The United Kingdom should be prepared to pay the economic price for Russia`s sanctions, Philip Hammond has warned.He has suggested all of Europe will feel the after effects of large financial sanctions on Russia. Philip Hammond suggests that the UK will feel from the sanctions will be no worse than other EU member states and that it is essential for the sanctions in order to curb Russian aggression.Full details regarding the EU sanctions on Russia will be announced on Wednesday. It is thought the latest sanctions will target Russian oligarchs with a new round of asset freezes and even possible travel bans.The EU is thought to face increased oil and gas prices due to suspected sanctions on the oil sector. Further sanctions are also going to be aimed at defence equipment and sensitive technologies.
Are the sanctions working?
The idea of sanctions is to apply pressure on the Russian banks and top businesses owners. These people will feel the pressure of sanctions with many billions of dollars being lost. The central bank in Russia is having to spend many billions of dollars in order to prop up the rouble.The sanctions are designed to make Russia understand that they cant carry on supporting the Rebels. The sanctions will hurt the UK and Europe but they will hurt Russia far more.The big economies of the EU will share the pain from the sanctions but it will be worth it, taking a stand to the Russian aggression in Ukraine will benefit the civilised world and we must be prepared to pay the price for doing so.If you found this economy blog interesting you can find more great articles in our business and economy blog.