A test of strength. The escalation of the crisis in Russian-American relations Cover Image

A test of strength. The escalation of the crisis in Russian-American relations
A test of strength. The escalation of the crisis in Russian-American relations

Author(s): Marek Menkiszak, Witold Rodkiewicz
Subject(s): Economic policy, International relations/trade, Geopolitics
Published by: Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Russian-American relations
Summary/Abstract: On 6 April, the Trump administration introduced additional, more severe sanctions against Russia, covering 24 people and 14 companies: Russian oligarchs, the businesses they run, senior government officials and heads of state corporations, and (again) the Russian state arms company Rosoboroneksport. The immediate consequence of the new sanctions has been a downturn on the Russian stock market and the weakening of the rouble, as well as financial problems for the companies sanctioned, especially those belonging to the oligarch Oleg Deripaska. In the longer term the Russian oligarchs and their companies which conduct extensive activity abroad will find that the sanctions hamper their operations, and as a result, their dependence on the Kremlin will increase. On the other hand, the Kremlin will have increasing difficulty in recouping the affected oligarchs’ losses, which will lead to an increase in tensions within the elite, as well as a rise in social discontent, which will make the functioning of Putin’s regime more costly.

  • Page Count: 10
  • Publication Year: 2018
  • Language: English