Russia sanctions - cutting off our nose?…

**U.S. Sanctions Aimed at Russia Could Take a Wide Toll**

**The boldest measures that President Biden is threatening to deter an invasion of Ukraine could roil the entire Russian economy — but also those of other nations.**
**By Michael Crowley and Edward Wong, The New York Times, Jan. 29, 2022**

**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....**

**the “swift and severe” response that U.S. officials have promised could roil major economies, particularly those in Europe, and even threaten the stability of the global financial system, analysts say.**

**Some analysts also warn of a potential escalatory spiral. Russia might retaliate against an economic gut punch by cutting off natural gas shipments to Europe or by mounting cyberattacks against American and European infrastructure....** [end quote]

Officials say that for now, the Biden administration does not plan to target Russia’s enormous oil and gas export industry; doing so could drive up gasoline prices for Americans already grappling with inflation and create a schism with European allies.

The sanctions would target individuals and banks in Russia.

The sanctions would damage the Russian economy, but could have repercussions in Europe and the U.S. It’s impossible to say what the ultimate effects would be. Sanctions against Russia could end up cutting off our nose to spite our face.

I’m not saying this is the wrong thing to do. I’m saying that anyone who owns domestic or international stocks should be aware that this is a larger risk than it may seem.



Exxon is also active in Russia. Exxon owns a 30% stake in a $12 billion project near Sakhalin, which is one of the largest-ever foreign investments in Russia. The project was largely unaffected by the previous round of sanctions in 2014. Exxon said it was monitoring the current situation.

The Russian energy sector is already subject to U.S. and EU sanctions after the annexation of Crimea. Those sanctions prohibit the provision of goods and services to next-generation Russian oil projects as well as investment in them.…


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