(TheRedWire.com) – The potential for serious military conflict or all-out war in Ukraine persists. Russia continues to add to its massive military show of force along the Russia/Ukrainian border as Russian President Vladimir Putin says he will not tolerate NATO along his country’s western border. On Thursday, January 20, the Biden administration again warned Russia if it invades Ukraine, it will face crippling sanctions unlike any ever seen before. Additionally, the US is sending military assets and up to 50,000 US soldiers to the region. However, the administration is proposing another unprecedented and risky threat.
The White House says it told US banks and microchip makers it might place heavy import/export restrictions on Russia if the former Soviet country invaded its neighbor. The US believes it can severely impact Russian civil aviation, maritime, artificial intelligence, military capabilities, and other Russian technologies by hitting Moscow with those severe sanctions.
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If the US hits Russia’s finance system, it’s likely to increase Russian inflation and drive down the value of its currency, the ruble. Long term, import/export controls would drive up the price of consumer goods and electronics on Russian citizens.
Russian officials downplayed the threats, saying their own companies had begun making their own chips and components. In addition, China, a Russian ally, could ease the impact of sanctions imposed by the United States. US and European companies also express concern that Russia could retaliate by developing their own technologies and reducing their dependence on American technologies. That would only serve to hurt the US economy and businesses.
While the threat may work in the short term, could it cause more harm than good long-term? Some say the US can only use the threat so many times before other countries wise up and seek out other alternatives. Russia says if the US and Europe move forward with sanctions, it would be akin to severing relations.
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