Britain’s sanctions are intended to hit Russian banks, among others.
(Photo: dpa)
New York, London, Dusseldorf The western world does not want to let Russia’s war of aggression against Ukraine go unpunished: On Thursday, Great Britain, Switzerland, the USA and Canada decided on numerous punitive economic measures against Russia.
Previously, Russia had attacked the neighboring country under the pretext of wanting to “denazify” Ukraine. Meanwhile, Russian troops are harassing the Ukrainian military from the north, east and south. Parts of the country are already under Russian control, as Ukraine itself has confirmed for parts of the south.
Scores of people are fleeing west from the fighting across the country. Others defend the country against Russian army attack.
Even before the invasion, Western states had warned the Kremlin of serious consequences. The countries are now implementing these threats – with varying severity and with a variety of goals.
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The American and Canadian Penalties
US President Joe Biden announced several sanctions against Russia in the evening. Four major banks would be cut off from the international financial markets, which together have more than a trillion dollars in assets. Among them is the second largest, the VTB Bank. “The sanctions would be just as devastating as tanks and ammunition in Ukraine,” said Biden with conviction.
However, the US President refrained from excluding Russian financial institutions from the Swift payment system. The sanctions imposed are “worse” than a Swift ban. Biden also refrained from imposing sanctions on Russia’s energy industry on Thursday.
The US President also sees sanctions against Putin personally as “a possibility.”
(Photo: AP)
Biden advocated patience: “It takes time for the sanctions to take effect,” he said. The US did not assume that the sanctions would stop Putin. “But they will significantly weaken his country, so he will have to make very difficult decisions,” said Biden. Sanctions against Putin personally “are a possibility.” However, he left open why Putin will not be sanctioned on Thursday.
Neighboring Canada is suspending all export permits to Russia, Canadian Prime Minister Justin Trudeau announced on Thursday. No new permits would be issued, existing ones have been revoked, Trudeau said. In addition, existing sanctions would be tightened and extended to include the defense, finance and justice ministers of Russia.
Trudeau described Russia’s actions as the greatest threat to stability in Europe since World War II. “Russia’s attack on Ukraine is also an attack on democracy, international law, human rights and freedom,” Trudeau said. Canada will also process high priority immigration applications from people from Ukraine, he said.
British sanctions
Prime Minister Boris Johnson announced the “toughest economic sanctions in history” against Russia on Thursday. Putin “miscalculated,” said Johnson in the British House of Commons. Britain and its partners will freeze all assets of the major Russian bank VTB. Access for all Russian banks to the British financial system will also be stopped.
The money houses should no longer trade in pounds and do no business in London. Also, Russian companies and the state can no longer raise capital in London – be it through stocks or bonds.
More on the Ukraine war
The assets of another hundred companies and individuals will be frozen, it said. However, the government only named five other oligarchs after it had already sanctioned three billionaires close to Putin a few days ago. Critics had demanded that at least the list by the Russian regime critic Alexej Navalny should be used as a basis. This had called for sanctions against 35 oligarchs.
In addition, all Russian airlines, above all Aeroflot, will be banned from British airspace. There should also be strict export controls on electronics, telecom and space technology goods.
In the coming months, Johnson again pledged to reform corporate legislation to fight money laundering and white-collar crime more effectively in the UK. “We will gradually squeeze Russia out of the global economy,” Johnson said. The British prime minister also supported Russia’s exclusion from the Swift payment system. However, this requires unity in the G7 circle.
Switzerland’s special path
According to a government decision, Switzerland will not freeze the accounts of Russian officials who have been sanctioned in the EU. However, it will tighten up measures so that Switzerland cannot be used as a bypass platform for the sanctions imposed by the EU, it said on Thursday.
Federal President and Foreign Minister Ignazio Cassis referred to Switzerland’s neutrality in the statement. At the same time, he condemned the Russian invasion of Ukraine “strongly”.
Officials then explained that Russian citizens with accounts in Switzerland whose funds are frozen in the EU are free to dispose of and withdraw their money in Switzerland. Checks are being made to see whether guidelines are being tightened so that those affected cannot transfer new funds to their Swiss accounts.
According to the Foreign Ministry, neutrality means, among other things, that Switzerland does not take part in wars and treats all warring parties equally with regard to the export of armaments.
With agency material
More: New calls to exclude Russia from the Swift payment system