EU sanctions against Russia: Who will feel the pain?

EU sanctions against Russia: Who will feel the pain?

Press quote (Voice of America)
29 July 2014

London's financial sector, Germany's energy imports and France's defense industry all count on doing business with Russia. But Ian Bond, director of foreign policy at the London-based Centre for European Reform, predicts the new measures will not be tough enough.

"The direct pain is going to be pretty limited.  It looks as though these are technically tier-three sanctions.  They are very much at the bottom end of what could be done under tier three," says Bond.

Unlike Western sanctions against Iran, Bond does not think these measures will bring Moscow to the negotiating table, and may harden its stance on Ukraine.  An arms embargo, for example, is expected to target future deals with Russia, not past contracts like France's agreement to sell a pair of Mistral warships to Moscow.