Russian President Vladimir Putin

How the Sanctions Are Helping Putin

March 28, 2017
Andrey Movchan

This is a summary of an article originally published by Politico with the subheading: "The American debate over whether to lift sanctions on Russia misses a key point: They aren’t working."

The author writes that Western sanctions have not been nearly as damaging to Russia as they could have been. While Russia’s economy is in recession, the decline is mostly not a result Western sanctions, which target a small number of well-known Russian businesses but still allow Russia to be active on the global economic stage. Russian oil and gas production continues to increase at a rapid rate, and with $14 billion of weapons exports, Russia is the world's third largest arms exporter. Tougher sanctions with “targeted measures, such as a ban on the sale and service of passenger or cargo aircraft, could have brought Russia to its knees in months.” However, Russia’s domestic politics have been seriously impacted by sanctions. They have allowed state-owned media to blame the West for Russia’s economic decline, given Putin “tremendous leverage in controlling his team” and provided an opportunity for some Russian oligarchs to exploit sanctions and establish control over new domestic product monopolies. Easing sanctions on Russia would likely spell even more trouble for the Trump administration, which is already under fire for close ties to Moscow. The West will probably freeze the situation, and Moscow will be content with that. 

Read the full article at Politico. 

Author

Andrey Movchan

Andrey Movchan is a senior associate and director of the economic policy program at the Carnegie Moscow Center.

Photo credit: Kremlin.