News / Economy

Experts Debate Effect of Sanctions On Russia

Experts Debate Effect of Sanctions On Russiai
X
Jim Randle
May 22, 2014 10:58 PM
Why can't I start setting up a site with my gregorymayflower.com domain name? Only nordicwalkingus.com is showing as an option
Western nations are warning Russia that they will toughen economic sanctions if Moscow interferes in Ukraine's election on May 25th.  Economic analysts are divided on what impact sanctions have had so far on Russia's economy and the actions of its leaders.  Some say sanctions frighten off investors and hurt the economy.  Others say those sanctions have already kept Moscow from pushing harder into Ukraine.  And still others are skeptical that sanctions will have much impact.  

Pro-Russian activists have been working to take over parts of eastern Ukraine, using tactics similar to those that helped Moscow annex Crimea.
Western nations are already using sanctions to punish Russia for seizing Crimea and to discourage any possible Russian invasion of other parts of Ukraine.

U.S. Secretary of State John Kerry says economic sanctions could get much tougher.

"If Russia or its proxies disrupt the election, the United States and those countries represented here today in the European Union will impose sectoral economic sanctions," said Kerry.

Russia's vital oil and natural gas industry could be one target of stronger sanctions.  That would be a big change from sanctions that have so far been aimed just at people in Russian President Vladimir Putin's inner circle.

John Chambers, of the Standard and Poor's financial services company, says sanctions worry investors because they increase uncertainty.
 
"There's already been an impact on the Russian economy.  You see that in the financial markets. You see that in the outward portfolio flows," said Chambers.

Uncertainty makes it hard for investors to assess risk, prompting them to take money out of the country.  Without capital to buy and build things, the economy can stall or even shrink.  

Russia’s economy already had problems, making it hard to judge the impact of sanctions, according to Columbia University Professor Tim Frye, who spoke via Skype.

“There are lots of underlying negative trends in the Russian economy that have dramatically slowed growth in the last couple of years.  At the margins, sanctions may be increasing some economic uncertainty, but they are not having a broad economic impact yet," said Frye.

An economist who once advised the Russian and Ukrainian governments says sanctions could get “a lot tougher.”  

Anders Aslund, of the Peterson Institute for International Economics, says that sanctions may have kept Moscow from taking stronger military action against Ukraine.

 "It is not obvious, but I think they [the sanctions] have worked.  What we have seen is that the Russian action in eastern Ukraine looks as if it is faltering, and one of the factors behind it is sanctions," said Aslund.

Aslund says Russia’s economy will shrink rather than grow this year, at least, in part, due to sanctions.

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.