Ukraine crisis: What are the cards and costs of Western sanctions against Russia – BBC News

The EU’s 27 member states have agreed to take a series of countermeasures, including sanctions on 27 Russian individuals and entities, including several banks. Sanctions also restrict Russia’s access to EU capital markets, which are designed to cut off Moscow’s ability to access funds from EU banks.

The measure also includes a ban on trade between the EU and the two rebel-held areas. In addition, some 351 members of the Russian State Duma were also sanctioned, who were accused of voting in favor of recognizing breakaway areas.

EU foreign ministers have chosen not to sanction President Vladimir Putin, EU foreign ministers have chosen not to sanction President Vladimir Putin, EU foreign ministers said on Tuesday (February 22) after a meeting in Paris, Reuters reported.

Borrell pointed out that Russia’s formal recognition of the independence of two separate regions in eastern Ukraine constitutes an unacceptable violation of Ukraine’s sovereignty.

“This set of sanctions unanimously approved by the member states will hurt Russia very much,” Borrell told a news conference.

Washington also announced sanctions on Russia on Tuesday (February 22), the main goal of which is to weaken Russia’s ability to finance its military operations.

The sanctions target two state-owned banks, which the United States says are critical to Russia’s defense industry. They will no longer be able to do business in the U.S. or access the U.S. financial system.

The United States said it would also sanction five key Russian elites and increase restrictions on U.S. transactions involving Russian debt.

After Russia recognized the rebel-held Donetsk and Luhansk regions, Americans were barred from doing business there. Few U.S. companies are active in the region, but the White House said broader U.S. sanctions could be imposed “if Russia invades Ukraine further.”

British Prime Minister Boris Johnson announced sanctions on five Russian banks and three high-net-worth individuals. “This is part one … we stand ready to take further sanctions action,” Johnson said.

However, some lawmakers called for the government to be tougher, including measures against more banks and oligarchs.

German Chancellor Olaf Scholz has suspended certification of the Nord Stream 2 gas pipeline project from Russia to Germany.

In addition, Canada, Australia and Japan have also announced some sanctions.

Western countries have previously threatened severe sanctions if Russian forces invade Ukraine.

One of these measures is to exclude Russia from Swift, the international fast payment system. The service is used by thousands of financial institutions around the world. This will make it difficult for Russian banks to do business overseas.

However, this will cost countries like the US and Germany, whose banks have close ties to Russia.

The White House said the measure was unlikely to serve as an immediate response to the intrusion.

Banned the use of US dollars in Russia

The U.S. could ban Russia from financial transactions involving the U.S. dollar. Any Western company that allows Russian institutions to trade in U.S. dollars will face penalties.

This could have a huge impact on Russia’s economy, since most of its oil and gas sales are settled in dollars. This could weaken Russia’s foreign trade in other areas.

However, it would mean a sharp drop in Russia’s oil and gas exports, which would affect European countries that depend on Russian gas.

The U.S. could blacklist Russian banks, making international transactions nearly impossible. Moscow will have to bail out the banks and do what it can to avoid rising inflation and falling incomes.

However, it will hurt Western investors who do business with these banks.

In addition, Russia has more than $630bn (£464bn) in reserves at its central bank to protect against such economic shocks.

The West may restrict exports of core high-tech goods to Russia.

For example, the U.S. could ban companies from selling to Russia, such as semiconductor microchips, which are used in everything from cars to smartphones.

This will not only affect Russia’s defense and aerospace sectors, but also the entire economy.

And that comes at the cost of potentially hurting the business of companies exporting the technology.

Russia’s economy relies heavily on overseas sales of gas and oil, and Western countries may refuse to buy oil and gas from big Russian energy giants such as Gazprom or Rosneft.

But again, for Europe, this could push up gas prices and lead to fuel shortages. For example, Germany relies on Russia for a third of its natural gas supplies.

Restrictions on Russian funds entering London financial institutions

Russian money is so big in British banking and real estate that London is nicknamed “Londongrad”.

The UK government claims it is addressing the issue with the Unexplained Wealth Order, which mandates that people disclose the origin of their wealth and those who fail to do so could have their assets confiscated.

But only a few of these commands have ever been used.

The West has coordinated draconian sanctions plans in the event of a full-scale Russian invasion of Ukraine. But what if Moscow only took small steps?

U.S. and European diplomats say the West is less united on how to respond to these situations.

Some countries with closer ties to Russia — such as Hungary, Italy and Austria — may be reluctant to trigger major sanctions.

Some preparations beyond sanctions are also being deployed.

The U.S. is moving troops into NATO members Estonia, Latvia and Lithuania, which are close to Russia, an official said.

The military move from Italy involves some 800 infantry units, several F-35 fighter jets and 20 attack helicopters, some of which will be deployed in Poland.

Sanctions are penalties imposed by one country on another, usually to prevent it from acting aggressively or violating international law.

Sanctions are usually aimed at harming a country’s economy or the personal property of people such as political leaders. Measures could include travel bans and arms embargoes.

This is one of the most draconian measures a nation can use, other than war.