Due to the conflict in Ukraine, the US has imposed numerous sanctions on Russia to discourage diplomatic disagreement. The sanctions were extensive and mainly targeted specific influential individuals in addition to having affected the economic stability of Russia. Even though the sanctions were designed to deescalate the war situation, they had an inflammatory result. Many sanctions have cut off Russia from the Western economy and created massive financial disturbances, reducing its ability to influence global economies. This has greatly diminished Russia’s influence and financial power, limiting their commerce and reducing their war efforts. Those that support Russia are also discouraged from working around these sanctions. Even so, Russia continues to fight in its invasion of Ukraine and continues to impose its own rules on western countries. Some of the current sanctions include the following:
The first round of sanctions was created to target transactions happening in the Donetsk and Luhansk regions of Ukraine. These regions were recognized as separate from Ukraine by Russia and were sanctioned to control any foreign assets being exchanged throughout these areas.
Sanctions against Russian banks and sovereign debt cut it off from Western financing. It also was used to punish individuals who benefitted from corrupt policies. The sections prevent banks from raising money and acquiring new debt in the U.S. and European markets.
These sanctions were must broader and created restrictions on transactions dealing with large financial institutions and large export transfers. For example, mass-market hardware and software were limited. Restrictions were also placed on the export of oil refining equipment. High-tech imports were most significantly impacted by these restrictions.
There were sanctions issued against President Vladimir Putin, Foreign Minister Sergei Lavrov, Chief of General Staff of the Russian Armed Forces, the General of the Army Valery Gerasimov, The Minister of Defense Sergei Shoigu, and the First Deputy Minister of Defense.
Multiple Russian banks were removed from the SWIFT financial messaging system to prevent these banks from conducting basic commerce with countries worldwide. Seven banks were specifically removed and were chosen by the EU based on their connections to the state of Russia.
The Russian bank has been storing its assets in many countries around the world, many of which were frozen. All Russian state-owned assets were frozen in the US, and transactions with Russian accounts were prohibited.
Additional sanctions were created to prevent them from being avoided through Belarus. This also included crypto assets which were considered transferable securities. Any transactions with the Central Bank of Belarus were also barred. The selling of euro-denominated securities was prohibited to Belarusian clients.
The US began to ban the import of Russian oil, liquefied natural gas, and coal. This was done to reduce the collective dependence of the US on Russian energy and to put pressure on Putin. It limited their impact on global energy in an effort to protect Western economies.
Sanctions were placed on exporting, importing, re-export, and transferring any luxury goods to the Russian Federation and Belarus. This also targeted specifically oligarchs and other persons of influence around the world who have connections to the Russian state.
The sanctions imposed on Russia directly affect the economy and restrict their ability to receive goods. In addition to the US, currently, 30 countries have imposed sanctions on Russia. This also reduced Russia’s credit to a subpar level, resulting in a large shift from Russia’s private sector. The Russian stock market has been closed for the longest time in history, making the ruble weak compared to other global currencies. These actions put pressure on Russia to withdraw its war efforts.
Because of the war occurring overseas, the US continues to cut its ties with Russia and create additional barriers to prevent it from being able to participate in the global economy. The EU and other countries are coordinating their efforts together to further block Russian elites, families, and other persons of interest from profiting. In addition to sanctions on the financial system, any assets held in the US are prohibited. Additionally, Russian nationals are unable to travel to the US. This forces these families to let go of gains they have received by corrupt means.
