The sanctions against Russia were put in place by the Western powers to hurt the country's economy.
According to the Council on Foreign Relations, Sanctions are the withdrawal of trade or other financial relationships for foreign policy or security reasons. They are a tactic used to prevent a war from breaking out.
They are part of the retaliation against Russian President Putin. The Russian economy is at risk of falling into recession after a month after the invasion began.
The US, UK, and European Union are removing all types of sanctions. They were broken down for Insider by an attorney who specializes in commercial litigation and finance law.
The Western effort to block certain Russian banks from using the global communications service, known as SWIFT, is an example of a government sanctioning another government. The sale of Russian oil to the US would have cleared through the international money transfer service.
It is the first time in history that a group of governments have kicked a member nation out of the international trade organization.
The Russian Central Bank had $630 billion in assets frozen by the US, which prevented the country from using that money to finance its attack on Ukraine or prop up the economy. The economic punishment against Russia is increased by such sanctions.
This tier of sanctions involves severing ties with certain types of businesses and industries. We will not sell to them. We won't do business with anyone who buys or sells from them.
President Joe Biden announced earlier this month that the US would ban all Russian energy imports, which would affect imports of Russian oil, natural gas, and coal. The US banned imports of Russian seafood, vodka, and diamonds a few days later.
The US and some of its European allies have banned high-end exports to Russia, including watches, cars, and alcohol. The White House estimated those exports to be $510 million a year.
These kinds of sanctions can be very tough.
Western alliances are hitting Russian elites with personal sanctions. This is the most severe form of sanction, Gielchinsky said.
The inner circle of very wealthy people are what Gielchinsky calls the oligarchs targeted here.
They support his campaigns. He said that they support his policies and that he needs to stay wherever he is to keep the country moving. When you call out these individuals, it is a very strong statement, as close as you can get to calling out the president himself.
The US, UK, EU, and Canada have all frozen the assets of the so-called "oligarchs" and banned them from doing business there. Legislation that would allow the federal government to seize assets worth more than $5 million has been proposed by some US lawmakers. The measure would be in line with sanctions already implemented by other countries, such as France, which recently seized a $120 million superyacht owned by the Russian billionaire.
Gielchinsky said that governments are coming for you with sanctions like this.
All Rights Reserved © 2024
