Russia and Sanctions

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.

Some of the sanctions imposed were:

  • 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?

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7 thoughts on “Russia and Sanctions

  1. Interesting post! Personally, I do not believe that Russia involving themselves in this conflict and the annexation of Crimea were worth the economic costs that they had to pay, nor the blows to Russia’s standing internationally. However, I think that the reasoning that Russia places on their involvement in the conflict is a greater priority to them than avoiding economic penalties. That may change in the future when the effects of the sanctions are more strongly felt.

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  2. Russia getting involved in this Ukrainian conflict and the annexation of Crimea were certainly not beneficial for Russia in the long run. Russia’s arms sales were increased by 20% in 2013. According to Russia Today (RT), military sources in Russia suggest that the real volume of arms sales is even bigger than SIPRI suggests. So the embargo on exports of arms hurt the Russian economy.

    Source: https://www.rt.com/business/214539-russia-boost-arms-sales/

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  3. Russia at this point has no care for the sanctions being placed on them. I think their motives lie in expansion as opposed to economic interdependence. It seems that they are rooted in the glory days of Russia’s past of expanded borders and control.This is evident in their illegal annexation of two states and their intervention in Ukraine. Perhaps stronger sanctions should be enforced.

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  4. I do not think Russia cares to much about sanctions at this point. They are out for their interests, which is fine. I do not see the need for the U.S. to set our relations back to a cold war like state with Russia. Putin wants to regain respect for Russia on the world stage.

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  5. This is an interesting post and it seems to give a good example of country’s opportunity cost. In this article, it is stated that Russia illegally annexed the some territories in Ukraine and the sanction was imposed on Russia by EU and U.S.’s companies. The post said that these sanctions were the opportunity costs for them, namely, these costs are lower than stop interventions. I personally think that the reason Russia wants Crimea would be to get the access to the Black Sea, and it would cause a lot of benefits for Russia.

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  6. This really breaks down some of the sanctions that Russia has incurred because of the conflict going on. Although I think Russia doesn’t regret what they did with backing separatists, and annexing Crimea they still don’t like the sanctions that are in place. The opportunity cost could have been better for Russia if the port was actually taken away from them but it wasn’t, so they lost a lot more by annexing Crimea. Although by the U.S. and EU doing this they are sending a clear signal that they will not tolerate Russia bullying another country like Ukraine.

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  7. While Putin may seem to be an aggressive leader with only territorial expansion on his mind he does seem to have a plan beyond that. Putin could possibly be attempting to move into a position where countries won’t be able to place effective sanctions on it. Territorial gains can translate to raw materials, and in Ukraine’s case and increase in farm able land. Putin’s plan could be to show the world Russia isn’t a second rate country but a country deserving respect equal to the U.S.

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