In response to Russia’s 2022 war on Ukraine, a broad, multilateral coalition, including the United States, the European Union (EU), the United Kingdom, Canada, Australia, Japan, and others, imposed sweeping new sanctions on Russia. The sanctions—unprecedented in terms of scope, coordination, and speed—target the overseas wealth and economic activity of Russia’s elites and decisionmakers. The sanctions also target Russia’s financial and energy sectors and access to western technology, among other financial and trade tools. The sanctions have created challenges for Russia but to date, have not delivered the economic “knock out” that many predicted. New sanctions on Russian oil exports implemented in December 2022 may increase economic pressure on the government.
Although sanctions are a foreign policy tool deployed in several contexts, the coordinated sanctions on Russia are significant to the global economy due to the size of Russia’s economy—before the war, the 11th largest in 2021—and Russia’s integration in the global economy. In addition to its oil and natural gas exports, Russia has been a key global supplier of several metals (titanium, aluminum, and nickel), chemical gases used in semiconductor production, wheat, and fertilizers, among other commodities. Many U.S. and international firms had also established factories, joint ventures, and retail operations in Russia, and face losses as they exit the Russian market.
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