Economic sanctions on a country could have collateral impact on others, says Nirmala Sitharaman

Economic sanctions imposed on one country could have a collateral impact on others, said Finance Minister Nirmala Sitharaman on Wednesday, according to PTI.

“Sanction always has an impact on not just the country on which it is imposed but on many other nations,” she said. “[And] unintended consequences do bear an immediate and strong impact on countries in this digitally connected world.”

Sitharaman made the remarks in reference to economic sanctions imposed on Russia due to its invasion of Ukraine. She was speaking at an event at Stanford University in California.

Several countries, including the United States, the United Kingdom and Canada have imposed sanctions on Moscow because of its offensive against Ukraine. Some of these measures target Russian state-owned banks and restrict the country’s ability to carry out transactions in major currencies, making it difficult for Moscow to trade with other countries.

The international sanctions on Moscow have resulted in record-high prices of crude oil and fear of supply chain disruptions.

During Wednesday’s interaction, Sitharaman also said India took into consideration its economic and security interests before announcing its stand on the Russia-Ukraine conflict.

“So, India’s position is not just for its economic interests, but also its security interests,” Sitharaman said, according to PTI. “The balance that India has taken in every decision in this context... [is] because of the geopolitical location of India,” she said.

Since the attack on Ukraine began on February 24, India has abstained from voting on multiple United Nations resolutions condemning Russia’s actions. The government has said that it is against the escalation of conflict in Ukraine and that dialogue and diplomacy are the right answers to any disputes.

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