May 02, 2014
The playbook for sanctions on Russia
The newest round of sanctions on Russia sets the right tone for potential escalation of pressure if the political crisis in Ukraine deteriorates further. Hit President Vladimir Putin's inner circle of cronies and companies, but leave the energy taps on. Turning them off is impossible and unnecessary. There is a long path of painful sanctions short of direct bans on Russian energy supplies that could cripple the Russian energy sector and make its economy bleed.
The latest round of Russia sanctions, announced April 28, show that the Obama administration is willing to target the energy sector as a key point of leverage against Moscow. That Russia is the eighth-largest economy, and No. 3 in oil production and No. 2 in gas production globally, is apparently not a roadblock for energy sanctions. Energy and economic concerns -- for example about the potential effects of sanctions on global energy prices and Europe's heavy reliance on Russian natural gas and oil -- have yielded to diplomatic and security imperatives.
Some believe that the energy sanctions are symbolic. Oil prices and shares of oil companies operating in Russia did not move dramatically after the announcement of the new restrictions. But such a reading misunderstands this opening foray and underestimates the opportunities available to calibrate sanctions.
More from CNAS
-
The State of the War in Ukraine with Michael Kofman
Podcast
As the war in Ukraine continues into its third year, the mood has become increasingly dark. While territorial changes continue to be minor, Russia’s slow but steady advances a...
By Andrea Kendall-Taylor, Jim Townsend & Michael Kofman
-
Putin’s Fifth Term and Russian Domestic Politics
Podcast
This past weekend, Russians went to the polls for the country’s presidential election. To the surprise of no one, Vladimir Putin emerged victorious with a record-high 87 perce...
By Andrea Kendall-Taylor, Jim Townsend, Dr. Angela Stent & Joshua Yaffa
-
What NATO allies must do to prepare for Russian aggression
Commentary
While it’s expensive to do what’s necessary to deter major aggression, it would be far more expensive to fight a major war if deterrence fails....
By Andrea Kendall-Taylor & Greg Weaver
-
Ukrainians Are Resilient—But They Still Need Washington
Commentary
Beyond material support, my visit made clear that the psychological effect of global solidarity, especially from the United States, remains vital...
By Richard Fontaine
