Five Ways US Sanctions Are Harming Russia

International sanctions against Russia following its invasion of Ukraine have triggered what some analysts have called an economic cold war.

While US officials have been keen to portray their sanctions as devastating foreign policy tools, the bulk of Western economic countermeasures remain targeted at wealthy elites and their businesses, which are generally well insulated from the globalized economy.

The sanctions are also hitting everyday Russians while bringing back memories of the economic troubles of the country’s past.

• Russia’s gross domestic product could shrink by 7% for the year and 35% for the quarter, while inflation could reach 14% by the end of the year, two blows for the economy Russian.
• The sanctions have undermined Russia’s currency and cut off the country from advanced technologies needed for products ranging from smartphones to weapon systems.

The restrictions also had a cultural impact, bringing back memories of the 1990s, when the country faced a prolonged depression as its economy was restructured following the collapse of the Soviet Union.

Sylvan Lane and Tobias Burns have more on the impacts here.