Introduction The economic sanctions against Russia were applied by the USA and the European and EU-based countries in 2014 when the Crimean and later Ukrainian crises occurred. The first sanctions were applied after the annexation of Crimea by Russia; the next rounds of sanctions were imposed after the escalation of the Ukrainian crisis in the Donbass area (Bond, Odendahl, & Rankin, 2015). So far, three rounds of sanctions were imposed by the USA, EU, and other countries (e.g. Australia, Canada). In 2014, Russia imposed sanctions against American and Canadian individuals, as well as banned food imports from the USA, EU countries, and others. Importance of the Topic The sanctions have had a severe impact on the economy of Russia and Russian rouble; they have triggered a financial crisis that began in 2014 and has not stopped since. These series of events demonstrate how local and international conflicts can influence foreign trade and what crises and losses they might cause. Analysis of the sanctions and their impact on the USA, EU, and Russia is crucial to understand whether the sanctions have helped de-escalate the conflict or they have brought more harm and losses both to the business and to the economy of all states that took part in rounds of sanctions. The analysis will also demonstrate how economies can be intertwined and dependent on each other. The efficiency of sanctions is not supported by some of the states; that is why it is necessary to understand why some states believe sanctions to be a good tool against Russia’s invasion of Ukraine, while others point out their inefficiency or aim to veto them. I selected this topic because the armed conflict in Ukraine has had a tremendous impact on the world; it has shown that new type of Cold War is possible. Moreover, it is still unclear if the sanctions have been the right choice as the conflict in Ukraine continues, and Crimea is still annexed by Russia. In this paper, I will analyze and discuss the details of the crisis and how it has lead to a downgrade in the relationships between the USA, EU, and Russia. Brief Historical Background In November 2013, after former Ukrainian President Viktor Yanukovych had stated that preparations for Ukraine–European Union Association Agreement were ceased, demonstrations began in Kyiv, the capital city of Ukraine. In February 2014, Russian military troops were seen in Crimea; in March, the annexation of Crimea began with the Crimean referendum and declaration of the independence of Crimea. Later Crimea became a federal subject of Russia (Black & Johns, 2016). In April 2014, pro-Russian protesters in the Donbass area seized some of the government buildings and declared that two republics would be formed: the Donetsk People’s Republic and the Lugansk People’s Republic (Black & Johns, 2016). The Ukrainian government began an armed operation against the rebels known as “anti-terrorist operation” (ATO). Russian support of rebels in the Donbass area had different forms: Russian volunteers were sent to the war, Russia traded weapons and armoured vehicles to rebels, and, as some stated, Russia had also sent its military troops to Ukraine, although it never explicitly admitted