Sanctions on Russia will impact the global economy

Author:  Prof. Engr. Zamir Ahmed Awan, Sinologist (ex-Diplomat), Editor, Analyst, Non-Resident Fellow of CCG (Center for China and Globalization), National University of Sciences and Technology (NUST), Islamabad, Pakistan. (E-mail:

An instant outcome of new sanctions on Russia has resulted in a hike in the oil prices in the international market. Nobody knows what will be the upper limit of oil prices in the days to come, but, it definitely, will be beyond our affordability. All nations that depend on imported oil will suffer. It is not only to harm Russia but, more harmful to Europe. The whole of Europe was dependent on Russian oil and gas to meet their energy need. The cut-off of Russian energy to Europe will definitely hurt Europe. The global economy was facing severe challenges already, COVID-19 has also damaged the global economy, but, the oil prices hike, may have an even worst impact on the global economy. 

President Biden announced harsh new sanctions on Tuesday aimed at punishing Russia for what he called “the beginning of a Russian invasion of Ukraine,” joining European leaders in imposing severe economic consequences on Russia over the crisis. Here are the latest updates.

Biden condemned President Vladimir Putin of Russia, saying that the Russian action was “a flagrant violation of international law and demands a firm response from the international community.”

By blocking two Russian financial institutions and imposing sanctions on Russian debt, he said, “we’ve cut off Russia’s government from Western finance.” Russian elites and their families will also be punished. The U.S. Senate began working on a multipronged legislative response.

Biden’s announcement came less than a day after Putin issued a decree sending troops into two separatist-held regions in Ukraine. Russia’s parliament authorized the use of military force abroad on Tuesday.

Germany will block the Nord Stream 2 gas pipeline, a major project in partnership with Russia. Britain said it would block all business with the separatist regions, Donetsk and Luhansk, in what Prime Minister Boris Johnson called a “first tranche” of actions. E.U. sanctions include asset freezes and travel bans.


Two European officials said on Tuesday that Russia had sent troops into Ukraine, but Russia’s Foreign Ministry denied having done so. Our correspondent talked to Ukrainians who were boarding trains out of the separatist areas with weary resignation.

Propaganda has been ramping up for days in Russia, putting in place the rationale for a possible invasion.

Some more nations may jump into the sanctions game soon.

Russian reaction is awaited and may surprise the whole world.

Oil prices jumped to nearly $100 a barrel yesterday, and big banks are bracing for impacts. Stocks fell.

Since 1966, the Security Council has established 30 sanctions regimes, in Southern Rhodesia, South Africa, the former Yugoslavia (2), Haiti, Iraq (2), Angola, Rwanda, Sierra Leone, Somalia and Eritrea, Eritrea and Ethiopia, Liberia (3), DRC, Côte d’Ivoire, Sudan, Lebanon, DPRK, Iran, Libya (2), Guinea-Bissau, CAR, Yemen, South Sudan, and Mali, as well as against ISIL (Da’esh) and Al-Qaida and the Taliban. But none of any regimes bowed down and never achieved the desired goals of sanctions.  

In fact, the West has been using sanctions as a political tool against their adversaries. Especially during the cold-war era, most of the sanctions were biased and unjustified. Politically motivated sanctions failed to coerce such countries. Yet, sanctions have many side effects and harm many innocent people around the globe. The current sanction of Afghanistan is causing a serious threat to half of the 40 million people of the country. Sanctions were always proved counter-productive.

The newly imposed sanctions on Russia will force the creation of new blocks and new alliances, leading toward a polarized world. The existing geopolitics is already volatile and sanctions will aggregate the situation further. 

While, it desired to promote peace, understanding, and harmony. Sanctions at this critical moment were not desired and will complicate the already deteriorating situation further. It is appealed to all peace-loving nations and individuals to oppose any attempt to spoil global peace and developments. Sanctions are harmful to everyone and may not be limited to Russia only. Yet, the Russian reaction is awaited, but, appeal to everyone to calm down and sort the issues through political and diplomatic dialogue under the UN charter with sincerity and honesty. As long as there is a will, there is a way. There is nothing as a matter of ego. We need to serve and protect humankind and respect humanity. 

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