February 23, 2022—The international community rallied support for Ukraine and joined the United States in issuing new sanctions against Russia.
It comes after Russian President Vladimir Putin ordered his troops into rebel-held regions of eastern Ukraine after recognizing them as independent states.
Today, leaders from Poland and Lithuania stood by the side of Ukrainian President Volodymyr Zelenskyy in a news conference as he asked for an “immediate and harsh” response by the international community. And respond, they did.
The European Union, the United Kingdom, Japan, Australia and Canada announced new sanctions against Russia. This follows yesterday’s announcement by U.S. President Joe Biden about the “first tranche of sanctions.”
In some cases, like those in the United Kingdom and Europe, the sanctions will have a strong impact. In other cases, like those coming from Japan, the announcements are primarily a symbolic show of support.
Nord Stream 2 Pipeline
Zelenskyy welcomed Germany’s decision to stop the Nord Stream 2 pipeline, which would have bypassed Ukraine to transport gas from Russia to Europe. Zelenskyy called the pipeline a weapon against Ukraine and the whole of Europe.
New Sanctions By EU, UK, Japan, Australia And Canada
The European Council adopted a package of measures today that creates restrictive measures on financial transactions and travel bans against all 351 members of the Russian State Duma and 27 high-profile individuals and entities. They also launch import bans against goods from Donetsk and Luhansk, the breakaway regions, and an export ban for certain items.
European Council President Charles Michel is hosting an emergency meeting for Council members on Thursday in Brussels.
“The aggressive actions by the Russian Federation violate international law and
the territorial integrity and sovereignty of Ukraine. They also undermine the
European security order,” Michel said in a letter sent today.
Michel added that members will discuss additional ways to hold Russia accountable.
UK ‘Surgical’ Sanctions
Like EU sanctions, restrictive measures coming from the United Kingdom also carry significance. London is a key financial hub for multinational banks.
According to Foreign Secretary Liz Truss, the new measures are “surgically targeted” to prevent the Russian government and specific banks and companies from raising funds in the British economy.
“This first wave of sanctions will hit oligarchs and banks close to the Kremlin,” Truss said. “It sends a clear message that the UK will use our economic heft to inflict pain on Russia and degrade their strategic interests.”
Significantly, the United Kingdom did not restrict Russia’s sovereign debt, like the United States did on Tuesday. However, the U.K. government said it would take that step if Russia does not de-escalate its aggression in Ukraine.
Japan And Australia
Japan today announced it is taking the following steps: It will not issue visa to people from the two so-called republics. It is imposing import and export bans on the two so-called republics. And it is prohibiting the distribution of Russian bonds in Japan.
Furthermore, Japan is also diverting excess supplies of natural gas (LNG) to Europe. And the government is taking diplomatic steps to urge energy markets to stabilize.
In Australia, Morrison Government is taking immediate action to sanction Russian individuals, organizations. Furthermore, it is blocking transactions with the following banks: Rossiya Bank, Promsvyazbank, IS Bank, Genbank and the Black Sea Bank for Development and Reconstruction.
Russia’s Response to Sanctions
To date, Russia has relied on UK banks to finance deals with African governments. Furthermore, since the launch of the 2014 sanctions, Russia has taken steps to insulate itself.
Furthermore, Russia passed several decrees between 2017 and 2019 to curb the transparency of firms at risk of sanctions. According to Alexi Fehlman, a Eurasia analyst with Sayari, that allows Russian businesses and joint-stock companies to opt-out of reporting requirements. These can include information on ownership and subsidiary structures.
Copyright secured by Digiprove © 2022 Patti Mohr