Impact of US and EU Sanctions on Russia

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Introduction

The international political economy is as complex as it gets. Impact of US and EU Sanctions on Russia  There are several different factors at play at the same time that makes it extremely difficult if not impossible to analyze relationships between countries and evaluate the impact of one factor. The relationship between Russia, formerly known as the Soviet Union,

and the US can be best described as uncomfortable at best. At times the ties have become severely strained. However in recent times the two countries have maintained diplomatic ties and expressed commitment to pursue common objectives like curbing the threat of terrorism (Nelson et.al, 2015, pp. 1).

That was until the Ukrainian crisis turned up in 2014. Since then the relationship has been disintegrating as the United States has led the charge for economic sanctions on Russia. Impact of US and EU Sanctions on Russia The European Union was quick to follow and has come up with its own set of sanctions. The objective of this document is to understand the sanctions that have been applied on Russia and the effects that they would bring to the Russian economy.

Discussion

To understand the dynamics at play better, an effort would be made to analyze the sanctions applied separately. First we identify the role of the EU. The sanction announced on 12th September 2014 by the EU intended to target three of the most important sectors of the Russian economy; state finances, arms and energy.

Another reason to go ahead with these sectors first was that these areas of the economy have remained under control of the close associates of the president Vladimir Putin (Dolidze et.al, 2015, pp. 3). Some effects of these sanctions were more visible than others for example it was imminent that Russian banks would not be allowed access to EU finance…