Giving Russia sanctions time to work and bite

In response to Russia’s invasion of Ukraine, the G7 and some 50 other countries have imposed economic sanctions on Russia. They consist of two broad categories: real and financial.

Real sanctions include restrictions on trade with Russia and the revocation of its most-favored-nation status. Financial ones involve a freeze on Russian assets held abroad and measures that impede cross-border fund settlement.

Although not a part of sanctions per se, Western companies’ withdrawal from Russia triggered by sanctions has had a real impact. Substantial outflows of skilled human capital have also taken place in Russia, partly due to the grim economic prospects under sanctions.


Business Asia
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