Will Sanctions have Economic Impact on Russia?

My short answer: Nothing of significance will create a dent in Russia’s economy.

Think about it this way:

  • Suspending Russia from the G8 Summit and placing a visa ban against Russian politicians are merely symbolic gestures and do not seem to affect Russia in any symbolic way.
  • Even the sanctions on trade will not cause much harm (as only 2 percent of Russia’s exports got to the U.S. and mostly includes petroleum products, and only 5 percent of total imports from U.S., including vehicles, agricultural products, chemical products and civilian aircrafts, etc). They can always procure them from other countries.
  • Russia can survive by forging a close alliance with China. They are not allies the way the U.S. and European Union are, mainly because Russia expects China to have a go at Russia’s Far East at some stage. However, tactical needs for survival can trump the strategic concerns. That can result in close and truly cooperative alliance of China, Russia, Kazakhstan, perhaps Mongolia, some others, with China building high-speed railways all the way to Sevastopol.

        For More:   http://www.wnd.com/2014/04/will-sanctions-have-economic-impact-on-russia/

Thank You,
This entry was posted in Financial, Politics on by .

About Ziad K Abdelnour

Ziad K. Abdelnour is President & CEO of Blackhawk Partners, Inc., a New York based private equity ”family office” that focuses on originating, structuring, advising and acting as equity investor in management-led buyouts, strategic minority equity investments, equity private placements, consolidations, buildups, and growth capital financing's in companies and projects based both in the US and emerging markets.