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Saint Basil’s Cathedral in MoscowIMAGE SOURCE,GETTY IMAGES
The EU is proposing further sanctions against Russia, after President Putin signed treaties on annexing four more areas of Ukraine.
The sanctions are aimed at limiting its ability to pay for war against Ukraine.
What are sanctions?
Sanctions are penalties imposed by one country on another, to stop them acting aggressively or breaking international law.
They are among the toughest actions nations can take, short of going to war.
What are the latest EU measures?
The EU, along with other Western countries like the US and UK, have targeted wealthy individuals, banks, businesses and state-owned enterprises.
Its latest round of sanctions, drawn up by the European Commission, proposes a further ban on Russian imports, including oil. It would also ban more hi-tech goods from being exported.
European Commission President Ursula von der Leyen said it would cost Russia €7bn (£6.1bn) and stop the sale of items that could help its military.
What sanctions have been imposed on Russia?
Financial measures
Western nations are trying to limit Russia’s access to money.
The US has barred Russia from making debt payments using foreign currency held in US banks.
Major Russian banks have been removed from the international financial messaging system Swift. This has delayed payments to Russia for its oil and gas exports.
The UK has excluded key Russian banks from the UK financial system, frozen the assets of all Russian banks, barred Russian firms from borrowing money and placed limits on deposits Russians can make at UK banks.
Russia’s economy buckles up for a bumpy ride
Oil and gas
Western nations have announced these sanctions:
The European Union (EU) will ban imports of Russian oil brought in by sea from December
The EU will ban all imports of refined oil products from Russia in February 2023
The US is banning all Russian oil and gas imports
The UK will phase out Russian oil by the end of 2022. It no longer imports Russian gas
Germany has frozen plans for the opening of the Nordstream 2 gas pipeline from Russia
The EU has stopped importing Russian coal
From December, the EU and G7 also want to cap the price countries pay for Russian oil.
They are telling importers of Russian crude oil that western insurers will not cover oil shipments if they pay more than the cap.
The EU has not imposed sanctions on Russian gas, because it relies on it for about 40% of its gas needs.
Can the world cope without Russian oil and gas?
Targeting individuals
The US, EU, UK and other countries have sanctioned more than 1,000 Russian individuals and businesses – including so-called oligarchs.
These are wealthy business leaders who are thought to be close to the Kremlin, such as former Chelsea FC owner Roman Abramovich.
Roman Abramovich
IMAGE SOURCE,REUTERS
Image caption,
Roman Abramovich is the former owner of Chelsea FC
Superyachts linked to sanctioned Russians have been seized.
Russian government officials and family members have been sanctioned. Assets belonging to President Putin and Foreign Minister Sergei Lavrov have been frozen in the US, EU, UK and Canada.
The UK has stopped the sale of “golden visas”, which allowed wealthy Russians to get British residency rights.
What other sanctions have been imposed on goods and services?
Measures include:
A ban on the export of dual-use goods – items with both a civilian and military purpose, such as vehicle parts – by the UK, EU and US
A ban on all Russian flights from US, UK, EU and Canadian airspace
An import ban on Russian gold
A ban on the export of luxury goods to Russia
The UK has imposed a 35% tax on some imports, including vodka
Many international companies have either suspended trading in Russia, or withdrawn altogether.
Are sanctions hurting Russia?
Russia’s ability to fund the war has been helped by high oil and gas prices.
David Fyfe, chief economist at research organisation Argus Media, says its crude oil revenues rose 41% over the past year.
“Oil sales make up 40% of Russia’s total exports, and so they are helping greatly to fund the war,” he says.
However, Mr Fyfe says sanctions are weakening Russia in other ways, “especially by blocking its access to the hi-tech components that its military sector needs”.
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