Expert explains what sanctions are, how they can impact Russia/Ukraine conflict
GREENVILLE, N.C. (WITN) - “Sanction” is a word used in global affairs, but for the everyday person, it isn’t a common term to deal with.
As tensions between Russia and Ukraine (and the West) continue to grow, the White House has declared President Biden is ordering new sanctions on Russia after Russian President Vladimir Putin moved to recognize separatist eastern Ukraine regions.
The chair of East Carolina University’s Economics Department explains that a sanction is one of many tactics to intervene in a global conflict.
Dr. Haiyong Liu says a peaceful resolution is the goal of the European Union, and imposing a sanction, or penalty, is one way to try and achieve that. Essentially, the EU foreign policy chief is telling Russia they will have to pay for escalating the threat of invasion.
The implications on global trade and return investments could be massive, as Liu says the futures in European countries like Germany already declined by a drastic five percent. Furthermore, she says, many people such as traders and investors do not like the uncertainty sanctions bring about.
However, Liu says it is important to remember that any threat to the stability of the global market has the potential to be dangerous to everyone.
“If history has given us any lesson, you definitely don’t want to make a rushed decision without knowing all the facts,” Lio says. “I think banking, financial sanctions are just one, small- kind of chess piece in this very complex problem.”
By threatening Russia’s freedom in the economic global market, the hope is that it would be enough to convince Putin to avoid invading Ukraine.
The success of sanctions also relies on how many global parties are involved. Multiple countries on the same page creates stronger front than a single-country-backed sanction.
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