The conflict in Ukraine is one that has been continuous, and Russia has been getting involved which has been causing even more conflicts and problems especially for Russia itself. Many keep imposing sanctions on Russia because if their involvement in Ukraine. The EU and the US were placing sanctions on Russia because of their backing of the Separatists in eastern Ukraine. Russia was also in clear violation of Ukraine Sovereignty and territorial integrity by acts of aggression with the use of their armed forces. Russia had also illegally annexed Crimea and Sevastopol, after that there were travel bans and asset freezes. The EU had told Russia that they had to withdraw their armed forces and go back to where their permanent stationing was, but they did not do what they were told. The EU and the US weren’t the only ones who were imposing sanctions on Russia, Australia had also placed Sanctions on Russia for their involvement with Ukraine.
- The EU nationals and companies can’t buy or see new bonds or equity that has a maturity of 30 days or more by
- Five major state- owned Russian banks
- Three major Russian energy and defense companies
- Services related to the issuing of these financial instruments, like brokering, is prohibited
- Five of the major state owned banks can’t receive loans from EU nationals and companies
- Embargo on imports and export of arms and related material
- Services necessary for deep water oil exploration and production, arctic oil exploration or production and shale oil projects may not be supplied.
All of this can be seen as the opportunity cost for Russia. They felt like they could benefit from getting involved in the conflict in Ukraine, they also felt that the annexation of Crimea and Sevastopol would be worth it, like they could get more if they did that. The cost of doing that were these sanctions that are being placed on them which is economic costly for them.
Do you feel that getting involved in this conflict and the annexation was worth the cost that they had to pay?