Russia’s Financial Sanctions Regimes Under Fire as Ukraine Conflict Enters Third Year

============================================================

As Russia’s war on Ukraine enters its third year, the West has been grappling with ways to compel an end to Vladimir Putin’s aggression beyond military intervention. In response, a slew of sanctions packages have been unleashed by NATO-aligned states led by the United States and European Union, aimed at crippling Russia’s fiscal-military state and military-industrial capabilities.

The Effectiveness of Western-Led Sanctions Regimes

A new report from the Stanford-US-Russia Forum seeks to shed light on the efficacy of Western-led sanctions regimes against Russia, examining both existing sanctions imposed in response to Moscow’s 2014 annexation of Crimea and those introduced following the full-scale invasion of Ukraine.

Findings of the Study

The study finds that while economic sanctions have had a significant impact on various Russian industries and citizens, both within and outside the country, there are still several tactical and strategic shortcomings with historic Western sanctions strategies.

• Existing sanctions have targeted key sectors such as energy, finance, and defense, leading to a decline in Russia’s economy and foreign reserves.
• However, the study warns that these measures may not be sufficient to persuade Putin and his inner circle to abandon their aggressive course of action, given the strongman leader’s apparent reliance on sheer military force.

Policy Recommendations

In light of this, the study provides several policy recommendations for improving the effectiveness of Western sanctions regimes against Russia:

• A greater focus on targeting Russian elites and their assets
• More effective coordination between international partners

Conclusion

With the conflict in Ukraine showing no signs of abating, it remains to be seen whether these measures will be enough to bring Putin’s aggression to an end. The Stanford-US-Russia Forum report highlights the need for a more comprehensive and coordinated approach to sanctions in order to effectively persuade Russia to change its course of action.