The Obama administration has responded to increasing Russian aggression by stepping up its own efforts to inflict economic pain on Moscow and isolate it diplomatically. The United States and the European Union announced a new round of sanctions on July 29 that bar a number of Russian banks from U.S. and European capital markets, deny Russian energy companies sophisticated oil development technologies, and expand restrictions on Russian defense technology.
Even worse for Moscow, the new measures make it harder for Russian companies to raise medium- and long-term financing in Western markets, and extract oil from the Arctic and new deep water and shale reserves. They also hurt the Russian economy by increasing investor anxiety, which is likely to accelerate capital flight and cause foreign bankers to cut back on loans to Russia.
After announcing the latest sanctions, U.S. diplomats traveled to China, Japan, Singapore, and South Korea to urge their Asian partners to support efforts to tighten the economic vice on Russia.
More from CNAS
ReportsMaking Sense of Cents
Executive Summary This report contextualizes the Biden administration’s discretionary funding request for the U.S. Department of Defense (DoD) in fiscal year (FY) 2022, referr...
By Stacie Pettyjohn & Becca Wasser
ReportsSanctions by the Numbers
Cyberattacks pose a serious threat to U.S. national security and the integrity of the global commerce and financial system, especially when state-sponsored actors conduct and/...
By Jason Bartlett & Megan Ophel
CommentaryChina and Russia’s Dangerous Convergence
Any effort to address either Russia’s or China’s destabilizing behavior must now account for the two countries’ deepening partnership....
By Andrea Kendall-Taylor & David Shullman
PodcastU.S. and Allied Withdrawal from Afghanistan, with Federica Mogherini and Lisa Curtis
What does President Biden’s decision to withdraw all troops from Afghanistan mean for American allies? Federica Mogherini and Lisa Curtis join Andrea Kendall-Taylor and Jim To...
By Carisa Nietsche, Andrea Kendall-Taylor, Federica Mogherini & Lisa Curtis