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
-
Putin’s Point of No Return
Commentary
The United States and Europe must invest in resisting Russia now or pay a far greater cost later....
By Andrea Kendall-Taylor & Michael Kofman
-
What Can Europe do in Syria?
Podcast
After 54 years of brutal rule in Syria, the al-Assad family’s reign came to an end last week. Following 13 years of devastating civil war, which saw over a million refugees fl...
By Andrea Kendall-Taylor & Jim Townsend
-
Trump and the War in Ukraine with Michael Kofman and Robert Lee
Podcast
More than 1000 days into the War in Ukraine, questions about continued support for the Ukrainian effort and the prospect of a negotiated settlement in the months to come have ...
By Andrea Kendall-Taylor, Jim Townsend, Rob Lee & Mike Kofman
-
The Future of Russia and China in Central Asia
Podcast
Despite the many proclamations that Russian and Chinese interests would collide in Central Asia, Moscow and Beijing continue to work together in service of their shared object...
By Andrea Kendall-Taylor & Jim Townsend
