Experts see Western sanctions against Russia as a warning and a first step

It is difficult to find sanctions against Russia as a large and theoretically self-sufficient country to help set the course. “If you use all the coverage at once, then you have nothing left and there is a rapid escalation. Because the goal is to do it proportionately, slowly and keep room for maneuver, ”said financier Ģirts Rungainis.

He said that there was now a commitment to take the next steps towards more painful sanctions if needed. According to him, Western countries are moving towards the introduction of similar sanctions, which were at the end of the Soviet period with a ban on the supply of Western technology.

“Russia has awakened the West from the euphoria of the collapse of the Soviet Union,” Rungainis commented.

According to the financier, the sanctions should hit painful points – money, banks, “Putin’s wallets and black box holders”. This will increase the discomfort of the Russian elite. And now the Western movement is in the right direction.

“Currently, restrictions on bonds have had a significant impact on the bond market. It is clear that the opportunities for Russia and its structures to borrow, operate and operate in international markets are further reduced, and Russia’s attractiveness as an investment destination is further reduced, ”said Rungainis.

Professor Gundars Bērziņš of the University of Latvia also believes that the sanctions currently envisaged are aimed at deterrence in order to prevent further ill-considered actions by Russia.

He described them as warning sanctions: “They are aimed at individuals, individual institutions that are closely linked to the ruling regime. We cannot say that these sanctions are against the technological sectors, against the entire financial system or the economy as perceived by every citizen. “

Bērziņš explained that the most painful step that would affect the Russian population and the country’s economy would be second-level sanctions: , but [sankcijas attiecībā] to intellectual property. And right now, the sensational package has the option of banning the use of any American-owned intellectual property. (..) If this is solved in this way, the factories that produce refrigerators in Russia will not be able to work at the moment either. ”

“It is good that we were able to coordinate and take the first steps, but unfortunately now it looks like we will need more and new ones. [sankcijas] and to include other areas that we have not yet touched on, ”said Andris Gobiņš, the leader of the European movement in Latvia.

Asked about the ability of Russia and its economy to adapt to Western sanctions, Rungainis commented:

“Russia’s main asset is a nation that tolerates being treated and governed in this way.

What they have in terms of raw materials and size means that they can be extremely self-sufficient economically if they want to. Its quality of life will be low and lower. ”

CONTEXT:

Russian President Vladimir Putin’s decision recognition of the independence of the “People’s Republics” declared by the separatists in Donetsk and Luhansk has led to an almost unanimous condemnation of the international community. Western leaders warn that new sanctions will be imposed on Russia.

German Chancellor Olaf Scholz told methat the certification process for the Nord Stream 2 gas pipeline built by Russia is suspended. Sanctions against Russia were also announced In Great Britainwhich decided to set them for five banks.

Also The European Union agreed on new sanctions against Russian banks, politicians and elements of the financial sector. Canada, Australia and Japan have also imposed sanctions on Russia.

The first package of sanctions against Russia was decided also respond to the United Statesagainst the Russian national debt, the Russian elite and their families, the state – owned investment bank VEB.RF and the “army bank”. The United States also announced the sending of additional army forces to the Baltic States. Canada will take such a step.

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