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

US Investors Eye IPO for China's Alibaba

E-commerce giant handled 80 percent of China's online business last year, logging more Internet transactions than US-based Amazon.com and eBay combined More

Video Uneasy Calm Settles Over Israel, Gaza Strip

As cease-fire begins, Palestinians celebrate in streets; Israelis remain wary More

Video Chinese Doctors Use 3-D Spinal Implant

In treatment of a 12-year-old boy Chinese doctors used a 3-D printer and special software to create an exact replica of vertebra More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Chinese Doctors Use 3-D Spinal Implanti
X
August 27, 2014 4:53 PM
A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. VOA News reports from Kolkata.
Video

Video Northern California Quake: No Way to Know When Next One Will Hit

A magnitude 6.0 earthquake rocked northern California’s Napa Valley on Sunday. Roads twisted and water mains burst. It was the wine country’s most severe quake in 15 years, and while hospitals treated many people, no one was killed. Arash Arabasadi has more from Washington on what the future may hold for those residents living on a fault line.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.

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.