Russia’s war with Ukraine is being fought on two fronts. There is the kinetic war with troops, tanks, and drones. And there is the economic war being waged with sanctions, dollars and rubles.
While the conventional warfare has been getting almost all of the media’s attention, it's the economic sanctions led by the United States and Europe that could be doing the most severe and long-lasting damage to Russia.
In fact, the economic war is not only crippling Russia’s now and future economy, but it’s also reshaping global trade for energy, food, fertilizer, technology and financial services.
These sanctions have affected, and will continue to affect, global trading patterns, financial integration, and foreign policy in novel ways. The sanctions caused Russia to increase trade with non-sanctioning nations such as China, India, and other countries in the Middle East and South America, creating stronger ties to those nations that may affect future world alliances.
What made these sanctions so unique was the extent to which they were coordinated across jurisdictions outside of existing multilateral organizations such as the United Nations. Instead, the sanctions against Russia were imposed by the United States, the European Union, the United Kingdom, Japan, and a host of other countries, which combined make up 36 percent of the world’s population. This joint effort helped to isolate Russia in the world economy and also sent a powerful political message.
Although the sanctions did not ultimately halt Russia’s economy or cause it to withdraw from the war, the multinational showing of economic solidarity could usher in a new era of diplomacy where coordinated economic sanctions are increasingly used to impose political pressure without using military intervention.
How important and impactful has the economic response been to Russia’s invasion of Ukraine?
Guest:
Christine Abely is the author of The Russia Sanctions: The Economic Response to Russia’s Invasion of Ukraine (Cambridge University Press).
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This interview will air on Tuesday, January 9, 2024.
