Reasons Russia is not taking action against the US sanctions
Sanctions are commercial or political penalties levied by one or more nations against a target nation. The penalties are levied to coerce the target nation to agree with certain policies.

Russia is an example of nations that have been sanctioned several times by the US government. However, Russia has not taken any action such as starting a war or abiding by US policies. You might be wondering why Russia has remained unmoved despite series of US sanctions imposed on it. Well, Russia has implemented various methods to ease US sanctions as discussed below.

The state has also protected its

Russia has limited the use of US Dollars in its trade and stocks. For instance, when it was sanctioned by the US in 2018, it sold all of its US Treasury bonds to evade stock freeze. It replaced US dollars with euros at the expense of its major exports to China. Moreover, Russia conceals transactions from the US Treasury by allowing most of its transactions to be made using crypto - a digital currency with no central ownership. Also, it has built its domestic payments system to replace the SWIFT global network. This is due to its tension that more restrictions might be imposed on the SWIFT global network. It is also trying to coax countries like Iran and Turkey to accept the usage of its new payment system.

The state has also protected its weak sectors such as banking sectors. It has supported such sectors through reinsurance and patriotism of the sanctioned property. Furthermore, it has helped its companies to escape the US sanctions by allowing them to hide their ownership structure during registration through its Special Administrative Regions. The state's requirements to repay foreign exchange earnings have also been eased through borrowing from private banks for its sanctioned companies.

A well-known example is when Russia

Moreover, Russia has replaced the US government with other trading partners. The partners trade mainly in the finance sector, energy and military-use technology that were restricted by the US.

A well-known example is when Russia partnered with China in the gas project to replace the US. This enabled China's state banks to rescue Russia's gas project that had been sanctioned by the US. Additionally, Russia and China signed a business agreement in 2014. The agreement deal involved mutual trading in petroleum products between the two countries. This action eased US sanctions on Russia mostly in the financial and energy sectors.

Reasons Russia is not taking action against the US sanctions.

Russia has developed a technology and expertise that other partners have not known. This was done with the aim of replacing the US's technology that had been restricted. The undertaking of its technology was costly but it helped in easing US sanctions.

Russia has also committed itself to macroeconomic stability which has greatly boosted its economy. It has vast reserves with a positive deviation in the trade balance. For example, it recorded a positive deviation of 13% of its normal Gross Domestic Product (GDP) in 2017. Moreover, its currency stocks have been growing greatly after it had tallied a negative deviation in 2015. The method has greatly worked for Russia enabling it to be one of the least debt-burdened nations in the world.

Additionally, Russia's civil population has remained patriotic towards its government. This is besides their sufferings from the effects of US sanctions. Basically, when sanctions are imposed on the target country, the aim is to make the citizens of the target country riot against its government. The riot is thereafter expected to make the target country agree with the set policies.

Contrary to the US's expectations, Russians have not rioted against its government. This has enabled Russia to enforce the law of adaptation under the rule of President Putin. In this law, Russians are expected to adjust to their country's economic state. The adjustments are done via the planned budget and spending cuts. Also, most Russians are unconcerned in the US sanctions on their nation. Therefore, unless Russians riot against their government, it will still be unmoved by the US sanctions.

To sum up, the US expectation of forcing Russia to adjust to their set policies might not be achieved any time soon. This is because the methods used by Russia such as macroeconomic stability, adaption and limiting the use of the US Dollar has made Russia not act against the US bans, as discussed above. Therefore, Russia might remain unmoved by the US sanctions as far as these methods still work.

Share this Post:

Related Embargoes News: