News / Economy

Analysts See Little Impact From Western Sanctions on Russia

Pro-Russian supporters take part in a rally outside the regional administration in Donetsk.  The US and the European Union imposed sanctions including asset freezes and travel bans on officials from Russia and Ukraine after Crimea applied to join Russia on referendum, March 17, 2014.
Pro-Russian supporters take part in a rally outside the regional administration in Donetsk. The US and the European Union imposed sanctions including asset freezes and travel bans on officials from Russia and Ukraine after Crimea applied to join Russia on referendum, March 17, 2014.
Ken Bredemeier
Experts on economic sanctions say the measures imposed by Washington and the European Union on Russian and Ukrainian officials will have little immediate impact.

Those travel and visa restrictions were imposed on people who pushed Crimea to join the Russian Federation.

But some analysts worry that sanctions may be strengthened soon, which could raise tensions further.

One native Russian who tracks economic issues, Misha Gutkin of VOA's Russian service, says some of the seven Russian officials sanctioned by U.S. President Barack Obama on Monday were surprised at how weak the measures were and they laughed about them.

One official, Deputy Prime Minister Dmitry Rogozin, used his Twiiter account to jokingly address the American leader as "Comrade Obama."

Some of the Russians said they have no assets in U.S. financial institutions and no intention of traveling to the U.S., negating the impact of a visa ban.

Gutkin cited the comments of Vladislav Surkov, an aide to Russian President Vladimir Putin, one of those sanctioned by the U.S.

"Vladislav Surkov said he considers [being sanctioned] an honor, and in fact he has no property or bank accounts in the United States. And the only things that he is interested in the United States are works by [poet] Allen Ginsberg, [artist] Jackson Pollock and [rap musician] Tupac Shakur, and I don't need a visa to enjoy those, he said. So far the effect is negligible," said Gutkin.

The Russian stock market advanced Monday, suggesting that investors in Moscow were not very worried by the sanctions. The United States says it may impose further sanctions if Russia continues to push to annex Crimea.

Poltical scientist Stephen Farnsworth at the University of Mary Washington says the United States is treading a fine line in imposing sanctions.

"The challenge the United States faces is how to make sanctions sufficiently painful that they will encourage more reasonable behavior from Russia, but at the same time not so painful that they are likely to trigger an escalation," said Farnsworth.

He said the West's confrontation with Russia over Crimea "is bad now, but it could easily be worse."

Bankrate.com analyst Mark Hamrick says tighter sanctions could heat up the confrontation, and that could hurt the economy.

"If things start going down a slippery slope at an accelerating rate - it’s going to be very unsettling for the financial markets, so this is definitely a key risk factor for investors to be watching," said Hamrick.

Hamrick says he hopes cool heads (reasonable people) are able to keep the situation from escalating.

You May Like

UN: 1 Million Somalis at Risk of Hunger

Group warns region is in dire need of humanitarian aid, with at least 200,000 children under age of five acutely malnourished as drought hits southern, central part of nation More

Human Rights Groups Allege Supression of Freedoms in Thailand

Thailand’s military, police have suppressed release of independent report assessing human rights in kingdom during first 100 days of latest coup More

Jennifer Lawrence Contacts FBI After Nude Photos Hacked

'Silver Linings Playbook' actress' photos were posted on image-sharing forum 4chan; Federal Bureau of Investigations is looking into matter More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine Schools Resume Classes, Donate to Government Forcesi
X
September 02, 2014 12:58 PM
A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Internet, Technology Offer New Tools for Journalists

The Internet and rapidly evolving technology is quickly changing how people receive news and how journalists deliver it. There are now more ways to tell a story than ever before. One school in Los Angeles is teaching the next generation of journalists with the help of a state-of-the-art newsroom. Elizabeth Lee has this report.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.