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Write 5 pages with APA style on The US Imposed Sanctions and Their Effects on Relations with the EU. The economic impacts of the sanctions are widely felt in the country and the European Union countries. Germany being the major affected country. The Russian Federation has put necessary policies to retaliate against some of the agreements that have a devastating effect on the economy. These sanctions have affected the European Union for the last ten years as they have achieved various political objectives through trade control. In the modern trend, the US has developed lots of agreements that affect various countries in the Middle East such as Afghanistan and Zimbabwe in Africa. Along with these sanctions, they have devised various global trade restrictions in which they incorporate military submission in specified cases. This paper will analyze the effects of the Russian sanctions on the European Union countries and the possible effects of introducing different policies.

The Russian economy is experiencing a recess in its economy that worsens each day. The Russian currency, ruble, has lost its value consistently due to the economic crisis and trade has become difficult and expensive to conduct. Various economists have analyzed the economy and suggested that the GDP of the country may deteriorate by 0.8% each fiscal year (Georgious and Mitchell, 2009, p.27). Some of these effects are short-run whereas others are long run. Short-run effects include the collapse of the prices of oil. Low prices of oil are particularly detrimental to the economy as these prices destabilize Russia, as well as other economies that largely depend on Russian produce. The fall in oil prices also supplements the fall in the ruble currency in which the inflation level is affected. Due to the currency’s depreciation, the imports tend to become more expensive and the exports are relatively cheap. This worsening of the economy is, however, short run. Some of the large economies in Asia are taking advantage of this situation especially China (Belopolsky, 2009, p.35). China has made big steps in the last few years to ensure it becomes an energy market for Russia, and other countries.

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