The Economic Warfare – U.S., Russia, and its Allies

After imposing sanctions on 11 Russian and Ukrainian officials, who according to the U.S. President Barack Obama are responsible for Russia’s military incursion to Crimea, Obama declared that he is ready to impose further sanctions if the situation does not improve in Crimea. At the same time, German Chancellor Angela Merkel claimed that the European Union is also ready to impose economic sanctions against Russia if the situation does not escalate.

President Barack Obama waves as he walks to a dinner event with G-20 leaders at Peterhof Palace in Saint Petersburg, Russia, Sept. 5, 2013. Courtesy of the White House of the U.S.

President Barack Obama waves as he walks to a dinner event with G-20 leaders at Peterhof Palace in Saint Petersburg, Russia, Sept. 5, 2013. Courtesy of the White House of the U.S.

However, the growing pressure for a tougher response to the crisis, made President Obama extend the financial sanctions against Russia to include wealthy supporters of Vladimir Putin.

“We have continued to be deeply concerned by events in Ukraine,” said Obama. “We have seen a illegal referendum in Crimea, an illegitimate move by the Russians to annex Crimea and dangerous risks of escalation. Because of these choices the U.S. is today moving to impose additional costs on Russia. We are imposing sanctions against more senior officials of the Russian government and in addition we are sanctioning a number of other individuals with substantial resources and influence.”

Also Read: Russia Announces Counter-Sanctions Against U.S. Officials

Meanwhile, David Cameron, British Prime Minister, claimed that more names, another 12, would be added to the black list of those facing travel bans and asset freezes.

Nevertheless, the rising sanctions against the Russia are bringing the U.S. closer to a World War III. Different from previous World Wars this time seems that the battle field will involve financial tools rather than conventional weapons.

Also Read: Finland: To Sanction Or Not To Sanction Russia, That’s the Question

Kevin Freeman, one of the most famous economists with an expertise in financial markets, warned that that the situation is serious. He claims, “The real risk is if we go after them with economic weapons, they come back after us and this creates World War III. This is a very tough game of chicken that we are playing, and Putin is serious!”

Moreover, Freeman also argues that this is nothing new, since the U.S. has seen a similar purposeful attack by China, Russia and Al Qaeda. “Our enemies almost made it happen in 2008. The near economic collapse of the United States in 2008 was not due to widespread failures in government regulations, but a planned attack to destroy our nation perpetrated by both China and Russia”, claims Freeman.

About Edona Bajrami

Edona is an analyst of the issues related to Global Political Economy at FINNBAY. She specialized in international political economy first at Rochester Institute of Technology, New York and then the University of Kent in Brussels.

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