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
    Jim Randle
    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

    Video Obama Remembers Fallen Troops for Memorial Day

    President urges Americans this holiday weekend to 'take a moment and offer a silent word of prayer or public word of thanks' to country's veterans

    Upsurge of Migratory Traffic Across Sahara From West to North Africa

    A report by the International Organization for Migration finds more than 60,000 migrants have transited through the Agadez region of Niger between February and April

    UN Blocks Access to Journalist Advocacy Group

    United Nations has rejected bid from nonprofit journalist advocacy group that wanted 'consultative status,' ranking that would have given them greater access to UN meetings

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8954
    JPY
    USD
    109.65
    GBP
    USD
    0.6827
    CAD
    USD
    1.3037
    INR
    USD
    67.037

    Rates may not be current.