Can European Economy Suffer From Russia Sanctions?

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March 14 (Bloomberg) -- Orysia Lutsevych, research fellow at Chatham House, discusses the potential impact of Sunday’s Crimea referendum and sanctions against Russia for its actions in Ukraine on Bloomberg Television’s “On The Move.”

Us don't really know what is going to happen on sunday.

And in the following monday.

The worst-case scenario and a best case scenario.

How do you see it panning out?

It will be a very volatile weekend.

A lot will depend on the stance russia will take on the results of the referendum.

If they enact crimea and make it part of the russian federation, this will lead to sanctions.

It will be dramatic action on the side of both the you -- united states and the european union.

They can be quite united in this way.

If russia decides to stand back, understanding that crimea wants to be independent but will leave it in limbo in a way and leave some negotiating in the mainland, perhaps coming back for a new deal or postponing presidential elections.

It is so very difficult to understand the plan that putin wants to put in place.

It is too soon yet?

Is there real pressure that western leaders can do because the rhetoric has been so strong?

I think there still a chance.

I think russian now is looking at proposals to the crisis.

It is positive compared to just moving your troops into crimea.

There is room for negotiation.

Russia refuses to negotiate with ukrainian government.

They want to recraft the borders and the security order only western powers and the nine states in europe.

The states in europe are so united.

It weakens russia's position and puts more pressure on ukraine.

It may stabilize the situation overall.

Bookend of sanctions are we looking at?

Russia was talking tough.

They were talking about not honoring some of their loans and bring in london to a standstill.

We understand that there may be some asymmetrical repercussions.

Who has the most to lose?

Depending on the take of russia, though we different layers of sanctions.

Both the u.s. and europe will try to target political leadership, those who are in charge of annexation and military operations.

This will be visa's and asset freezes.

This will not immediately impact the moneys.

If russia moves forward and increases its troops, this can lead to stopping military contracts.

This could lead to looking into gas and oil trade that is taking place.

Germany has said they are ready to pay the price.

We understand that what is happening in europe is a stress to european security.

They're willing to pay the price and it could hit the economy of the european union.

The predictions and the russian economy needs investment.

They need the opposite of what the kremlin is doing right now

This text has been automatically generated. It may not be 100% accurate.

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