The potential long-term impact of unprecedented economic sanctions on Russia

While the use of economic sanctions for political means is no new strategy, the magnitude of the sanctions imposed on Russia in the wake of Putin’s invasion of neighbouring Ukraine is unprecedented, says Professor Sebastien Betermier in an interview with CTV Montreal. Perhaps most impactful is the freeze on Russian Central Bank assets and SWIFT, a financial messaging platform used by banks to make international transactions. Not only will these freezes impact foreign exchange and interest rates, but without access to SWIFT, countries like Russia could feel encouraged to develop their own alternatives, posing risks to the financial telecom giant. Combined with a host of western firms like Apple, Pepsi and McDonald’s exiting the country, these sanctions could have real negative long-term consequences for the Russian economy.