World News for Students of English

29-05-2023 15:00

Sanctioning Russia has become a high-return investment.

The G7 has just decided to tighten the sanctions on Moscow to make it more difficult for President Vladimir Putin to finance his war on Ukraine. As months go by, turning the screw on Russia is becoming easier, the sanctions keep hurting the Russian economy while their impact on Europe has become marginal. In other words, it’s worth it.

Undoubtedly, sanctions decided since February 2022 have hit Russia hard. The country’s exports of goods fell 28% in the first quarter of the year as Europe’s no longer buying Russian oil and gas. However, sanctions need to be tightened regularly, because targeted countries can adapt over time. It’s becoming easier for Europe because Russia no longer matters economically and Europe no longer depends on its energy. Russia itself only accounts for 2% of EU exports, down by half compared to 2021.

Now, sanctioning Russia relies on a sound cost-benefit analysis.

Difficult words: return investment (how much money is made or lost on an investment or project after accounting for its cost), turn the screw (to increase the pressure), cost-benefit analysis (comparing the costs and benefits associated with a project or business).

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