Summary of sanctions imposed on Russia by the US and Western countries

Yesterday's recognition of the independence of the two separatist republics of Donetsk and Lugansk was met with disapproval by the international community and leaders of Western countries. In an imperialist tone, the Russian president also emphasized his attitude towards the whole of Ukraine, not only to its eastern periphery. However, some of the leaders decided to support Putin, including:

• Alexander Lukashenka, President of Belarus,
• Bashar Al-Assad, President of Syria,
• Ramzan Kadyrov, president of Chechnya,

What do we know at the moment about the sanctions that will face the Kremlin?

• Germany blocked the construction of Nord Stream 2, the gas pipeline would make Europe even more dependent on supplies from Russia; the decision met with great approval of the USA;
• The United Kingdom blocked the accounts and prevented the transfer of capital to the United Kingdom by three Russian oligarchs Igor Rotenberg, Boris Rotenberg and one of Russia's richest Gennady Timchenkow. The sanctions also applied to five large Russian banks, Rossiya, IS Bank, General Bank, Promsvyaz Bank and BlackSea Bank;
• The Council and the European Commission will also impose sanctions on Russian financial institutions. It is also possible to freeze relations with two separatist republics and sanctions against those who contributed to their creation;
• EU ministers support a package of sanctions against Russia in response to the Ukraine move. EU foreign affairs chief Josep Borrell said Tuesday this first package of sanctions “will hurt Russia and it will hurt a lot.”
• He said the package would affect members of Russia’s duma who voted against the territorial integrity and sovereignty of Ukraine as well as another 27 people and “entities” which are often companies, banks or agencies.
• Borrell added that the package will also affect financing of policies linked to Ukraine by limiting access to EU financial markets.
• Referring to Russian actions in Ukraine, Borrell said “this story is not finished.”
• Israel is cautious about possible sanctions due to the tense situation in Syria and the large Jewish community in Russia;

EUs Von Der Leyen said:

• crisis shows the EU to dependent on Russian gas, must diversify suppliers and massively invest in renewables
• if Russian continues escalation we are ready to take further action
• will make it as difficult as possible for crime one to pursue aggressive policies
• On Nordstream 2, German government is absolutely right

The Kremlin is threatening with strong increases in gas prices for Europe of up to EUR 2,000 per 1,000 m3 in response to the blockade of the Nord Stream 2 gas pipeline; 

According to Bloomberg, Europe is currently much better protected in the event of problems with energy supplies than in 2021. This is due to wider access to LNG tankers and mild weather forecasts;

The current sanctions have made no impression on Putin. For many years Russia has been preparing for such a scenario, including the complete exclusion of Russia from the interbank SWIFT system. To this end, Moscow has created an alternative national system 'MIR', which also supports transactions with payment cards. Putin feels strong as he decided to send troops to the rebel republics. A convoy of more than 100 trucks with soldiers has been seen on its way towards the Ukrainian border and Russia's Belgorad region.

US sanctions:

President Joe Biden signed an executive order Sunday which prohibits new investments, imports and exports from the separatist territories by U.S. persons or businesses. The measures are largely symbolic given their limited reach and how few people and entities it would affect

Today President Biden said, the US will begin to impose sanctions that are far more severe than previous ones.

Further comments from US president:

• We are collaborating with Germany to put a stop to Nord Stream 2.
• Russia will pay an even higher price if it continues its aggressive behavior.
• The United States has imposed full blocking sanctions on two Russian banks.
• Imposing sanctions on Russian elites and family members
• Will implement sanctions on on Russian sovereign debt
• I have authorized the deployment of additional forces and equipment to strengthen Baltics.
• We will defend every square inch of NATO territory
• Defending freedom will incur costs at home as well.
• Hopes that diplomacy is still an option

​​​​​​​These sanctions aren't a big deal and risky assets rebounded slighlty.