US, allies weaponizing sanctions to curb Russian aggression

WASHINGTON (AP) — President Joe Biden and U.S. allies in a matter of days weaponized the global economy against Russia for invading Ukraine, and the resulting destruction has been devastatingly fast.

The sanctions almost instantly put Russian President Vladimir Putin on the defensive against skyrocketing inflation. Russia's central bank, unable to tap foreign reserves, tried to use what resources it had to slow the ruble's steep decline.

It goes unchallenged among economists that Russia's $1.5 trillion economy, previously about 7% the size of the U.S. economy, will shrivel further in ways that could be unprecedented for a nuclear power.

There is a push for even greater financial penalties. Ukrainian parliament member Oleksandra Ustinova met with U.S. senators on Tuesday to advocate for more sanctions immediately if Ukraine is to hold off Russian attacks.

"It works," Ustinova said of the sanctions while sitting in the offices of Pennsylvania Sen. Pat Toomey. “In Ukraine, people are standing in line to get guns. In Russia, people are standing at the ATM machines because they understand they might not be able to get this money in two days, or, it will be like twice as less.”

The U.S. and its allies have retaliated against Russia with a series of financial attacks, reflecting a massive change in how conflicts can be waged in a world that is globalized, digital and highly dependent on accessing money.

There have been economic targets in the past that depended on military maneuvers such as factory bombings, blockades and the capture of strategic resources. But the waves of sanctions unleashed over the past week have demonstrated how financial markets can respond faster than setting up conventional weapons.

The sanctions also are a substitute for direct military action...