What Are Sanctions, And Why Is The U.S. Sanctioning Russia?
Economic sanctions are a withdrawal of financial and trade partnerships levied against governments to punish them for violating international norms, such as what Russia did by invading sovereign Ukraine without provocation. The U.S. body that oversees sanctions is the U.S Department of the Treasury.
The American sanctions specifically target Russia’s energy sector,
which makes up more than half of the country’s
Gross Domestic Product. No U.S. oil company can do business with Russia, nor can any companies sell drilling technology needed to access oil and gas reserves. U.S. banks cannot issue long-term loans
to Russian businesses for energy-focused projects.
European banks are also prohibited from engaging in similar financing, as the European Union has also sanctioned Moscow; consequently, Russian companies have been forced to
rely on Beijing for loans for significantly lower amounts.
All of this is designed to weaken a key sector of Russia’s economy in hopes the pressure will entice Putin, over time, to reverse his annexation of Crimea and to withdraw Russian troops and its support of rebels in eastern Ukraine.
The Obama administration believed economic sanctions were the most precise method of punishing Moscow without an escalation of involving the U.S. in an armed conflict. Some
experts believe they are effective so far. But Obama is gone and how much of an impact sanctions will have in the future largely depends on Trump.
http://foxtrotalpha.jalopnik.com/the-american-sanctions-against-russia-explained-1791938454
