The U.S.–EU sanctions, as well as those of other countries, including Japan and Norway, had been imposed at a time of high oil prices and expectations of a continuing tight market. But then in late 2014 the oil price collapsed, delivering a new shock to a Russian economy and national budget so heavily dependent on oil. A severe crisis seemed inevitable. And indeed, the initial impact was great—capital flight, drying up of both foreign and domestic investment, loss of access to international capital markets, plummeting spending by consumers, and a declining GDP.
