The European Union has imposed sectorial sanctions on five Russian banks, including the country’s biggest, Sberbank, as part of economic steps that Europe, along with the US, have taken against Moscow over the crisis in Ukraine.
Russian mobile network MegaFon has decided to place 40 percent of its cash in Hong Kong dollars to diversify and de-dollarize. The move is also a preventative move to protect against Western-led sanctions.
The Ukrainian crisis should be a wake-up call for NATO and the UK, said Britain’s Defence Committee, which called for assertive measures to counter the “Russian threat.” Critics warn the committee’s “knee-jerk” proposals will only inflame tensions.
In a new wave of restrictions targeting Russia, the EU has added eight top officials and businessmen, including a Kremlin administration official, and three major companies to its sanctions list. The restrictions came into effect immediately.
The US and EU have banned the export to Russia of hi-tech oil equipment needed in Arctic, deep sea, and shale extraction projects. This will leave Western companies, which have an estimated $35 billion invested in Russian oil, in a bind.
The immediate impact on the Russian economy is not going to be crippling, but sanctions will work in the long run starving Russian banks and companies of funding over the next few years, Wolfgang Munchau, director Eurointelligence news blog, told RT.
For America, democracy is a state that sells its mineral rights and agricultural land to US investors, otherwise, it imposes sanctions, and that's what the US wants from Ukraine, professor of economics at the University of Missouri Michael Hudson told RT.
EU sanctions aimed at ‘imposing economic pain’ on Russia following the MH17 crash will hit the UK economy, Foreign Secretary Philip Hammond has warned, saying ‘you can't make an omelette without breaking eggs’.
Both the European Union and the United States announced a new round of sanctions against Moscow on Tuesday, accusing the Kremlin of supporting anti-Kiev militias in eastern Ukraine and threatening to cripple the Russian economy.