USA Imposing 'Sanctions' On Russia: What Can Be The Impact?

USA President Joe Biden has recently announced that they will impose the 'first tranche' of sanctions against Russia. According to Biden, "We're implementing sanctions on Russia's sovereign debt. That means we've cut off Russia's government from Western financing." The USA President is also going to "prohibit new investment, trade, and financing by US persons to, from, or in the so-called DNR and LNR regions of Ukraine." Additionally, The USA Secretary of State Antony Blinken had also canceled a prearranged meeting with Russian Foreign Minister Sergey Lavrov. The USA is planning to restrict financial and trade-related transactions with Russia, as the eastern country has started an invasion of Ukraine.

However, according to some economic analysts, the 'sanctions' are not going to leave far-reaching impacts on Russia, because, at present, the country has overcome its recessionary period after the financial crisis in 2014.

But significantly, the European Union's 'sanctions' on a gas pipeline project might leave impacts. Nord Stream is a gas pipeline connecting Russia to Germany. The USA thinks that this pipeline could be an important geopolitical tool for Russia to strengthen Moscow's control over Europe.