U.S. imposes economic sanctions on Russia

SOUTH BEND, Ind. --- President Biden announces new sanctions on Russia this afternoon — amid the Ukraine crisis.

The decision comes after Putin ordered troops into parts of Eastern Ukraine, which the White House says is the beginning of an invasion.

The new sanctions include blocking two Russian financial institutions, including Russia’s military bank— essentially cutting Russia’s government from Western financing.

While sanctions have worked in the past, experts tell ABC57 they don’t believe these alone will make a huge impact on Vladimir Putin’s actions.

“Let me be clear. These are totally defensive moves on our part. We have no intention of fighting Russia," said President Biden.

President Biden emphasizing he does not want to deploy U.S. troops to fight in Ukraine -- hoping this first round of sanctions will dissuade Russia from invading.

Economist Michael Hicks says the orders mainly impact members of Vladimir Putins inner circle.

“We can restrict the flow of cash. We can kick them out of the country. We can prevent them from trading anything. So, if they have money in a swiss bank account or german bank account, we can freeze that money," said Michael Hicks, Economist at Ball State University.

But, Hicks expects the White House will have to enact additional sanctions.

“We’re considering a third sanction which may be a little bit more painful which would be to restrict them from what’s called swift, which is an electronic international banking transaction, so they’d be reduced to cash transactions for much of what they do," said Hicks.

Although the White House has not discussed when a next round of sanctions could take effect.

"Right now the goal is to get him not to continue the invasion of Ukraine," said Hicks.

While it’s not an immediate issue, Hicks said long-term sanctions could impact the stock market, hitting some people’s 401ks.