EU and US Economic Sanctions on Russia

http://www.bbc.com/news/world-europe-28400218

The European Union and the United States have added more sanctions to Russian senior officials in a stronger response to the Ukrainian sovereignty. Since the unofficial annexation of Crimea in March, the EU and the US have chosen to respond the issue through economic measures. The increasing pressure and issues in Ukraine since March have done nothing but worsen the matter. The EU sanctions announced on 30 July have been the first time targets to directly disrupt Russia's state finances, energy and arms sectors. In addition to industries, many of President Putin's closest inner circle are subject to asset freezes and travel bans. These bans will make conducting business much more difficult.

Contrary to popular belief, the European Union is actually applying most of the bans. They have blacklist the heads of Russia's intelligence services. While many of the senior officials won't be affected by the travel bans, their assets have been frozen which doesn't allow them to sell or buy assets including property.

The EU and Russia conduct business on a much higher level than the United States. Germany is the main European trading partner especially for German autos. Germany and other countries rely on Russia for gas supplies which creates a large economic dilemma for decision makers. Another issue, is the embargo of food from Western countries which as elevated food prices in the country. At a time when Russia's economy is starting to seep into recession, Russia can't afford to sustain the majority of these sanctions.

The economic sanctions of the EU and the US on Russia have been effective to an extent. The economic sanctions can be potentially more devastating given more time to effect the average consumers. Russia is essence committing "economic suicide" by allowing it's pride and involvement in the Ukrainian crisis to consume it's own economy.