Amid the Russia-Ukraine conflict, Western countries and organizations have imposed severe sanctions against Russia. These sanctions are aimed to cut off Russian financial institutions from the western market.
Besides, these sanctions could disrupt world economies as Russian banks are deeply integrated into the world’s financial system.
Sanctions imposed by Countries
The UK has imposed sanctions on Russian Oligarchs which include Rosneft boss Sechin and Chelsea owner Abramovich. These sanctions will freeze the assets. Moreover, the UK is also targeting Russian airlines and oil imports. Thereupon, Britain has impounded one of the Russian airlines and banned exports of aviation goods to Russia.
In addition to that, the UK is not only targeting the Russian Oligarch but the Russian Sovereign wealth fund as well. It has imposed an asset freeze against Direct Investment Fund which is liable to bring investment in vital sectors
Similarly, the UK is planning to phase-out imports of Russian oil and products by the end of this year. Along these lines, Russian ships are also banned from Britain and Canadian Ports. However, the UK along with the EU and the US has banned transactions with the Russian Ministry of Finance, Central Bank, and national wealth fund.
EU has hit Russia and Belarus by cutting off major financial institutions from Moscow. In collaboration with the US, the EU is considering banning Russian ships from their ports. EU has also suspended state-affiliated media outlets of Russia which includes Sputnik and Russia Today.
Subsequently, the EU has also sanctioned Russian Oligarchs including journalists, businessmen, government members, and military personnel. Overall, the list includes twenty-six prominent personalities.
Meanwhile, measures are restricting travel bans and asset freezing. It is pertinent to note that the EU has forwarded the sanctions against the Russian Oligarch with the help of the US and Canada.
These restrictive measures are put against Putin’s spokesman, Dmitry Peskov, Russian Deputy Prime Minister, Dmitry Chernyshenko, boss of the state oil company, Igor Sechin, and chief of Transneft, Nikolay Tokarev.
Meanwhile, the list of sanctioned oligarchs includes Alisher Usmanov, Alexander Ponomarenko, Petr Aven, and Mikhail Fridman. These sanctions are also hitting Gas Industry Company SOGAZ.
Canada has also sanctioned influential individuals of Russia. According to Canadian Prime Minister, Justin Trudeau, the sanction list includes approximately ten individuals.
By the way, the Russian economy is also directed to stay out of SWIFT International Payment System. EU, US, UK, South Korea, and Japan have blocked Russian Banks’ access from SWIFT.
In a new round of sanctions, the US has revoked the status of Russia as ‘Most Favored Nation’. This step will allow the US to impose high tariffs on Russian goods. US President, Joe Biden, took this with the collaboration of NATO members, the G7, and the UK.
First, each of our nations will take steps to deny Russia “Most-Favored Nation” status.
It will make it harder for Russia to do business with the U.S. And doing it in unison with nations that together make up half of the global economy, will be another crushing blow to Russia.
— President Biden (@POTUS) March 11, 2022
More recently, the US has banned Russian energy imports and Oil. Similarly, Canada has also imposed a ban on Russian oil. In the context of technology, the US has stopped tech exports to Russia.
Resultantly, US firms are unable to get a license for selling sensors, navigation tools, computers, marine equipment, lasers, telecommunication, and aerospace technologies to Russia.
US sanctions are also targeting the major financial institutions including VTB Bank and Sberbank. Meanwhile, the financial institutions of Russia conduct forty-six billion dollars worth of foreign exchange transactions daily.
Approximately, eighty percent of these transactions occur in dollars. Thereupon, these sanctions will disrupt Russia’s exchange transactions and banking system. The list of measures also includes blocking sanctions against three other major financial institutions including Sovcom, Novikom, and Otkritie.
The combined assets of these institutions are worth eighty billion dollars. But, sanctions will reduce the capabilities of Russian financial services to access global markets, utilize dollars and attract investment.
As far as the sanctions against the Russian elite are considered, it includes Sergei Sergeevich Ivanov, Andrey Patrushev, Ivan Igorevich Sechin, Alexander Aleksandrovich Vedyakhin, Andrey Sergeyevich Puchkov, and Yuriy Alekseyevich Soloviev.
Switzerland has followed the EU policy of banning access to the SWIFT International Payment System and frozen assets of wealthy individuals of Russia.
It has also sanctioned exports that could contribute to Russia’s technological and military advancement. In addition to that, Switzerland has banned transactions with the Russian Central Bank to freeze its overseas assets.
Japan has imposed a new range of sanctions against Russia. It has restricted exports of refinery equipment exports to Russia. Japan has also suspended trade and visa issuance with LPR and DPR.
Accordingly, New Zealand has banned Russian ships from its ports. The country is also aiming to pass legislation to expand the scope of sanctions against Russia. Prime Minister of New Zealand, Jacinda Ardern, said that these sanctions will freeze Russian assets in the country.
It will also restrict people and companies to move their money in New Zealand to escape the global sanctions. These sanctions will also prevent Russian ships, aircraft, and superyachts to move into the waters and airspace of New Zealand. The country has also banned a hundred individuals from traveling to New Zealand.
The country has barred four Russian banks. It is also aiming to ban exports of computers, military items, and electronics to Russia.
Italy has also announced sanctions against Russia amid Ukraine Crisis. It includes seizing property and yachts of Russian elites.
Australia has imposed sanctions against wealthy Russian individuals. Currently, Australia has sanctioned ten individuals. Last week, Australia hit eleven financial institutions of Russia including the Central Bank of Russia.
Sanctions Imposed by Organizations
In the context of the consumer industry, Starbucks has suspended business deals whereas Yum Brands Inc, Procter & Gamble Co, and Danone have blocked investment in Russia. But, Danone will maintain the production of fresh dairy products. Moreover, McDonald’s, IKEA, Nestle, and Inditex have decided to close their outlets in Russia.
In the energy sector, Shell has stopped buying crude. The company has also refused to involve in all Russian hydrocarbons including natural gas and oil. Exit mobile will phase out Russian oil and gas operations that are worth four billion dollars. In the same vein, Siemens Energy AG has halted new investments in Russia.
Along these lines, Total Energies, Norwegian energy Group Equinor, and BP will abandon their stakes for new projects in Russia.
Boeing has divested its joint ventures with Russia and has also stopped buying titanium.
Mercedes-Benz would stop the export of passenger vans and cars. It has also divested its local manufacturing industry from Russia. Due to supply chain disruptions, Toyota Moto Corp has suspended production and imports.
Jaguar Land Rover and Aston Martin have stopped vehicle shipments along with Harley-Davidson Inc. Ford Motor Co has halted all existing and future operations, and has also informed its partner Sollers.
Eventually, BMW has stopped the export of cars to Russia. Thereafter, Daimler Truck, General Motors, Renault, and AB Volvo has halted all business activities in Russia. According to Renault, business activity is disrupted due to logistics bottlenecks and component shortages.
In this regard, International Paralympic Committee has banned Russian athletes from Beijing 2022 Paralympics. Formula One has stopped working with the Russian Grand Prix promoter. As a result, F1 wound not conduct racing matches in Russia.
Russian national football teams are no longer able to participate in international football tournaments including FIFA and UEFA matches. Likewise, the International chess federation has suspended Russian Federation from hosting any international event.
Airbus and Boeing have refused to send spare parts to Russia. Boeing has also stopped technical and maintenance support for Russian airlines. Subsequently, AerCap is considering ceasing leasing activity with the Russian Federation and its airline companies.
In the finance sector, Visa and Mastercard have ceased operational activities with Russian banks.
Nordea Asset Management has excluded investments done in Russian Federation. HSBC is also under international pressure to end operations with Russian banks including VTB.