire for gold, a sign of market volatility.
The U.S, in contrast, has seen increased gas prices, the potential for grain inflation, and stock market dips. This is not due to the sanctions on Russia alone, but the effects of war and the actions taken against it have majorly affected the U.S and the world alike. It’s important to dissuade war and sanction but just as important to recognize the effects on common citizens that tend to come as a result of these sanctions.