The United States and European Union have both announced tougher sanctions will hit Russia in the coming weeks, after the failure to stop helping Russian separatist groups inside Ukraine’s Donetsk and Luhansk regions.
Russia has been sending weapons and military grade rockets to the different separatist groups, allowing them to gain advantages against the Ukrainian military, currently fighting in the Southern parts of Ukraine.
In order to stop Russia’s continued support, the United States will sanction major banks, defense firms, energy companies and weapon manufacturers in Russia, crippling the economy in terms of product output.
The European Union is expected to have a list of companies sanctioned in Russia, alongside the European Investment Bank and European Bank of Reconstruction and Development both not offering funding for Russian projects.
Speaking to reporters, Russia’s President Vladimir Putin seems unscathed by the sanctions from the US and EU, claiming sanction have a boomerang effect and will most likely hit these countries hard.
Russia will drop any talks currently happening with the countries involved and will most likely counter-attack by sanctioning some of their companies, though this would once again weaken the Russian economy.
The issue for Russia is more is imported from other countries than exported by Russia, while guns, energy and oil might be big for some countries, the US and EU both have plenty of other countries to go to for help.
Russia’s list is getting smaller – if they cannot fight this battle due to their home losing its economy, we might see the fight in Ukraine finally stop, once Russia retract their units and begin to cooperate.
This might not happen for some months, but the US and EU will implement harsher sanctions if military intervention happens in Ukraine, forcing the US to withdraw all of their economy from Russia.