Jason Lange and David Lawder

WASHINGTON, (Reuters) – The United States will impose more sanctions on Russia if Moscow intensifies the conflict in Ukraine. This would prevent key Russian financial institutions from accessing U.S. dollars and other global markets to trade, finance, and energy exports, as well as depriving them of their ability to obtain U.S. currency transactions.

However, the United States of America and its allies had never tried to eliminate a $1.5 billion economy from global commerce. And it’s not clear how much pressure any unified Western sanctions will put on Moscow.

According to the World Bank’s and United Nations Trade Data, China emerged as its most important export destination since 2014 when less restrictive sanctions were in place after Russia annexed Crimea.

Russia may seek to increase its trade relations with Beijing, in order to circumvent the sanctions, Harry Broadman, an ex-trade negotiator for America and World Bank official, stated that new sanctions might prompt Russia.

Broadman stated that the problem with sanctions, particularly if they involve an oil producer like Russia, is leakage within the system. Broadman said that China may claim, “We are going to purchase oil on the open marketplace and if it is Russian oil, then so be it.”

GRAPHIC – Russia’s top export destinations

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The White House announced Monday that any Russian institution operating in the financial sector will be subject to further sanctions. This was in accordance with President Joe Biden’s executive order. It noted that over 80% of Russia’s foreign currency transactions are done in dollars and more than half its trade is conducted in dollars.

Biden on Tuesday announced an initial set of sanctions to punish Russia for placing troops in two areas in the eastern Ukraine.

It may not be easy, but Russia is one of the largest exporters worldwide. The oil price reached new levels Tuesday that have not been seen since 2014

According to data from the World Bank, Russia was responsible for 1.9% global trade in 2020. This is down from 3.8% in 2013. Between South Korea and Brazil, its 2020 GDP ranks 11th in the world.

An analysis of Russian trade data from the World Bank’s World International Trade Solution Database shows that Russia has less dependence on foreign trade over the last 20 years.

GRAPHIC-Russia’s trade as a part

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Russia has seen its export destinations change as well. China is now the number one export destination. The Netherlands used to be the most popular in 2010 due to its oil trade. While Russia’s imports from Belarus have increased, Germany’s and Britain’s Russian purchases have been steady.

China is Russia’s largest supplier of imported goods. Top categories include mobile phones, electronics, mobile phone accessories, and telecommunications equipment. Since 2014, its share of Russian imports increased while that from Germany has declined significantly. Over the last decade, Ukraine’s exports from China have fallen significantly while Belarus’ shipments has remained steady.

According to World Bank data, the top three exports from Ukraine to Russia for 2020 were aluminum oxide and railway equipment.

GRAPHIC — Russia’s Top Exporters

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