EU leaders last night (Thursday) agreed on a “severe and unprecedented” package of sanctions to be imposed on Russia, in response to the invasion of Ukraine and the war that has been going on until European soil since yesterday. The package “aligns” with the sanctions previously announced by the United States and Britain. They do not include the move that Ukraine has vehemently called for, which is considered the heaviest “weapon” against Russia – removal from the global banking network “Swift” – but they are also expected to affect Russian banking sector.
At the top of the list of sanctions is the intention to cut off the ability of Russian banks to trade in European financial markets, and not even to lend or lend money to the EU in the future. Raising capital for companies affiliated with the Russian government in European markets will be prohibited. According to reports, similar sanctions will be imposed on the Russian energy sector, and not just banking, but not at this stage.
In addition, EU countries have pledged to stop exporting to Russia necessary and advanced technological equipment, such as transport equipment, marine equipment and equipment related to gas and oil production. Special licenses for exporting software to Russia will also be required. The union will also begin to require entry visas from Russian diplomatic passport holders, or Russian businessmen.
EU foreign policy chief Joseph Burrell said it was “the most severe package of sanctions imposed by the EU”. The Belgian prime minister added that “they will hurt the heart of the Russian economy.” As mentioned, the removal from “Swift” will not be carried out at this stage, but sources estimated that it may be carried out at a later stage, given the circumstances.
Yesterday, US President Joe Biden announced new sanctions on Russia following the war in Ukraine. Biden strongly condemned Russian aggression, describing to the American public how Russian President Vladimir “declared his war … just as soon as the UN Security Council She called for her to be avoided. ” “Putin is the aggressor, Putin is in charge, and now he and his country will bear the consequences,” Biden said.
The most severe sanction, which is not yet clear how it will be implemented, is Biden’s promise to “limit Russia’s ability to do business in dollars, euros or between Japanese” and a commitment to block sanctions on a number of large banks in Russia critical to the local economy. Biden said the Western Coalition represents half of the global economy.
While Biden made it clear that the move was “considered and perhaps even superior to” Russia’s disconnection from the SWIFT banking network, he made it clear that at this stage Russia would not be expelled from the network “in accordance with the wishes of our European allies”. According to reports, Germany, Italy and other EU countries are opposed to the move, which could put an end to Russian energy exports.
In addition, Biden has announced that additional sanctions will be imposed on Russia’s largest banks, and all US assets will be frozen. Add names of oligarchs and Kremlin associates, along with their families, to the list of personalities under personal sanctions.
The U.S. also announced the expulsion of number two at the Russian embassy, after Russia took a similar step last week.
Biden said the purpose of the sanctions is not to stop Putin in the immediate term, but to illustrate to him and his people the consequences of the sanctions. “It will weaken his country to such an extent that he will join in making a decision on the matter.” Biden said he spoke with Ukrainian President Ludimir Zalansky: “I promised him that the United States and our allies would support the Ukrainians in defending their country.”
Sanctions have also been announced in the UK
At the same time, British Prime Minister Boris Johnson this evening announced severe sanctions to be imposed by the United Kingdom on Russia and Russian institutions and oligarchs, in response to the country’s war this morning against Ukraine. In a speech to Parliament, Johnson announced a series of measures, including: freezing the assets of a number of large Russian banks in the UK, including VTB (the second largest bank in Russia), preventing any Russian bank from accessing the British financial system, and immediately limiting the amount Russian citizens can hold In British banks as well as a ban on landing and takeoff in the United Kingdom on the Russian national airline “Aeroflot”.
In addition, Johnson announced that Britain would add five more oligarchs to the shortlist announced yesterday of wealthy Russians, which would prevent them from entering Britain and their assets, if any, would be frozen. Trade sanctions will be imposed on about 100 Russian companies in the field of technology and weapons and the UK will advance legislation regarding a ban on the export of advanced technological components to the country.
British Prime Minister Boris Johnson, Tonight / Photo: Associated Press, Jeff Mitchell / Pool
Johnson referred to the sharpest step the West could take – disconnecting Russia from the SWIFT network – and said that for that step to be effective, “coordination at the level of the 7G countries” was needed, but that “no option is off the table.” He said these British sanctions were “the biggest and most severe” Britain has imposed.
He called on Russian President Vladimir Putin to be “an aggressor with blood on his hands who believes in an imperial occupation.”
In the coming hours, the EU and the US are also expected to declare “severe and comprehensive” sanctions on Russia.