The West has declared financial war against Russia, and in doing so have launched a series of sanctions. Financial sanctions are economic penalties against a country that can be used as a punishment or to disincentive certain actions. There are numerous possible sanctions that can be enacted, and all of them have the possibility to severely damage an economy.
One of the most spoken about sanctions that has been launched is the sanction regarding oil imports. The US banned the importation of Russian oil, and the UK is following suit. If the EU joins in banning energy and gas imports from Russia, their economy could contract more than 20%.
Along with importation sanctions, the US has also launched export restrictions. Russia and Belarus are now unable to receive technology that could aid in intelligence services, defense industry, and oil drilling and refining. These restrictions on exportation can put Russia in a more vulnerable position without the use of military violence.
In the past, the US has passed sanctions that focus on the Kremlin, but now these sanctions are hurting the broader Russian economy. If the trends that are already being seen continue, the Russian economy will continue to contract. However, the effects on the Russian government are also felt in the US with gas and grain prices rising and the stock market dipping.
Sanctions are affecting the financial war, that is clear, but there is no way to tell how it will continue to affect the rest of the globe. Learn more in the infographic below:
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