The West wants to introduce the foreign assets of the Russian central bank. Another escalation of economic sanctions over the Ukraine war.
(Photo: Reuters)
It took a few days – but then surprisingly quickly the West decided to impose financial sanctions on Russia that really hurt Vladimir Putin. The exclusion of selected Russian banks from the Swift global payment system is a clear escalation, and the blockade of the central bank’s foreign assets will hit Russia even harder. This will largely cut the country off from its valuable foreign exchange reserves, which in turn will severely weaken the resilience of the Russian economy.
The question remains whether this package is enough to inflict Russia with enough damage to prompt President Putin to change his aggressive course. The answer is: probably no. In order to achieve this goal, significantly harsher penalties would be necessary.
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