Russian President Vladimir Putin has recognized the independence of two regions controlled by pro-Russian rebels in Ukraine. He also ordered the deployment of Russian troops there. In such a situation, the United States, the United Kingdom and its allies have imposed a number of sanctions on the country. Analysts believe that more sanctions will come in this series. News from the BBC.
Moscow has long stepped up its military presence on the Ukrainian border. Western nations have been claiming that Russia is preparing to attack the country. In that case, the warning of strict sanctions came from the countries.
What exactly is a ban?
Prohibition can be called a kind of punishment. If a country engages in aggression or engages in activities such as violating international law, another country may impose sanctions on that country.
Sanctions are often imposed on a country’s economy or on the financial situation of its citizens, such as top politicians. This may include travel bans on certain countries, as well as arms embargoes.
Russia faces sanctions
Putin has imposed sanctions on Russia after recognizing the independence of the rebel-held Donetsk and Luhansk regions of Ukraine. The European Union (EU) is set to impose sanctions on 26 Russian individuals and entities.
The EU is also taking steps to limit Russia’s activities in European capital markets. The process of freezing the country’s funds in EU banks is underway. In addition, trade with the EU in Donetsk and Luhansk is being hampered. The 351 members of the lower house of the Russian parliament have also been targeted by EU sanctions.
The United States imposed sanctions on Russia on Tuesday. Sanctions have been imposed on the country’s VEB bank and the military bank Promsvayaz. Promsvayaj Bank operates under various military agreements. Under the ban, the two banks will not be able to conduct business in the United States. In addition, they will face obstacles in entering the US economic system.
The United States has also imposed sanctions on Russian millionaires and their families. They cannot do business with U.S. citizens. At the same time, the assets of those in the United States will be confiscated.
After Russia recognized the independence of Donetsk and Luhansk, there was also a ban on American trade. Several US businesses are active in the region. The White House has warned that sanctions against Russia could lead to more sanctions.
Meanwhile, British Prime Minister Boris Johnson has announced sanctions against five Russian banks and three billionaire businessmen. However, many members of the country’s parliament are not satisfied with this. They told the government that the range of sanctions should have been bigger. Although Boris Johnson says, ‘This is the first step. We have more sanctions in place. ”
Announcing the ban, Japanese Prime Minister Fumio Kishida said the country would suspend issuing visas to officials in Donetsk and Luhansk as an immediate step. Apart from imposing restrictions on certain Russian people traveling to Japan, Tokyo will also seize their assets.
Referring to the imposition of a ban on the sale of Russian government bonds in Japan, Fumio Kishida said the details of the ban would be finalized in the next few days.
German Chancellor Olaf Schultz has announced the suspension of the Nordstream 2 gas pipeline project amid the Russia-Ukraine crisis. The two countries were discussing a project to import natural gas from Russia to Germany.
Canada has also imposed sanctions on Russia. Citizens of Donetsk and Luhansk will not be able to make any financial transactions with the region. Members of the Russian parliament who voted to recognize the two regions’ independence will be subject to sanctions. Russia’s two state-run banks will also be blacklisted in Canada.
More sanctions may come
Experts say sanctions imposed on Russia by the West have only been partially imposed since Putin’s new move. If Russia launches an attack at all, tougher sanctions will follow. They may include:
1. Swift shutdown for Russia
Swift is a global network used for transactions between financial institutions around the world. The West could take steps to keep Russia out of the Swift service.
Such a ban would make it very difficult for Russian banks to conduct business outside the country. But it will have the opposite effect on countries like the United States and Germany. Because the banks of these countries have close ties with Russia.
2. Russia’s use of the US dollar is hampered
The United States may impose sanctions on Russia over its use of US dollars in financial transactions. After the ban, if any western institution trades in dollars with Russia, it will be punished.
Russia’s economy will suffer greatly if the dollar is banned from trading. Because, fuel oil and gas are exported from the country in exchange for dollars. Russia’s other sectors associated with foreign trade will also suffer. However, such sanctions could lead to a crisis in European countries, which import oil and gas from Russia.
3. Export of technology products to Russia stopped
Western countries may block exports of key technology products to Russia. These products may include semiconductor microchips. This microchip is needed to make everything from cars to smartphones.
The economy will suffer just as much as Russia’s defense and aerospace sectors will suffer if technology is not available. At the same time, the countries exporting these products to Russia will also be affected.
4. Russia stops importing fuel
Russia’s economy is heavily dependent on natural gas and fuel oil exports. In such a scenario, the West may stop buying oil and gas from the country’s big companies like Gazprom and Rosneft.
Stopping energy imports from Russia could push up gas prices in European countries, leading to an oil crisis. Among these countries is Germany. Gas imported from Russia meets one-third of the country’s demand.
5. Blacklisting Russian banks
The United States could blacklist Russian banks. This will make it almost impossible for financial institutions to conduct international transactions. Of course, the western investors who have money in these banks will also suffer.
US and European diplomats say Western nations are not in agreement on how to respond. Several countries have close ties with Russia. The list includes Hungary, Italy and Austria. Countries will not follow the path of major sanctions against Russia.