The Ukraine annexation attempts of Russia are turning the country into a pariah for the western economies. The EU, Russia’s biggest business partner, has now joined America in imposing severe sanctions against Russia over the controversial Russian presence in Ukraine. The European Union has been holding up any severe actions on Russia so far as almost all 28 EU countries have major business interests in Russia. Present sanctions have targeted energy, banking, technology and defense sectors. But the sanctions do not apply to deals already made.
VTB, the Bank of Moscow, the Russian Agriculture Bank, as well as the United Shipbuilding Corp. are among the targeted companies in the present session. “If Russia continues on this current path, the costs on Russia will continue to grow… these new sanctions will make a weak Russia economy even weaker,” said US President Barack Obama announcing the sanctions.
Recent incident of downing of a Malaysian passenger flight has severely strained the image and approach of Russia with regard to its presence in the region.