Falling Oil Prices, Sanctions, and Counter-Sanctions for a Deeply Troubled Russian Economy

By Jenny Park

Russia’s current struggling economy illustrates the severe impact of geopolitical risks. Many factors contributed to this result, including international economic and administrative sanctions as well as coinciding falling oil prices. Russia has responded to these sanctions by imposing counter-sanctions, specifically restrictions on imports and exports. These counter-sanctions have contributed to inflation and a subsequent depreciation of the Russian ruble. Investopedia elaborates on these factors in depth.