As Putin’s invasion of Ukraine reaches its two-year milestone, concerns are mounting that the economic sanctions imposed on Russia may not be enough to deter the Kremlin’s aggressive actions. Despite the fact that no companies have returned to Russia, critics are mistakenly claiming that economic sanctions are ineffective. However, this is far from the truth.
While some sanctions have had a significant impact on the Russian economy, there are still loopholes that the Kremlin is exploiting to evade the sanctions. For example, targeting Russian jailors or the yachts of oligarchs may not be enough to cripple Putin’s war machine. It is crucial for Western policymakers to take stronger measures to fortify economic sanctions on Russia.
One of the key steps that should be taken is imposing new sanctions on Russian metals and commodity exports. Despite concerns about potential inflationary pressures, global commodity markets have shown resilience in the face of the loss of Russian supply. Tightening enforcement of existing sanctions and cracking down on evasion is also critical, as Putin continues to find ways to evade export controls and smuggle advanced technology into Russia.
It is imperative that Western governments prioritize sanctions enforcement and dedicate more resources to tracking down evaders. The businesses that have pulled out of Russia deserve better than to see their own governments turn a blind eye to smuggling and intellectual property theft. The time to strengthen economic sanctions on Russia is now, and failure to do so could have dire consequences for the ongoing conflict in Ukraine.