Since the Russian invasion of Ukraine in February 2022, the West has coalesced around a cohesive sanctions strategy aimed at crippling Russia.
Several tranches of sanctions have ensued.
G7 leaders recently announced a series of sanctions that includes revoking Russia’s most favored nation (MFN) status, and the United States has banned the import of Russian oil and gas.
In a matter of weeks, Russia has surpassed North Korea and Iran to become the most sanctioned country.
Russian president Vladimir Putin, meanwhile, has responded by banning exports of over 200 commodities and threatening to expropriate funds and properties of foreign businesses in Russia.
For a country with a population of over 144 million people and a GDP of over $1.4 trillion, sanctions and export controls are already having a profound effect on international business and have encouraged firms not subject to sanctions to rethink their operations in Russia.
I would like tentatively to share the insights of Mr. William A. Reinsch, the Scholl Chair in International Business at the Center for Strategic and International Studies (CSIS) in Washington, and Ms. Emily Benson, a fellow with the CSIS Scholl Chair in International Business.
