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Western Sanctions on Russia: Impact and Responses

Economic Consequences

In response to Russia's annexation of Crimea and military intervention in eastern Ukraine, Western powers imposed a series of sanctions on Russia's economy. The measures, which include a boycott on food and agricultural products from the EU and US, have had a significant impact on Russia's real disposable income, which has decreased by 1% compared to 2021.

Business Responses

Despite the sanctions, over 2,100 multinational corporations have remained in Russia since 2022, according to the Kyiv School of Economics. This suggests that some businesses are willing to weather the economic consequences in order to maintain their presence in the Russian market.

Political Reactions

Western governments have also increased their diplomatic and political pressure on Russia. As part of these efforts, the US has imposed sanctions on Russian individuals and entities, and the EU has suspended talks on a visa agreement with Russia.