How Russia Sanctions Could Impact American Consumers

As Russia launched its invasion of Ukraine, Western nations — including the United States — issued a round of sanctions aimed at cutting off Russian financial institutions, restricting debt and equity for Russian corporations, and targeting certain Russian elites.

With a GDP of $1.48 trillion, Russia is the world’s eleventh largest economy — smaller than the United Kingdom, Italy, France, and other countries with fewer human and natural resources. With a GDP per capita of just over $10,000 — compared to $63,500 for the United States and $45,700 for Germany — Russia also punches below its weight in terms of economic productivity per citizen.

However, sanctions against Russia will still have tangible repercussions for Western consumers.

For one, Russia contributes greatly to the global supply of energy. Each year, Russia exports crude petroleum, refined petroleum, petroleum gas, and coal briquettes to the tune of $123 billion, $66.2 billion, $26.3 billion, and $17.6 billion respectively.

“Russia is incredibly unimportant in the global economy except for oil and gas,” Harvard economist and former Obama administration adviser Jason Furman told The New York Times earlier this week. “It’s basically a big gas station.” – READ MORE