WP: the impact of U.S. sanctions on the Russian economy remains unclear

The unclear impact of U.S. sanctions on the Russian economy has White House officials considering punishing third parties in foreign countries, the Washington Post reports.

“White House officials are preparing rare measures that would also punish third parties in other countries for interacting with sides of the Russian economy that have come under U.S. sanctions,” the report said.

This comes amid an escalating situation in Ukraine, and “at a time when the impact of existing sanctions on the Russian economy remains unclear.” These steps are not imminent and no decision has yet been made on such measures.

U.S. sanctions against Russia will not achieve their goals. In response, Western countries announced large-scale sanctions against Moscow, primarily in the banking sector and the supply of high-tech products. Some brands announced that they would stop operating in the country.

The Kremlin called these measures an economic war, the likes of which have never been seen before. The Russian authorities stressed their readiness for such developments and assured that they will continue to fulfill their social obligations. The Bank of Russia is taking measures to stabilize the situation on the currency market.

Previously Prime Minister Mikhail Mishustin said that the government has prepared a plan to counter restrictive measures, which includes about a hundred initiatives. The volume of its financing will be about one trillion rubles.

President Vladimir Putin signed a decree the day before, expanding the powers of regional authorities in the socio-economic sphere. The document also obliges them to increase social payments, provide targeted support to citizens, ensure price stability for essential goods, monitor the situation in the labour market and reduce administrative barriers for private businesses. The president also announced increases in pensions, living wages and salaries.