To penalize Russia for invading Ukraine, there is much more the US and its allies could do. The sanctions imposed so far are already hurting the Russian economy significantly. However, it is likely that President Vladimir Putin will continue trying to take Ukraine.
By turning the screws even tighter, Putin’s cronies, the so-called Oligarchs, businesses, and the countries’ citizens are more likely to try to get him to stop. Who knows, things might get so bad that they decide it is time to get rid of him.
Depends on how the war in Ukraine unfolds
In a note to clients, Chief Economist at Goldman Sachs, Jan Hatzius, wrote:
“The prospects for additional sanctions depend mainly on how the war in Ukraine unfolds, but at this point further escalation of sanctions seems likely.”
Here are five more sanctions the US could impose on Russia:
- Block more companies and related Russian individuals.
- Ban all imports of energy from Russia.
- Slap on additional tariffs on Russian imports.
- Target more banks.
- Eliminate all exemptions (such as energy) to sanctions.
What are sanctions?
A sanction is an official order that countries take against a specific nation. The aim is to try to get that country to comply with international law, stop doing something unethical or illegal, or withdraw its troops from another country.
Sanctions are typically economic, i.e., blocking trade, targeting individuals, companies, and other organizations, and freezing assets.
In most cases, several countries work together when imposing sanctions. We refer to those nations as allies.
Experts disagree on how effective sanctions are. Even though there have been US sanctions against Cuba since the 1960s, nothing has changed.
This is the first time such severe sanctions have been aimed at a relatively large economy.
