Ending European Union Sanctions on Russia
Since the results of the election came out, America has never been more divided. One of the issues that are on most people’s mind is world trade after Donald Trump enters office. This includes trading with Russia.
Trade in Russia and many western countries is taking place, but there are sanctions placed on Russia by EU. These economic sanctions are from 2014 and are up for renewal in January 2017. The European Union would be meeting shortly after Trump inauguration as the USA president. The renewal of the sanctions would hit the Russian economy hard. We saw this with the original sanctions, as the sanctions were designed to punish Russia for annexing Crimea, and invading the Ukraine in 2014.
During 2015, the economic growth of Russia fell by 3.7%. The largest oil producer in the World is in Russia and will see a 1.2% of shrinkage just this year. This shrinkage is result of the trading sanctions. This is going to hurt Russia’s recovery, but the overall higher prices of oil are helping a tiny bit.
United States and Russian Relationship Plays a Role
The question then becomes, how will the US affect the Russian Sanctions? The President of Russia, Vladimir Putin has said that he is hoping to build trust with the US, and improve their overall relations after Trump is President in January. Putin has also stated that he looks forward to having a good personal relationship with Trump.
Having a better relationship and trade agreements with Russia could benefit both countries in the long run. However, the last relationship with Russia did not work out for either country.
There are also concerns about how the EU would see this new relationship. Some people believe that the partnership between the USA and Russia would be the spark of World War III. However, Putin has started that Russia wants peace, and it is no longer the Soviet Union. He also has stated that Russia does not want to enter a new arms race.
It is very unclear at the moment if the EU is going to keep the trade sanctions, and what changes will be made if the sanctions stand. There are also many questions about if the United States would enter trade agreements under Trump. The relationship between the US, and Russia at the moment is not friendly. The next questions are, can they have a friendly relationship in the near future, and would this new relationship be the answer to the EU trade sanctions. It’s too early to say, but we could see the US trading with Russia in the near future.
Wall-Street.com will keep you updated with the latest news about the possible US, Russia relationship, and the EU Sanctions as more information is released.