How the Ruble and Russia’s Economy Have Been Stressed by Sanctions

As Russia massed troops near its border with Ukraine early in 2022, the US, the European Union and their allies held out hope that threats of massive sanctions might deter an invasion. Once hostilities began, there was a sense that sanctions could force an immediate economic crisis in Russia and a quick end to the war. With fighting now in its second year, the revised thinking is that prolonged sanctions, including restrictions on essential Russian imports, will have a cumulative effect, eventually forcing President Vladimir Putin into deciding between continuing the war and saving his economy. A weakened ruble is one recent sign of stress on Russia’s economy.

As of July, the US had sanctions in place against more than 3,600 individuals, entities, vessels and aircraft, according to Castellum.AI, a compliance screening company that maintains count. Targets of US sanctions included the top 10 Russian-owned banks, military manufacturers and government leaders all the way up to Putin. (Some of these sanctions traced back to 2014, when Russia seized Ukraine’s Crimea peninsula.) The number of EU sanctions exceeded 1,800. Other nations with sanctions in place against Russia included Switzerland, Canada, the UK and Australia.