The first sanctions against Russia began before the start of the war. As early as February 22 when Vladimir Putin recognized the separatist republics of Donbass. For example, they prevented Moscow from accessing the European capital market. Then, we will observe it very clearly, each package of sanctions will be more severe than the previous one. Europe is therefore choosing a graduated response. A whole host of sectors are targeted: finance, transport, energy, food and each time, the bag of sanctions is heavier.
For example, at the beginning, Europeans only target spare parts, then products “finished” such as steel products in the fourth package. The 27 exclude from the Swift system seven Russian banks, then three more, without touching the most important. This weapon, however, makes Russia a “pariah of the international financial system”. The Russian media are also affected. Those who allowed the Kremlin to spread its propaganda, such as Russia Today and Sputnik, are banned in Europe in the third package. The last package of sanctions, adopted on April 7, decides on the embargo on coal, wood, cement and Russian alcohol.
The sixth package, proposed by the European Commission, should target oil and oil products. A progressive embargo over six or eight months. Two countries could be exempted: Hungary and Slovakia which are totally dependent on Russian oil. They will have until 2023 to implement other alternatives. These exemptions create dissension within the European Union because other states, such as Bulgaria, would like to benefit from them. To be accepted, the package must be voted on unanimously. This sanction on oil could hurt Russia because the European Union represents two thirds of its black gold exports. Last year, that amounted to $80 billion. The sixth package could also target Sberbank, the most important bank in Russia which represents 37% of the market. She could be excluded from the Swift system. The European Commission also speaks of a tax on transport by tankers.
Stores closed, inflation… In Russia more than elsewhere, the price of things has gone up. 17% inflation in one year. Bottles of wine for example: before in Moscow, you could buy one for 1,000 rubles, around 13 euros. Today, the same bottle is at 1,800 rubles, 25 euros, an 80% increase. Muscovites and other Russians in big cities can no longer go to Western chain stores like Zara or Ikea, which have closed. Cat food increased by 25%, contact lenses by 20%. In the cinemas, it is not the prices that slow down but the lack of films: foreign films are no longer shown.
One sector is struggling: that of new cars. In March, sales fell by 63% and prices soared + 40% or even 60%. A consequence of stopping the export of spare parts and the withdrawal of several brands from the Russian market. And for those who already have a nice car, sometimes count 1,000 euros for the oil change of a German car. Putin can be proud of one thing: the much-heralded collapse of the ruble did not take place. Thanks to strict capital controls, the Russian currency is holding up well. But for how long ?