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News: The US, UK, and the EU have imposed several types of sanctions on Russia for going to war against Ukraine. This could prove to be detrimental to the country.
What do you mean by economic sanctions?
Economic sanctions are penalties or bans that are levied against a country to push it to modify its strategic decisions. Sanctions can be of the following types:
1) Full sanctions: It includes withdrawal of customary trade and financial relations. It could result in cutting economic ties in every respect including terms of trade, financial assistance, transit support, travel bans, asset freezes, and trade restrictions.
2) Targeted sanctions: It includes restricting transactions with certain businesses, groups, or individuals.
| Read – Economic Sanctions and their Effectiveness |
How do sanctions impact an economy?
Supply chain disruptions due to import restrictions. It can cripple the economy which is dependent upon imports of critical raw material.
It becomes very difficult to reach out to the export markets.
What are the economic sanctions against Russia?
Assets of some major Russian banks have been frozen and they have been banned from the SWIFT financial messaging service.
Sanctions have been levied on the Russian Direct Investment Fund and some Russian wealthiest people.
How India managed curbs after Pokhran-II?
The government appealed to Non-Resident Indians for assistance to replace India’s external assistance of more than $100 billion. As a result, NRIs’ subscription to government bonds was more than double the annual foreign assistance.
Furthermore, none of the scientists involved were trained abroad, thus India was able to show its scientific and economic independence.
Source: This post is based on the article “A safety net for students abroad” published in Indian Express on 7th March 2022.
