Editor’s Note
This article provides a clear, foundational explanation of what sanctions are and their role in international relations. It serves as a primer for understanding the context and significance of the latest measures.
Sanctions are punishments imposed by one country on another to deter aggressive actions or violations of international law. They are among the most severe measures countries can take short of war.
Two years after Russia’s invasion of Ukraine, the US, UK, and EU have announced new sanctions. US President Joe Biden announced 500 new sanctions targeting Russia’s “war machine,” with nearly 100 entities or individuals facing export restrictions. These measures also target individuals linked to the imprisonment of opposition leader Alexei Navalny, who died in an Arctic penal colony. The UK has frozen the assets of six heads of that colony and banned them from entering the country. The UK also imposed new bans on Russian metal, diamond, and energy exports. The EU announced sanctions on 200 organizations and individuals for helping Russia procure weapons or taking Ukrainian children from their homes, including those involved in shipping North Korean weapons to Russia.
Since Russia invaded Ukraine in February 2022, the US, UK, EU, and countries like Australia, Canada, and Japan have imposed over 16,500 sanctions. Their primary target is Russian finances. $350 billion in foreign exchange reserves have been frozen, about half of Russia’s total. The EU states that around 70% of Russian bank assets are also frozen, with some banks excluded from the SWIFT international payment system. Western countries have also:
– Banned exports of technology that could be used for weapons to Russia.
– Banned imports of Russian gold and diamonds.
– Banned flights from Russia.
– Sanctioned Russian oligarchs linked to the Kremlin and seized their yachts.
Russia’s oil industry is another major target. The US and UK banned imports of Russian oil and gas. The EU banned seaborne crude oil imports. The G7 imposed a $60 per barrel price cap on Russian crude oil to reduce its oil revenue.
Hundreds of major companies, including McDonald’s, Coca-Cola, Starbucks, and Heineken, have stopped selling and producing goods in Russia. However, some companies, like PepsiCo, are accused of continuing to sell food in Russia. The BBC found that Avon is producing goods at a factory near Moscow.
President Vladimir Putin claims European sanctions have not harmed Russia, stating, “We are growing, they are declining.” According to the Atlantic Council, Russia has managed to sell oil abroad above the G7 price cap using a “shadow fleet” of about 1,000 tankers. The International Energy Agency says Russia still exports 8.3 million barrels of oil per day, increasing supplies to India and China. Researchers at King’s College London say Russia can also import many sanctioned Western goods through countries like Georgia, Belarus, and Kazakhstan.
According to the IMF, Russia’s economy shrank by 2.1% in 2022, the first year of the war. However, it estimates growth of 2.2% in 2023 and 1.1% in 2024. The US Treasury states sanctions have cost Russia 5% in economic growth over the past two years.
The US Treasury also says the war and sanctions have led over one million people, many highly educated young people, to leave Russia. According to the UK Ministry of Defence, the Russian government has been cutting healthcare spending to fund the war in Ukraine.
