Could Russia sanctions backfire?

Jeff Tyler Jun 27, 2014
HTML EMBED:
COPY

Could Russia sanctions backfire?

Jeff Tyler Jun 27, 2014
HTML EMBED:
COPY

As the Obama Administration considers unilateral sanctions against Russia for its actions in Ukraine, business groups are waving red flags.

Both the US Chamber of Commerce and the National Association of Manufacturers have sponsored ads in US newspapers that suggest economic sanctions would really hurt US companies and jobs.

Consider sanctions targeted directly at Russia’s financial sector.

“Any manufacturer that has any office in Russia that uses a Russian bank would no longer be able to transact normal business, meet payroll, pay invoices,” says Linda Dempsey with the National Association of Manufacturers.

Consequences for US companies aside, the real question is: will sanctions work?

“I think US unilateral sanctions send much more of a political message than an economic one,” says Olga Oliker who researches Russia for the RAND Corporation.

She says sanctions would have more impact if they were enacted in concert with Europe.

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.