US Sanctions Fall Short In Ending Ukraine War, Experts Suggest There's Still More The West Can Do To Press Russia

The economic sanctions imposed by Western nations on Russia have not been as effective as hoped in ending the war in Ukraine. Despite this, experts believe there are additional measures that could be taken to further pressure Russia.

What Happened: The sanctions and trade restrictions imposed on Russia by Western nations have not had the desired effect of ending the war in Ukraine, reported Business Insider. The sanctions have targeted key sectors such as energy, frozen foreign assets, and severed financial ties with much of the West.

Despite these measures, Russia’s wartime economy has shown resilience, with a 3.6% annual growth in 2023 following a 1.2% GDP dip in 2022. Russia expert Owen Matthews suggested that the explosion of the Nord Stream pipelines in September 2022 has had a more significant impact on Russia’s economy than the Western sanctions.

“The whole kind of dirty secret behind all the European sanctions packages was that, for instance, Europe talked a big game about sanctions against Russia, but they never sanctioned Russian gas,” Matthews said.

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According to Liam Peach, a senior emerging markets economist at Capital Economics, the sanctions have been “porous,” allowing Russia to find ways to evade them. “The U.S. has tightened sanctions evasion on firms that help Russia import through third countries, but trade has a way of finding new routes and it’s hard to police. If it is profitable to evade sanctions, some firms will take the risk,” he wrote.

Despite the sanctions, Russia’s oil trade has not been significantly affected. European nations, in particular, have continued to accept energy supplies from Russia, undermining their own sanctions. Even U.S.-dominated financial sanctions have had limited impact, with Russia finding ways to bypass the U.S.-controlled global finance system.

Peach suggested that the West could exert more pressure on Russian energy by imposing secondary sanctions on third-party purchases of oil and gas from the country. He suggested that the West is unlikely to choose this route due to Russia’s dominance in energy and the risk of instability that could alienate partners like India. As an alternative, the U.S. could target Russia’s non-oil exports, such as industrial metals and liquefied natural gas.

Why It Matters: The failure of the Western sanctions to significantly impact Russia’s economy comes in the wake of a series of sanctions imposed by the U.S. These include sanctions on over 500 Russian entities, targeting the military-industrial complex and companies aiding the Ukraine war, and a new package of sanctions announced to hold Russia accountable for Alexei Navalny‘s death.

Despite the sanctions, the U.S. has managed to disrupt Russia’s financial flows through a warning to global banks of potential sanctions. However, the sanctions have not had the desired impact on Russia’s economy, prompting experts to suggest more stringent measures.

The Governor of the Bank of Russia, Elvira Nabiullina, preparing for additional sanctions amid economic restructuring.

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