Sanctions on Russia aren't stopping Putin — and doing more would bring a lot of economic pain to the US and Europe
." While the US has instituted a full ban on such goods, the UK has announced a plan to phase out oil imports through the year.
The EU has taken an even softer stance, saying in early April it would ban coal imports and continue to mull an oil embargo. That's likely because the EU relies on Russia for about 40% of its natural gas and about 27% of its oil imports. By comparison, Russian oil and petroleum imports counted for less than 2% of US supply. That leaves the EU and UK far more vulnerable to an inflationary crisis.
That could also exacerbate inflation problems the region already faces. Supply-chain strains continue to ensnare major economies, and higher energy prices would almost certainly lead to higher shipping rates. That would affect all kinds of goods and further widen the gap between supply and demand. Crude oil and natural gas are also key to many manufacturing processes. Fertilizer producers, for example, are heavily reliant on natural gas, and higher gas costs would force such companies to raise their prices. Yet fertilizer costs are already historically high,. Ramping up bans on Russian energy goods could spark chain reactions that worsen inflation throughout the western economy.
Economic pain could be the key to stopping Russia, but for the west to be able to dish it out, it must also be ready to take it.Subscribe to push notifications
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