In 2021, signs that Russian president Putin intended to escalate military actions against Ukraine, fueled fears of US sanctions in the Russia’s metal industry. Today, and after Russian forces launched an already week-long attack of indiscriminate bombings that targeted residential areas and killing dozens of Ukrainian civilians, Russia has become the world’s most sanctioned country. Nearly all countries in the West have imposed band and embargos against Russia that in effect has caused economic collapse in the entire country.
Economic Impact of Current US Sanctions on Russia
Just last week, US President Joe Biden announced bans on goods regarded as signature products of the Russian economy, specifically, diamonds, vodka and seafoods. Pres. Biden vowed to to continue ordering sanctions to squeeze Putin as the new trade embargo will deny the Russian government about $1 billion in yearly tax revenues. The US on the other hand, will merely lose about $500 million on lost exports sold to Russia, which is just a mere fraction of the $28 billion trade that transpired between Russia and the US in 2019.
Western Nations Band Together to Launch Other Economic Sanctions vs. Russia
Western allies likewise announced further economic retaliation, after the European Union declared a ban in the importation of iron and steel products from Russia. The EU also declared restrictions on new energy investments. The UK has expanded sanctions to include business and investments of hundreds of Russian politicians, particularly those considered as oligarchs.
The G7 or Group of 7 Nations namely member countries of the EU, the UK, the US, Germany, Japan, France and Italy, released a statement sending a message to Putin; saying that Russia can no longer enjoy the benefits of international economic order while grossly violating international laws.
In response, though, Putin likened the sanctions a declaration of war, threatening to nationalize the production facilities and business establishments of Western companies that closed or suspended their businesses in Russia.