Friday, February 25, 2022
ISLAMABAD (UPDATED: February 25, 2022) - As Russia launched a massive offensive on Ukraine on Thursday, February 23, it was expected that the Moscow government would soon have the support of the United States, the European Union and Western allies. It will face severe economic and trade sanctions.
What is Ukraine doing to compete with Russia?
Now the United States, Britain and the European Union have imposed new sanctions on Moscow.
The first round of sanctions was imposed on Wednesday, February 22, after President Putin ordered his troops to enter eastern Ukraine.
The nature of the restrictions
Various analysts initially rejected the sanctions, saying they lacked severity and could not have a broader impact on Russia.
At the same time, it was estimated that severe sanctions would be imposed in the event of a major attack.
Sanctions imposed since Thursday's major Russian offensive have been described as "severe and devastating".
In a live broadcast, US President Joe Biden announced tough sanctions, saying that Russia would have to pay a heavy price for its attack on Ukraine and that its economy would be severely affected.
How are Pakistanis stranded in Ukraine?
Financial institutions were restricted
Russia's two largest banks were targeted in the first phase of sanctions.
One of them is Sabir Bank and the other is VTB Bank. Both are state-owned. Sabir Bank owns one-third of Russia's assets.
Under the new restrictions, the two banks will be unable to conduct their financial transactions in dollar currency. The other VTB Bank owns 16% of Russia's assets. All of his assets in the United States have been frozen.
Russia's three largest financial institutions are also included in the category of banking sanctions. These include Otkreti, Novicom and Sovcom. In addition, the activities of 90 small financial institutions have been completely curtailed. All of these institutions work together with the global banking system to advance economic affairs.
These same Russian companies are involved in 80% of international financial transactions on a daily basis, with the aim of preventing this from happening under US sanctions.
German politicians have limited options, says German army chief
Trade controls and other restrictions
The US president has also banned the supply of critical technology to Russia. On the other hand, the European Union has decided to ban the sale of aircraft to Russia. The sanctions are also intended to block access to sensors, lasers and other telecommunications products used by the Russian military.
Britain has placed three of Russia's richest men under sanctions. Some sanctions have been imposed on Belarus, Russia's main ally. Like Britain, the US Treasury Department has decided to target the Russian elite.
Russia's invasion of Ukraine, the reaction of world leaders
There are also rumors that Russia will be separated from the International Monetary Fund (SWIFT). It has not yet been confirmed, while Germany opposes it. If that happened then we would all be in for a treat. It has been reported that not only Germany but also some other US allies are hesitant about the ban.
Arthur Sullivan (AS / AA)
