New Financial Sanctions Imposed on Russia by Western Nations
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In an effort to cripple Russia’s economy and undermine its military capabilities, the United States, United Kingdom, and European Union have imposed new financial sanctions on the Russian Federation. This move comes just one week after the death in custody of opposition leader Alexei Navalny and two years since Russia’s invasion of Ukraine.
Escalation of Sanctions
The latest sanctions target nearly 100 firms or individuals involved in shipping North Korean armaments to Russia, marking a significant escalation in the West’s efforts to isolate Moscow. According to US President Joe Biden, the new measures aim to “stop Russia’s war machine” by imposing export restrictions on companies and individuals linked to the Russian military.
Total Number of Sanctions Imposed
The latest sanctions bring the total number of penalties imposed on Russia since its invasion of Ukraine to over 16,500. Western nations have targeted a range of sectors, including:
- Technology exports
- Gold and diamond imports
- Flights from Russia
- The oil industry
G7’s Maximum Price Cap on Russian Crude Oil
The G7 has also imposed a maximum price cap of $60 per barrel on Russian crude oil.
Signs of Resilience in Russia’s Economy
Despite these efforts, Russia’s economy has shown signs of resilience. According to the International Monetary Fund (IMF), the country’s GDP shrank by 2.1% in 2022, but grew by 2.2% in 2023 and is predicted to grow by 1.1% in 2024.
Experts’ Concerns
However, experts warn that sanctions have not yet made waging war sufficiently costly for Russia, allowing it to continue its military campaign. The US Treasury has also reported that over a million people - many of them young and highly educated - have left Russia as a result of the war and economic sanctions.
In summary, while Western nations’ efforts to isolate Moscow through financial sanctions have had some impact on Russia’s economy, experts believe that more needs to be done to make waging war costly for Russia in order to bring an end to its military campaign.