Sanctions Won't Deter Putin, UC Berkeley Economist Warns: Report

Berkeley CA

28 February, 2022

12:28 PM

Description

BERKELEY, CA — Economic sanctions are a good first step. Just don't expect them to stop Vladimir Putin's geopolitical ambitions anytime soon. That's according to a UC Berkeley economist, who described unified efforts to cripple Russia's economy as "inconvenient" to the Russian autocrat whose Ukrainian military escapade has plunged Europe into its most critical post-World War II crisis, ABC 7 reports. The United States on Saturday reached an agreement with European nations to cut Russian banks off from SWIFT, a global financial network that plays a critical role in trade, The Associated Press reported. "Putin embarked on a path aiming to destroy Ukraine, but what he is also doing, in fact, is destroying the future of his own country," EU Commission President Ursula von der Leyen said, according to the AP. All indications are that the sanctions have roiled Moscow, crashing the ruble and triggering a closure of the nation's stock market. But a cratering economy is unlikely to alter Putin's calculus, UC Berkeley economics professor Yuriy Gorodnichenko told the television station. Gorodnichenko is from Ukraine. "Imagine your bank calls you and says we are going to cancel your credit card. It is inconvenient, but is it going to change your behavior in any fundamental way? Not really," he said. "Removing Russia from SWIFT is a move in the right direction because we should not use the international financial system to fund war." Read more at ABC 7