Russia-Ukraine War: Who has sanctioned what on Putin?
As Russian President Vladimir Putin rolled his military tanks into two regions in Eastern Ukraine as part of a ‘peacekeeping’ force, Western nations finally buckled up to impose sanctions on the communist country.
Western nations including the US, UK, EU and some other allies are intending to cause some economic pain to Kremlin and make it think hard before choosing their next move in the Ukraine crisis. Already, Russia’s move to recognise two regions of Ukraine suffering from separatist activity as ‘independent’ and moving its troops into the regions has been dubbed as the beginning of an invasion.
Here are the countries that have sanctioned Russia:
1. USA
US President Joe Biden announced the first tranche of sanctions against Russia on February 22, 2022, Tuesday, a day after the Kremlin’s actions in Eastern Ukraine. So far, the Biden administration has sanctioned two state-owned Russian banks known to be close to the Kremlin and the defence sector of the country. This would mean that the banks would be unable to raise money from Western financial institutions.
The Biden administration has also sanctioned five Kremlin-connected oligarchs (business oligarchs of the former Soviet Union who accumulated massive wealth after its fall), who are Aleksandr Bortnikov, his son Denis Bortnikov, Sergei Kiriyenko, his son Vladimir Kiriyenko and Petr Fradkov.
Assets belonging to the entities sanctioned above in the US have been immediately frozen.
Earlier, Biden had signed an executive order prohibiting any US business activity or financial transactions between the US and the two Ukrainian regions recognised by Kremlin as independent.
2. UK
UK Prime Minister Boris Johnson also announced the first tranche of sanctions against Russia that include five state-owned banks and three oligarchs.
The banks sanctioned include - Bank Rossiya, Black Sea Bank for Development and Reconstruction, Joint Stock Company Genbank, IS Bank, and Public Joint Stock Company Promsvyazbank. And the oligarchs sanctioned include - Gennadiy Nikolayevich Timchenko, Boris Romanovich Rotenberg, and Igor Arkadyevich Rotenberg, also known to be in Russian President Vladimir Putin’s close circle.
The sanctions cut off access to the UK financial system for the above mentioned Russian banks and individuals. Moreover, the three oligarchs are banned from entering the UK. All assets belonging to the banks and the individuals in the UK have been frozen and all UK citizens are barred from making any business deals with the sanctioned entities.
3. THE EU
The EU members agreed to a sanction draft that includes 27 Russian individuals and organisations, including banks. Some of the Russian members being targeted by the EU sanctions include those from Russia’s lower parliament house. All trade between the EU and the two eastern Ukraine regions has also been banned.
Under the sanctions, targeted entities will not have access to the EU financial system.
4. GERMANY
Separately, Germany’s Chancellor Olaf Scholz on Tuesday, February 22, 2022, announced that it is suspending the billion-dollar Nord 2 gas pipeline project with Russia.
5. AUSTRALIA
Australia also announced sanctions on Russia targeting eight of President Vladimir Putin’s security advisors. The members will face restrictions on travel to Australia. Moreover, Australia is also planning to sanction Russian military-linked banks. Furthermore, Australian Prime Minister Scott Morrison said they will be accelerating visa applications for 430 Ukrainians moving to Australia.
6. CANADA
Canada also imposed sanctions on Russia barring all financial dealings with members of the Russian parliament who voted in favour of declaring the two Ukraine regions as independent and also approved military deployment there.
Furthermore, Canada has barred all transactions from the two Ukrainian regions held by rebels. More sanctions are expected to be announced on Russia’s elite and their family members and also two Russian banks.
7. JAPAN
Japan's sanctions bar the issuance of Russian bonds in the country and freezing of the assets belonging to some Russian individuals. Moreover, Japan has also restricted travel from Russia.
Other than the economic sanctions, countries like the US and Canada are also moving their military troops and equipment closer to the Russian border through Baltic countries. The US is moving its troops into Estonia, Latvia and Lithuania. Some of the military deployment in Italy including infantry troops, F-35 fighter jets and 20 attack helicopters are being moved to Poland.
Before these new sanctions, Russia already had several old sanctions dangling on its head. The US alone has over 800 sanctions imposed till 2021 on Kremlin according to Global Sanctions Dashboard by the Atlantic Council.
However, according to a report by Reuters, the current sanctions on Russia only manage to scratch the economy of the country and don’t really do much damage. Reuters reported that the Western nations are saving the worst, or as one US lawmaker called it, ‘the mother of all sanctions’, for the next serious escalation.
One of the serious sanctions includes banning Russia from the SWIFT system.
WHAT IS THE SWIFT SYSTEM?
SWIFT is an acronym for Society for Worldwide Interbank Financial Telecommunication. The Washington Post describes it as the Gmail of global banking. SWIFT is used by thousands of banks worldwide. If Russian banks are banned from the system, it would make holding overseas deals very difficult for them. However, some European and American banks also have close links with Russian banks, who would be affected if the ban is implemented.
Other than that, the Western nations are worried that if it bans Russia from the SWIFT system, it would teeter towards the alternative one - The People’s Bank of China. This alternative is in a joint venture with SWIFT and is considered as an insurance policy against being banned from SWIFT.
Ukraine's President has been urging Western nations to act sooner and impose sanctions on Russia before they start escalation rather than after. However, Western nations, especially Europe, have their own interests to protect when it comes to sanctioning Russia. For example, Europe is reliant on the gas and energy sector of Russia, so any sanctions hitting Kremlin there would mean shockwaves through the gas prices across Europe.
Other updates:
1. Following the sanctions, Russian President Vladimir Putin told the upper house of the Parliament that Moscow is ready for diplomatic talks on the issue. On the other hand, the sound of the bombing was reported near the Ukraine frontline. Russia is also planning on evacuating its diplomats from Ukraine.
2. US Secretary of State Antony Blinken cancelled his Geneva meet with his Russian counterpart saying that Kremlin doesn’t seem serious about going the diplomatic route.
3. Ukraine President called up some of the military reservists but said that currently there is no need for full military mobilisation.
4. The Air India flight carrying 242 passengers arrived in New Delhi on February 22, 2022. The Indian government has reiterated that they will keep the flights to and from Ukraine functioning and will evacuate Indian nations if required.
5. Ukraine’s Airspace has been largely empty as seen on this Flightradar24 tracking site. However, Flightradar24 reported that over the past month, a spy US aircraft, a drone was seen for hours above the Ukrainian airspace flying in circles.