Closure of airspace, freezing of assets of personalities and companies, questioning of financial and commercial links: since the start of hostilities in Ukraine, Western countries multiply the announcements of increasingly severe economic sanctions against Vladimir Putin, his relatives as well as the Russian economy. State of play.
The financial sector
He is undoubtedly the one favored by the West in the search for effective sanctions against Russia, in order to limit the financing capacities of the war. Latest example: the decision taken by the British government on Monday to freeze all the assets of Russian banks in the United Kingdom.
Another severe blow to the Russian financial system: the exclusion of the country’s main banks from the Swift interbank system, an essential cog in global finance that allows rapid and secure communication about transactions.
The United States and the European Union (EU) have gone even further by directly targeting the Russian central bank, with a ban from the same day on any transaction with this monetary institution, effectively immobilizing the assets it holds. in the United States and thereby limiting its ability to use its large foreign exchange reserves to buy rubles and support the rate of its currency. Canada and Japan have announced a similar ban.
The sanctions targeting the Russian financial sector are already having major consequences: the sharp drop in the price of the rouble, which forced the Russian central bank to raise its key rate sharply, as well as the possible bankruptcy of the European subsidiary of Srerbank, one of the most major Russian banks.
Transportation
The aviation sector was one of the first to be affected by the economic consequences of the Ukrainian conflict. The Russian company Aeroflot has been banned from airspace in the entire EU, the United Kingdom as well as Canada, which has forced it to announce a suspension of its flights to these destinations. In return, Russia banned airlines from the corresponding countries from flying over its territory.
But it is more broadly the entire Russian aeronautical industry that is targeted: the EU and Canada have thus banned the export to Russia of planes, parts and equipment from the aeronautical industry and spatial.
Maritime transport is not spared either: the United Kingdom has closed all of its ports to ships flying the Russian flag and to ships chartered or owned by Russians. On Saturday, France intercepted a Russian cargo ship belonging to the PSB bank, targeted by European sanctions.
Finally, the Swedish truck manufacturer Volvo Group announced on Monday the interruption of production at its Russian factory as well as sales to this country.
energy
The most symbolic decision came from Germany, with the announcement of the suspension of the Nord Stream 2 gas pipeline project, whose certification process was underway and was expected to increase deliveries of Russian gas to Germany .
Directly attacking the Russian energy sector is however more complicated for Westerners, first and foremost the Europeans. Russia is the world’s largest gas producer and the second largest oil producer, and several European countries, especially Germany and Italy, are heavily dependent on Russian imports.
Gazprom, the Russian gas giant, is however one of the companies that no longer has the possibility of raising funds on Western financial markets.
industry
On Friday, Japan announced sanctions on the export of semiconductors and other items to “Russian military-related organizations,” without giving further details. An important measure, insofar as Japan is, along with South Korea and Taiwan, one of the main producers of these electronic components essential to a wide range of industrial productions.
The United States had itself announced restrictions on Russia’s use of its technologies, in various fields including processors and electronic chips manufactured by Nvidia, Intel or Qualcomm, the main suppliers in the field.
Although behind in production, European countries are considering similar sanctions. The British ARM notably dominates the essential market for semiconductor architecture, an essential element in the production of these components.
Personalities
Several Russian personalities were already targeted by European and American sanctions after the annexation of Crimea in 2014, but these have been extended to a greater number of Russian decision-makers, first and foremost the President, Vladimir Putin himself, his Prime Minister, Mikhail Michoustin, and his Minister of Foreign Affairs, Sergei Lavrov.
The EU announced Thursday to target 23 “leading” personalities as well as 351 members of the Duma, the Russian Parliament, before adding the Russian president and Mr. Lavrov on Friday. The European Union swelled Monday to 26, with the president’s spokesman and several oligarchs, its blacklist of personalities sanctioned by a freeze of their assets and a travel ban because of their support for the war of Moscow against the ‘Ukraine.
A similar decision was taken by the United Kingdom concerning MM. Putin and Lavrov, as well as several Russian oligarchs, including Chelsea Football Club owner Roman Abrahamovitch.
For those targeted, these sanctions include a ban on traveling to European countries as well as the freezing of assets therein.
The United States, Canada, Switzerland and Australia have taken similar measures, but the list of those affected may vary from country to country, with the exception of the decision-making circle close to Vladimir Putin.