The Russo-Ukrainian conflict undermines all past efforts of international cooperation, interdependence, and peace-seeking accords, proven to be everything but binding in the eyes of Russia. The international community has already stated that sanctions will be imposed on Russia. What are these sanctions? What can Russia do to minimize it? This article aims at providing a comprehensive Idea about the current and potential sanctions on Russia as well as the consequent Russian countermeasures to shield its economy. It is worth underlining the obvious yet vital fact that given the advancements on communication, capital mobility and in general, technology; the world economies are more connected than ever before, this has provided leverage for the west in the negotiations table as well as a higher potential impact on Russia’s internal economy.
Since the very beginning of the invasion many countries
Limited interactions with Russian banks and companies, prohibiting payments, disrupting operations, and freezing assets. This (and many factors mentioned later in this article) has led thus far to a huge decrease in demand for the Russian Ruble, as evidenced by its depreciated value which did not amount to one American cent on March 9(0.00658165 USD/RUB). Surely more impactful is the United States’ and Great Britain’s decision to freeze the Russian Central bank’s assets in the west, which according to the BBC are denying access to over 574 million euros worth of India Phone Number List dollar reserves, further blocking their ability to make transactions in US dollars and import goods. Another key decision is removing seven major Russian banks from SWIFT, the globally used banking transaction system headquartered in Belgium. This will delay payments towards Russia, disrupt transactions and ultimately account for at least 5% contraction of the economy.
Passing on to energy-related sanctions
Europe imports 40% of its gas and almost 25% of its oil from Russia. Sanctions of this matter have therefore been subject to debate in the EU. Nonetheless. Germany has already halted the Italy WhatsApp Number List certification of the Nord stream 2 pipeline. Meaning it cannot operate, which according to CNN, contribute to 55 billion cubic meters of gas annually worth 15 million EUR of missed exports for Gazprom, Russia’s state-owned company. Moreover, EU officials have already stated that feasibility is being assessed for a plan that could cut importing needs from Russia by almost 80% by next year according to Bloomberg. Instead, on March 8th President Biden announced the full ban on Russian oil, gas, and coal while the UK has also banned imports of Russian Oil.
