New US Sanctions to Affect Europe, Ukraine More Than Russia - Expert
WASHINGTON (Sputnik) - The new US sanctions against Russia, imposed in response to Moscow’s recognition of the breakaway Donetsk and Lugansk people’s republics (DPR and LPR), will affect Ukraine and Europe more than Russia itself, US-based Eurasia Center Executive Vice President Earl Rasmussen told Sputnik.
The United States and its European allies imposed new sanctions against Russia after President Vladimir Putin signed decrees recognizing the independence of the DPR and LPR. Under new treaties, Moscow pledged to ensure the security of the two Russian-speaking republics. The sanctions target Russia’s Vnesheconombank (VEB) and the Promsvyazbank Public Joint Stock Company (PSB), the country's sovereign debt, its elites and their families.
“Will the new sanctions impact Russia? Yes, to some degree, but Russia will recover and is fairly sanctions proof following the multiple rounds of sanctions they had already received,” Rasmussen said.
However, the European and Ukrainian economies will face more serious consequences, he said.
“Energy costs will skyrocket even more. European industry will be slowed and likely not recover for a while,” Rasmussen said, adding that that outcome may well be one of the US objectives to achieve.
Rasmussen did not rule out that the situation in Ukraine will deteriorate even more as the time passes, but he noted that it was possible to avoid such a development if NATO would stop expanding eastward and Ukraine implements the Minsk agreements.
At the same time, Rasmussen said the global economy will not suffer as much as the Biden administration thinks it will.
“US companies may feel the impact. China will likely meet areas vacated by United States and Europe. Tech companies will likely be displaced by China or Russian technology,” he said.
Russia’s decision to recognize the DPR and LPR comes after a significant deterioration of relations along the line of contact amid interference by the United States and its allies. Russia has repeatedly denied having any intention of invading Ukraine.