Can sanctions change Putin’s behavior? The US’ President Biden announces ‘first tranche’ of sanctions on Russia including sanctions on Russian sovereign debt.
But let’s keep in mind 2 things:
1) Russia’s Debt to GDP ratio is ~18% vs US’s 133%;
2) To make himself independent of the West, Putin has stopped investing Russian currency reserves in US government bonds. As a result, Russia now holds only $3.9bn in US Treasuries. However, Russian foreign reserve holdings of US Treasuries used to be as high as $176bn in 2010… Putin has shifted many reserves into gold. Moreover, these actions point to a deliberate attempt to thwart sanctions. If Putin does not rely on the global financial system. He won’t care about the international sanctions.
Without Boots on the Ground. As they say, Putin will not care about the international community’s feelings regarding Ukraine. Putin, wants to expand his border and increase his country’s value by acquiring the industry and people of Ukraine. No different from a hostile takeover, where the target company has limited resources for defense.
Can sanctions change Putin’s behavior?
Death of Nathan Bedford Forrest’s Brother at the Battle of Okolona
