HARRISBURG, Pa. — The latest set of sanctions placed on Russia by the United States have targeted Russian President Vladimir Putin's allies.
Sanctions have been placed on Putin's press secretary, and wealthy individuals who are also allies of Putin. In addition to this, the U.S. State Department has announced it will impose visa bans on 19 Russian oligarchs, their family members, and known associates.
Western leaders have all come together to impose these sanctions in an effort to stop Russia from invading Ukraine. The United Kingdom, for example, has frozen Russian assets, and placed limits on deposits Russians can make at banks in the UK.
The European Union has said it would target 70% of Russia's banking markets, state-owned firms, and defense firms as well as ban aircraft and equipment to Russian airlines.
It's important to remember these sanctions do not only affect Russian leaders but the entire nation. Reports show long lines forming near ATMs in Russia with people set to withdraw money from their bank accounts in fear of breakdowns in electronic banking.
The value of the ruble, the Russian currency, has now decreased to a record low of less than one cent.
Terrill Frantz, associate professor of e-commerce and cybersecurity at Harrisburg University, says the effectiveness of the current sanctions work greatly because of the unity of Western leaders.
Frantz goes on to explain in comparison to fast food chains. If one chain sanctions French fries but the other does not, the sanction may not be effective, however, if many do, you'll see the impact.
“All of the fast food restaurants seem to be cooperating here," he said. "You’re cutting off your supply of French fries, that will be effective and that’s what it really feels like so far, that the sanctions against Russia could very well have a pretty significant impact on that country.”
What remains to be seen, he says, is the impact of sanctioning all financial entities.
"We do have things like cryptocurrencies now, which are a very interesting dynamic," he said. "It is very difficult to sanction a distributed currency like that, a cryptocurrency. Some of the providers of these cryptocurrencies could by choice refuse to do business with individuals in a country like Russia but even that would be difficult to control."
Russia has also fought against these sanctions by blocking interest payments to foreign investors who hold government bonds and has threatened to reduce or shut off gas supplies to Europe and more.