The impact of sanctions against Russia

Mark Garrison Mar 24, 2014
HTML EMBED:
COPY

The impact of sanctions against Russia

Mark Garrison Mar 24, 2014
HTML EMBED:
COPY

President Obama was in Europe Monday, discussing economic pressure on Russia. He’s also warning of potentially stronger sanctions, “a greater cost,” if Russia keeps at it in Ukraine.

Current sanctions include a number of Russian government officials and oligarchs, as well as Bank Rossiya, described by the U.S. Treasury Department as “the personal bank for senior officials of the Russian Federation.”

On its face, sanctioning one bank and a handful of Russian billionaires may not sound like a sweeping move. But because of their broad network of affiliated companies and deep involvement with Russian business and politics, the impact could potentially be more widespread than it may first appear.

Russia’s currency and stock market have both fallen in recent days, impacting an economy that was lacklustre even before the crisis in Ukraine. Now potential investors in Russia are thinking twice, worried that the next round of sanctions could target their interests. That means Russia could lose out on the business deals and investment it needs.


Russia’s Economy By The Numbers, by Marketplace’s Tobin Low

-13.71%

How much Russia’s key index is down. YTD, representing tens of billions in company value destroyed.

-8%

How much the conversion rate of 1 ruble to $1 has fallen.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

Need some Econ 101?

Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.