Escalation of the Crimean conflict and the risk of an invasion by Russian troops further into Ukraine have raised a concern about international mechanisms of deterrence, economic sanctions being among them.
Although Brussels and Washington made rather harsh statements at the outset of the crisis, it is quite improbable that they will impose heavy sanctions on Moscow. This means that the international community lacks an adequate response to Russia. The Russian Federation is the third largest trading partner with the European Union (next to the US and China) with $417.4 billion in trade in 2013. Therefore economic sanctions could have an adverse effect on Europe. Considering the current state of several European economies, the results would be grave.
Russia is one of the world’s biggest oil producing countries and the world’s second largest oil exporter. It supplies most of its oil and gas to the European Union. The only way to affect the Russian economy and deter Putin would be to target Russia’s energy sector. The European Union would have to refuse to purchase Russian natural gas, which presently they are not be able to do. In 2013, Russia’s earnings from oil and natural gas exports amounted to $229 billion.