U.S. Sanctions Aimed at Russia Could Take a Wide Toll
WASHINGTON — The most punishing sanctions that U.S. officials have threatened to impose on Russia could cause severe inflation, a stock market crash and other forms of financial panic that would inflict pain on its people — from billionaires to government officials to middle-class families.
But the strategy comes with political and economic risks. No nation has tried to enact broad sanctions against such large financial institutions and on an economy the size of Russia’s. And the “swift and severe” response U.S. officials have promised could roil major economies and threaten the stability of the global financial system, analysts say.
The pain caused by the sanctions could foment popular anger against Russian President Vladimir Putin. But history shows that the country does not capitulate easily, and resilience is an important part of its national identity. U.S. officials are also sensitive to the notion that they could be viewed as punishing the Russian people — a perception that might fuel anti-Americanism and Putin’s narrative that his country is being persecuted by the West.
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