This year, the Russian economy is under tremendous international pressure. Practical measures applied by foreign countries to Russia are expressed in various kinds of sanctions. What is their nature? What is the impact of sanctions on the Russian economy? What opportunities are opening up for the Russian Federation due to changes in the external environment?
The essence of the sanctions
According to the point of view widespread in the expert community, the imposition of sanctions against the Russian Federation is mainly connected with the political position of Russia regarding the Ukrainian crisis. Western states, the main part of which are members of NATO, considered the actions of the Russian authorities in relation to Crimea and the eastern regions of Ukraine, in which, according to the countries of the Atlantic bloc, pro-Russian armed groups are unacceptable.
As such, sanctions are economic and political in nature. In the first part, this is a different kind of embargo, in the second - the inclusion of officials and legal entities in the relevant sanctions lists.
Sanctions periodization
Consider the sequence in which the introduction of sanctions against the Russian Federation. Experts believe that the first package of relevant measures was put into effect immediately after Russia supported the referendum in Crimea and included this region in its membership. Western states considered the actions of the authorities of the peninsula, as well as the position of the Russian Federation illegal. Subsequent rounds of sanctions were associated, analysts believe, with a further escalation of the situation in Ukraine.
Sanctions: a threat to the Russian economy
What could be the consequences of the imposition of sanctions on the Russian economy? Experts note that the greatest difficulties may arise in the field of import. The fact is that the Russian economy is quite dependent on the import of high technology, engineering products, drugs, and to a large extent food. The main import partners of Russia are precisely those that have applied sanctions against the Russian Federation. If the economic component of the relevant measures acquires a systemic character, then the shortage of imported products, experts say, will not be long in coming.
In search of an investor
The impact of sanctions on the Russian economy can be clearly seen in the aspect of attracting foreign investment. In particular, the credit ratings of the Russian Federation, which are the main indicator of the country's attractiveness for foreign capital, may suffer. The result of lower investment inflows may be a slowdown in GDP growth, economists believe. The Russian economy today, analysts say, is heavily dependent on foreign capital. RTS and MICEX stock exchanges fill liquidity largely due to attracting foreign investment.
However, experts believe that foreign capital may not necessarily be of Western origin. It is likely that the place of investors from the EU and the USA will be taken, say, by capitalists from the BRICS countries, which, according to many analysts, are now Russia's allies. And therefore, a decrease in ratings within the framework of methodologies developed in the USA and the EU may not play a significant role in terms of attracting investments.
Sanctions and the banking system
What can be seen the impact of sanctions on the banking system of Russia? In this area, analysts say, the potential for threats to the country's economy is greatest. The fact is that the Russian banking system is so integrated in the world (which, in turn, is largely controlled by the United States and its Western allies) that foreign financiers actually have access to key management mechanisms for it. The accounts of American and European banks are actively used by Russian businesses. And if the financial institutions of Western countries decide to freeze the relevant assets, then this can cause, experts say, significant damage to Russian enterprises working with foreign banks.
Sanctions (from the EU) were imposed on the largest Russian financial institutions, such as VTB, Sberbank, VEB. In particular, since the beginning of August, EU citizens have been prohibited from purchasing certain types of securities of these institutions. According to analysts, in practice this means only one thing - these Russian banks cease to have access to capital markets. And therefore, they may have problems with repayment of current debt obligations, registration of new loans and investments.
VISA - in Russia?
One of the most indicative precedents concerning such an aspect as the impact of sanctions on the banking system of the Russian Federation can be considered the blocking by the largest payment systems in the world - VISA and MasterCard - of bank cards of several credit and financial institutions of Russia at once, such as Sobinbank, AKB Rossiya , "SMP Bank". Clients of these banks could no longer pay using international acquiring channels. At the same time, experts agree that they will not completely disconnect from the Russian market. If this happens, there will be a threat to the stability of the EU financial system.
Another consequence of the sanctions may be the restriction of lending to Russian organizations in the west. The terms of loans in Western banks in many cases are preferable than within the Russian Federation (mainly due to lower interest rates). At the same time, the practical impact of sanctions on business in the aspect of lending may not be so significant if entrepreneurs can establish cooperation with other markets in terms of loans. One of the most promising Russian experts sees the Chinese version.
Banks do not care?
The Central Bank is ready to help Russian banks under sanctions. In particular, statements by the Central Bank's management that, if necessary, international currency reserves can be used for this purpose, have appeared in the media. stated that they are ready for sanctions. Sberbank management, in particular, announced that the institution has sufficient resources, management experience and level of expertise to continue working in the current economic and political conditions. Gazprombank and VTB also assured the public that the actions of the United States and the EU will not affect the financial stability of institutions. Thus, the impact of sanctions on the Russian economy in terms of the banking sector may not be so significant.
Sanctions and Opportunities
According to a number of economists, EU sanctions are an excellent reason to establish business in the Russian economy, which, due to its strong focus on oil exports, is not developing as fast as it could.
Analysts believe that the greatest potential is present in the field of import substitution. Russia has a sufficient amount of resources, both in terms of production capacities and raw materials, and in terms of the scientific component, in order to produce the bulk of goods imported from abroad.
Response potential
What are the mechanisms by which Russia can counter sanctions? First of all, it is worth noting the law adopted in 2006, long before the obvious preconditions of the Ukrainian crisis began to take shape, the law concerning special measures of an economic nature that may be applied if the country needs to respond to unlawful acts, which are a threat Russia's interests, at the level of international relations. Therefore, the basic legislative resources that can be used as a response to the imposition of sanctions against Russia are present. Moreover, there is evidence that work is under way in the structures of the Federal Assembly to create new legal acts that can expand the range of countermeasures of the Russian Federation under international pressure. In particular, there is an opinion that new laws may include provisions permitting the confiscation of assets of Western companies located in the Russian Federation (both state and private).
Response to sanctions
Despite the fact that the authorities of the Russian Federation considered the reasons for the imposition of sanctions, based on comments by senior officials, unreasonable and contrary to logic, countermeasures against Western countries, comparable to actions against Russia, were nevertheless applied. In particular, during the first wave of relevant international measures, the Russian authorities decided to compile lists of persons with Western citizenship who are prohibited from entering the territory of the Russian Federation.
When VISA and MasterCard, as we said above, stopped servicing the cards of several Russian banks, the Russian authorities decided to intensify the work, firstly, to develop a national payment system, and secondly, to bring the Chinese MPS to the Russian market - UnionPay, which could become a serious competitor to current world leaders. This would inflict significant damage, according to some economists, to hundreds of millions of dollars.
The most serious package of Russian countermeasures was the ban on the import into Russia of a huge range of food products, mainly produced by the EU food industry (as well as enterprises in Canada, Australia and the USA). In early August, the Russian president issued a decree. The list of goods that fell under the embargo was made up of a variety of food products - meat, dairy products, fish, vegetables, fruits. In monetary terms, the total volume of the corresponding imports, as analysts calculated, was $ 9 billion at the time countermeasures were introduced.
Also in August, adjustments were made in the light industry. In particular, in the public procurement segment, clothes made of fabrics, leather and fur were banned. True, experts did not consider this step by the Russian authorities as a direct response to the sanctions, since the corresponding restriction affected supplies from all countries, not counting those that, along with the Russian Federation, are members of the Customs Union, and not just Western ones.
The consequences of "anti-sanctions" for the EU
The fact that Western sanctions in the Russian economy can lead to problems at the level of imports, we have already said, citing several industries as an example. But will the foreign exporters themselves feel good at the same time, say, of the same engineering products. Those who supplied equipment to Russia? What are the possible consequences of sanctions for the EU? According to one of Reuters, Europeans most likely will not be comfortable. One of the most active partners of Russia in the economic sphere is Germany. There are figures: about 300 thousand jobs in Germany in one way or another reflect the employment of the population in the areas of interaction with the Russian Federation. Experts believe that exports from Germany to Russia may decline by several tens of percent (mainly in the field of engineering). At the same time, there is an opinion that the aggravation of relations with the Russian Federation will not have a significant impact on the general state of the economy of Germany. Just because Russia's current share in Germany’s foreign trade does not exceed 4% now. Thus, the impact of sanctions on business in Europe is seen by experts as sufficiently limited.
Grocery "anti-sanctions"
Consider the aspect regarding the most serious, according to experts, countermeasures of the Russian authorities - the ban on the import of products from the EU. Many analysts believe that European agricultural producers suffered from the embargo very significantly. Deliveries to Russia for many of them were a guarantee of profitability, and for some businesses it was the main sales channel. Analysts believe that food industry enterprises from the EU will not be able to find buyers in other markets. And therefore, in the near future, their business is unlikely to be profitable.
Europe Foundation
However, a number of experts believe that the consequences of the embargo on the EU may not be as significant as, in particular, the impact of sanctions on the Russian economy. The share of agricultural exports from the European Union to the Russian Federation is less than 5% in the economy of this political association. And this is despite the fact that Russia is the second largest market for the EU in this segment for the EU. There is also evidence that the EU is going to compensate for possible losses from "anti-sanctions" by the Russian Federation, using the funds of a specially created fund. True, its size, analysts say, is not very impressive - 400 million euros. The country that may suffer more from the “anti-sanctions” is Finland. Due to its geographical proximity, this state and the Russian Federation have close. Approximately 25% of export from Finland goes to Russia. However, the share of food in it is less than 3%.
Self-sufficiency perspectives
What is the effect of sanctions on Russian agriculture? Some experts believe that the food embargo against manufacturers from the EU has opened up great opportunities for Russian farmers. In many segments, market niches have freed, or at least become significantly less saturated. There is a point of view that agricultural producers from Russia are not yet very ready for a sharp increase in output, and in this case two scenarios are possible: filling niches at the expense of suppliers from countries that did not fall under the embargo, or, which is less desirable for the economy RF, the emergence of a tangible shortage of goods. And, as a result, price increases.
The economy of Russia today, many experts believe, cannot yet fully guarantee effective import substitution - including in the field of agriculture. Analysts note that the increase in selling prices for various products occurred quite soon after the introduction of "anti-sanctions". According to analysts, by the end of 2014, some types of commodity items may rise in price by more than 30%. On average, for products that form the main basket, price increases can reach about 15%. There is a possibility, analysts believe, that the quality of the products presented on the shelves will drop. In Russia, as well as in many countries where goods are supposed to be imported from, production standards are not as stringent as in Europe.
Montenegro, Iceland, Albania, Norway and Ukraine joined the individual sanctions of the European Union, adopted on March 17 and expanded on March 21.
On April 12, Canada imposed sanctions against the head of the Sevastopol election commission, Valery Medvedev, and his colleague from the Crimea election commission, Mikhail Malyshev, as well as against the Chernomorneftegaz oil and gas company.
On April 28, US authorities again expanded the sanctions list to include seven more Russian citizens and 17 companies. White House spokeswoman Jay Carney explained this by saying that Russia "has done nothing to comply with Geneva commitments." Carney also accused Moscow of involvement in violence in eastern Ukraine. The sanctions affected the Deputy Prime Minister Dmitry Kozak, the head of Rosneft Igor Sechin, the first deputy head of the Kremlin administration Vyacheslav Volodin. The list also included the presidential envoy to the CFD Oleg Belaventsev, the head of the Federal Security Service Evgeny Murov, the head of Rostec Sergey Chemezov and the head of the State Duma Committee on International Affairs Alexei Pushkov.
On the same day, April 28, the decision to expand the sanctions list was made by the European Union, and on April 29 the names of those on the list were published. The EU has expanded the sanctions list by another 15 people. It included Deputy Prime Minister Dmitry Kozak, Chief of the General Staff of the RF Armed Forces Valery Gerasimov, Head of the GRU Igor Sergun, Permanent Representative of the Russian President in Crimea Oleg Belaventsev, Head of the Ministry of Crimean Affairs Oleg Savelyev, Deputy Speaker of the State Duma Lyudmila Shvetsova, Deputy Speaker of the State Duma Sergey Neverov , Acting Governor of Sevastopol Sergey Menyaylo, Senator in the Federation Council from Crimea and Sevastopol Olga Kovatidi, representative of Lugansk militias German Prokopiev, People’s Governor of Lugansk Region Valery Bolotov, leaders of the so-called Donetsk People's Republic glare Andrey Purgin and Denis Pushilin, Deputy Head of the Donbass People’s Militia Sergey Tsyplakov, Head of the People’s Defense of Donbass in Slavyansk Igor Strelkov.
Canada’s sanctions list includes State Duma deputies Vladimir Zhirinovsky and Alexei Pushkov, the first deputy head of the Kremlin’s administration Vyacheslav Volodin, Russian Deputy Prime Minister Dmitry Kozak, member of the State Duma’s Foreign Affairs Committee Alexander Babakov, presidential envoy to the Crimean Federal District Oleg Belaventsev, head of the Federal Security Service Evgeny Murov , as well as the Rotenberg brothers.
Expobank and Rosenergobank were in the list of companies.
Japan introduced additional sanctions against 23 government officials of the Russian Federation who could be involved in violation of the sovereignty of Ukraine. The names of officials were not disclosed.
Swiss authorities have expanded by 15 people the list of persons subject to financial restrictions in response to the expanded list of the EU.
The Prime Minister of Canada said that sanctions are imposed against 16 Russian "entities" and apply to the following Russian banks and legal entities: InvestCapitalBank, Sobinbank, Northern Sea Route Bank, Aquanika, Avia Group LLC, Avia LLC Nord Group, ZEST CJSC, Sakhatrans LLC, Stroygazmontazh LLC, Abros Investment Company LLC, Volga Group, Stroytransgaz Holding Company and its four subsidiaries.
The EU Foreign Affairs Council has included 13 more people in the list of EU sanctions against those guilty, in his opinion, of destabilizing the situation in Ukraine. The list included the first deputy head of the Kremlin’s administration Vyacheslav Volodin, the commander of the Airborne Forces, Colonel-General of Russia Vladimir Shamanov, and the head of the State Duma committee on constitutional law and state building Vladimir Pligin. In addition, the prosecutor of Crimea Natalya Poklonskaya, the prosecutor of Sevastopol Igor Shevchenko, acting Head of the Federal Migration Service of Russia for the Republic of Crimea Petr Yarosh, acting Head of the Migration Service of Sevastopol Oleg Kozyura. The EU also decided to freeze the assets of two companies from Sevastopol and Crimea - Theodosia and Chernomorneftegaz.
The Canadian authorities announced the introduction of additional sanctions against six citizens of Russia and six Ukrainian supporters of federalization. The list of sanctions from the Russian side included: Chief of the Russian General Staff Valery Gerasimov, Commander of the Armed Forces of the self-proclaimed Donetsk People’s Republic Igor Girkin (Strelkov), Acting Governor of Sevastopol Sergey Menyailo, State Duma Vice-Speakers Sergei Neverov and Lyudmila Shvetsova, Russian Minister for Crimean Affairs Oleg Saveliev, 1st member of the Federation Council of the Federal Assembly of the Russian Federation from the executive branch of the Republic of Crimea Olga Kovatidi.
Swiss authorities have expanded by 13 people the list of persons subject to financial and visa restrictions in response to the expanded EU list.
Montenegro, Iceland, Albania, Liechtenstein and Norway joined the implementation of the new EU sanctions lists.
Australia introduced financial sanctions against 50 Russians and 11 companies due to the situation in Ukraine. Earlier, in March, Australian authorities announced the imminent imposition of sanctions against 12 Russian and Ukrainian officials.
The Australian government decided to extend the sanctions by another 38 individuals and introduce restrictions on 11 companies. Blacklisted names were not indicated then.
In relation to the Advisor to the President of the Russian Federation Sergey Glazyev, the Chairman of the Federation Council Valentina Matvienko, Senator Andrei Klishas, \u200b\u200bState Duma Speaker Sergei Naryshkin, deputies Elena Mizulina and Alexei Pushkov, Deputy Prime Ministers Dmitry Rogozin and Dmitry Kozak, Presidential Aides Vladislav Surkov, Vladimir Kozhin and Andrei Fursurs, Andrei Kozhin and Andrei Fursurs Head of the Presidential Executive Office Sergei Ivanov, First Deputy Head of the Kremlin Administration Vyacheslav Volodin and Alexei Gromov, Acting the head of Crimea Sergey Aksenov, businessmen Yuri Kovalchuk, Arkady and Boris Rotenberg, Gennady Timchenko, the head of Russian Railways Vladimir Yakunin, as well as a number of leaders of the unrecognized DPR and LPR. The list also included Bank Russia, InvestCapitalBank, SMP Bank, Stroygazmontazh LLC, Avia Group Nord LLC, Stroytransgaz Group, Volga Group, Chernomorneftegaz, as well as other companies and individuals.
Canada introduced additional economic sanctions and a ban on entry into the country for 11 citizens of the Russian Federation.
Washington synchronized its sanctions list with the European one. The United States imposed visa and financial restrictions on Vice-Speaker of the Russian State Duma Sergey Neverov, Federal Minister for Crimean Affairs Oleg Savelyev, as well as the Prime Minister of the self-proclaimed Donetsk Republic, Alexander Boroday, who had previously fallen under EU sanctions. In addition, US sanctions extended to the Donetsk and Lugansk republics as a whole and to Assistant to the President of Russia Igor Shchegolev.
The US authorities are also in relation to a number of Russian defense and commodity companies. The sanction list includes Almaz-Antey, Uralvagonzavod, NPO Mashinostroeniya and several Rostec structures: Kalashnikov Concerns (formerly Izhmash), Constellation, Radioelectronic Technologies (KRET), Basalt, and Design Instrument Engineering Bureau.
The sanctions included the largest Russian oil company Rosneft and Russia's largest independent gas producer Novatek, the oil terminal of Feodosia, as well as the Russian development bank Vnesheconombank and one of the country's largest commercial banks, Gazprombank. Sanctions against Russian banks do not imply a freeze on assets, but a ban on obtaining US loans for more than 90 days.
At their summit, European leaders limited themselves to agreeing to expand the criteria for sanctions and only by the end of July draw up a list of companies and individuals, including Russian ones, that would fall under EU specific restrictive measures.
Canada after the United States included in its sanctions list a number of Russian defense and commodity companies and banks. The sanctions included, in particular, Gazprombank, Vnesheconombank and the second largest gas producer in Russia, Novatek. The Canadian prime minister explained that the sanctions imply a cessation of lending to energy companies and financial institutions that were blacklisted.
15 names and 18 legal entities were added to the EU sanctions list. Among them are FSB Director Alexander Bortnikov, Director of the Russian Foreign Intelligence Service Mikhail Fradkov, Secretary of the Security Council of the Russian Federation Nikolai Patrushev, Head of the Chechen Republic Ramzan Kadyrov, Deputy Secretary of the Russian Security Council Rashid Nurgaliev, member of the Security Council Boris Gryzlov, FSB officer Sergei Beseda and State Duma deputy Mikhail Degtyarev . Among the companies are the Kerch Ferry Terminal, the Sevastopol Commercial Sea Port, the Kerch Commercial Sea Port, the Universal Avia State Enterprise, the Nizhny Oreanda Sanatorium, the Azov Distillery, the Massandra National Industrial and Agricultural Association , agricultural firm "Magarach" and the factory of champagne wines "New World".
The US Treasury announced the imposition of sanctions against the Bank of Moscow, VTB and Russian Agricultural Bank, as well as the United Shipbuilding Corporation of the Russian Federation.
The EU has introduced another economic sanction against Russia, which will be applied during the year. The EU has restricted access to EU capital markets for Russian state-owned banks. These are Sberbank, VTB, Gazprombank, Russian Agricultural Bank, as well as Vnesheconombank State Corporation, which are among the five largest credit institutions of the Russian Federation. The European Union has published a list of goods that cannot be exported for a number of projects in the Russian oil industry. It consists of 30 positions, it indicates, including some types of pipes and drilling equipment. New contracts for the import and export of weapons from the Russian Federation and for the sale of dual-use goods to Russia for the defense sector fell under the restriction.
The European Union is also the Russian defense concern Almaz-Antey, the low-cost airline Dobrolet and the Russian National Commercial Bank flying to Crimea. The list includes the first deputy head of the presidential administration, Alexei Gromov, four Russian businessmen - shareholders of Rossiya Bank Yuri Kovalchuk and Nikolai Shamalov, businessmen Arkady Rotenberg and Konstantin Malofeev, as well as two representatives of the self-proclaimed peoples of the eastern Ukraine.
For investments in Crimea.
The Swiss government expanded the sanctions list in connection with Russia's position in Ukraine and added 26 citizens of Russia and Ukraine and 18 companies to it. In particular, the list includes: Prime Minister of the self-proclaimed Donetsk People's Republic (DPR) Alexander Borodai, director of the Russian Foreign Intelligence Service Mikhail Fradkov, secretary of the Security Council of the Russian Federation Nikolai Patrushev and head of the Chechen Republic Ramzan Kadyrov.
On the same day, the Japanese government approved additional sanctions against 40 individuals and the Crimean companies Chernomorneftegaz and Feodosiya. The sanctions include the freezing of the assets of ex-President of Ukraine Viktor Yanukovych, Acting Head of the Republic of Crimea Sergey Aksyonov, Chairman of the State Council of the Republic Vladimir Konstantinov, former Deputy Chairman of the Crimean Council of Ministers Rustam Temirgaliyev, Deputy Commander of the Black Sea Fleet Denis Berezovsky, former governor of Sevastopol Alexey Chaal security services of Sevastopol Peter Zima, adviser to the speaker of the State Council of the Republic of Crimea Yuri Zherebtsov, senators from the Republic of Crimea Sergey I Tsekova Kovitidi and Olga, the head of the republican Central Election Commission Mikhail Malyshev, head of the election commission Valery Medvedev Sevastopol Governor Sergei Menyailo Sevastopol.
The head of the Federal Migration Service of Russia for the Republic of Crimea Petro Yarosh, the head of the Sevastopol Department of the Federal Migration Service Oleg Kozhura, the prosecutor of the Crimea Natalya Poklonskaya, and the prosecutor of Sevastopol Igor Shevchenko were also hit. The sanctions list also includes the commander of the self-defense forces of the proclaimed Donetsk People’s Republic Igor Strelkov (Girkin), the ataman of the Great Don Army Nikolai Kozitsyn.
Canada has expanded the sanctions list against Russia to include 19 citizens of Russia and Ukraine, as well as five Russian banks. Among the Russian banks that are on the list are: Bank of Moscow, Russian Agricultural Bank, Russian National Commercial Bank and VTB Bank. Canadian sanctions included a number of Russian security officials, including FSB Director Alexander Bortnikov, SVR Director Mikhail Fradkov, member of the Security Council of the Russian Federation Boris Gryzlov, Secretary of the Security Council Nikolay Patrushev, head of the 5th Directorate of the FSB Sergey Beseda, head of the FSB border service Vladimir Kulishov, deputy Secretary of the Security Council of Russia Rashid Nurgaliev, and State Duma deputy Mikhail Degtyarev. In addition, the list included the governor of the Krasnodar Territory Alexander Tkachev, the head of Chechnya Ramzan Kadyrov, assistant to the president and former head of the Ministry of Communications Igor Shchegolev, Russian businessman Konstantin Malofeev and shareholder of Rossiya Bank Nikolai Shamalov. The head of the Crimean Ministry of Internal Affairs Sergey Abisov, one of the leaders of the self-proclaimed DNR, Pavel Gubarev, his wife, the Minister of Foreign Affairs of the DNI Ekaterina Gubareva, the speaker of the Supreme Council of the DNI Boris Litvinov and the press officer of the LNR Oksana Chigrina also appear on the list.
In addition, several Crimean companies were on the list: the Kerch trade port and the Kerch ferry, as well as the Massandra winery, the Novyi Svet winery, the commercial port of Sevastopol, the National Institute of Grape and Wine Magarach, Universal-airline Air". The list also includes the Russian airline Dobrolet, United Shipbuilding Corporation.
The Verkhovna Rada of Ukraine adopted the law "On Sanctions", which provides for the possibility of introducing more than 20 types of sanctions against Russia, including the cessation of transit of energy resources. The law was signed by President of Ukraine Petro Poroshenko, on September 12, the law entered into force.
On September 1, Australia imposed a ban on the supply of arms and equipment to Russia for the oil and gas sector, the access of Russian state-owned banks to the Australian capital market, investment in or trade with Crimea. The sanctions list has been expanded to 63 individuals and 21 companies and organizations.
In addition, Australia has uranium in Russia.
On September 12, the European Union published a new sanctions list. Under the EU sanctions came Rosneft, Transneft, Gazprom Neft. The EU has banned the supply of dual-use goods to nine companies in the Russian defense sector, including Oboronprom, the United Aircraft Corporation (UAC), Uralvagonzavod, Kalashnikov Concern.
The EU to European companies to provide Russian partners with services for exploration and production of deep-sea and Arctic oil, as well as for shale oil projects.
The European Union has reduced loans for a number of state banks of the Russian Federation.
Deputies of the State Duma Svetlana Zhurova, Nikolai Levichev, Igor Lebedev, Ivan Melnikov, Alexander Babakov got into the new one.
The United States blocked the assets of five Russian defense companies accessible to American jurisdiction. The sanction list includes Almaz-Antey (one of the world's largest manufacturers of air defense systems), the Scientific Research Institute of Instrument Engineering (manufacturer of systems for combat aircraft and air defense systems), Mytishchi Engineering Plant, Kalinin Engineering Plant, and the company designated as "Research and Production Center in Dolgoprudny."
US access to the capital market for 6 banks of the Russian Federation. Sanctions affect Sberbank, VTB and its subsidiary Bank of Moscow, Gazprombank, Russian Agricultural Bank, and Vnesheconombank.
New US sanctions with Russian oil companies, including Gazprom Neft, Lukoil and Rosneft. In addition, Gazprom, Surgutneftegas, Transneft, Rostec appear in the list.
Canada announced the expansion of the list of sanctions against Russia. The new sanctions list includes Sberbank and five defense enterprises of the Russian Federation: Research and Production Center in Dolgoprudnoy, OJSC M.I. Kalinin Machine-Building Plant (MZiK), Mytishchi Machine-Building Plant OJSC, and Instrument Engineering Scientific Research Institute named after V.V. Tikhomirov "(NIIP) and OJSC" Altair "Marine Research Institute of Radio Electronics (OJSC" MNIIRE "Altair"). The list of people who were denied entry to Canada and potential assets were frozen included Deputy Minister of Defense of the Russian Federation Yuri Sadovenko, Deputy Minister of Defense of the Russian Federation Dmitry Bulgakov, First Deputy General Staff of the RF Armed Forces Nikolai Bogdanovsky and Commander-in-Chief of the Russian Army Oleg Salyukov.
The EU candidate countries Montenegro, Iceland and Albania, as well as Liechtenstein, Norway, members of the European Economic Area and Ukraine joined the EU sanctions package on Russia of September 12.
The EU included in the sanctions list of candidates at the November 2 elections of the heads and parliaments of the self-proclaimed Donetsk and Lugansk people's republics and representatives of the leadership of the LPR and DPR. The organizations that fell under the sanctions were the public organizations of the DPR “Donetsk Republic” and “Free Donbass”, from the LPR - “Mir Lugansk Region”, “People’s Union” and “Lugansk Economic Union”. In total, the list contains 13 names and 5 public organizations. Defendants on the list are prohibited from entering the EU, and their assets in the European Union are frozen.
The Japanese government imposed sanctions on a number of individuals and organizations in the Donbass. In total, the list contains 26 people, as well as 14 organizations.
US President Barack Obama announced that he had signed a decree on new sanctions against Russia and the Crimea, which had joined it.
The decree prohibits new investments by US residents in the Crimean region of Ukraine, the import of goods, services, technologies into the USA from the Crimea, as well as the export, re-export, sale and supply of goods, services and technologies from the USA or by persons residing in the USA in the Crimean region.
It applies to banks operating in the Crimea, as well as to financial institutions that directly or indirectly carry out operations with the Crimea.
From the same day, the United States against 24 citizens of Russia and Ukraine, as well as a number of companies. Among those caught under sanctions is the Marshall Capital Partners fund of Konstantin Malofeev. The list of sanctions also included a number of leaders of the Crimea and Donbass, as well as the biker organization Night Wolves.
Canada supplemented the sanctions list with another 11 citizens of the Russian Federation. It included 10 parliamentarians, among whom were the deputy speaker of the State Duma and the head of the United Russia faction Vladimir Vasiliev, deputies Leonid Kalashnikov (Communist Party), Igor Lebedev (LDPR), Oleg Lebedev (LDPR), deputy chairman of the State Duma Nikolai Levichev (" Fair Russia "), First Deputy Chairman of the State Duma Ivan Melnikov (Communist Party), deputies Viktor Vodolatsky (" United Russia "), Svetlana Zhurova (" United Russia ") and Vladimir Nikitin (Communist Party). In addition, the list included the deputy chairman of the Federation Council Yuri Vorobyov, as well as the head of the representative office of the self-proclaimed Donetsk People's Republic (DPR) in the Russian Federation, Andrei Rodkin. Thus, the number of individuals who fell under Canadian sanctions reached 77 people. The new sanctions package also includes restrictions on the export of technologies that are used in the oil and gas industries.
EU sanctions against the economy and tourism sector of Crimea entered into force. In particular, ships providing cruise services are prohibited from entering the ports of Sevastopol, Kerch, Yalta, Feodosia, Yevpatoriya, Chernomorsk and the port of Kamysh-Burun. In addition, the European Union has expanded more than six times the list of goods and technologies prohibited for supply to the Crimea and for use in the Crimea in the fields of transport, telecommunications, energy and exploration, production and production of oil, gas and minerals. The list has included more than 160 items.
Due to US sanctions, two international payment systems - Visa and MasterCard - decided to suspend the service of cards of Russian banks operating in the Crimea.
The head of the EU diplomacy Federica Mogherini confirmed the extension of individual sanctions against Russia and the Donbass militias until September 2015.
The EU has unveiled a new list of individual sanctions against those whom the EU considers responsible for destabilizing the situation in Ukraine.
Canada announced the introduction of new sanctions against 37 individuals and 17 organizations from the Russian Federation and Ukraine.
It became known that by decree 13660 of March 6, 2014, US President Barack Obama extended the sanctions against Russia for a year.
Russian response sanctions
On March 20, in response to sanctions against a number of Russian officials and deputies of the Federal Assembly, the Russian Foreign Ministry published a list of officials and members of the US Congress who are blocking entry to the Russian Federation. The list includes nine people.
March 24, and in response to Canadian sanctions, the Russian Foreign Ministry published a list of 13 Canadian officials, members of parliament and public figures of Canada who are closing entry to Russia.
On April 1, this list was replenished with 10 names, among them - former Prime Minister of Ukraine Yulia Tymoshenko and leader of the Right Sector Dmitry Yarosh.
Russian Foreign Ministry spokesman Alexander Lukashevich said that Moscow has taken retaliatory measures to expand sanctions lists from the United States, the EU and Canada, they are largely mirrored. Moreover, Russia will not make public the names of specific individuals against whom it imposes sanctions in response to the sanctions lists of Western countries. According to the Foreign Ministry, the persons on the “stop list” will find out that they are on the Russian “black list” when they cross the Russian border. "
The head of the Chechen Republic, Ramzan Kadyrov, has imposed sanctions against US President Barack Obama, European Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, EU High Representative for Foreign Affairs and Security Policy Catherine Ashton and European Parliament President Martin Schulz. Kadyrov instructed to freeze their bank accounts and any assets; the listed politicians are prohibited from entering the Chechen Republic.
For a year, Russia has limited the import of a number of goods from countries that have imposed sanctions against it.
Russian President Vladimir Putin on August 6 signed a decree on the application of certain special economic measures to ensure security. The corresponding list includes beef, pork, fruits, poultry, cheeses and dairy products, nuts and other products.
The List of Agricultural Products, Raw Materials and Foods, the country of origin of which is the United States of America, European Union countries, Canada, Australia and the Kingdom of Norway, is approved.
Later, goods that for one reason or another were difficult to substitute for Russia were excluded from the list.
On August 11, the Russian government limited government purchases of foreign consumer goods. According to the list of goods, purchases not related to the state defense order are not allowed in foreign fabrics, outerwear and overalls, leather clothes, underwear, footwear, fur products and others. The restriction does not apply to goods manufactured in Belarus and Kazakhstan and goods not produced in the Russian Federation.
Japanese Ambassador to Russia Tikahito Harada was presented with a list of Japanese citizens who are restricted from entering Russia in response to Tokyo sanctions.
Material prepared on the basis of RIA Novosti information and open sources
Sanctions against Russia have become a trigger for many events in the economy and politics of Russia and other countries. What is the reason, essence and role of sanctions?
The history of recent sanctions against Russia
After the memorable Maidan event of 2014 in Ukraine, the political situation around the world began to rapidly transform. Up to this point, there were no pronounced disagreements between the Russian Federation and other states, or they were of a completely familiar working nature. But in 2014, the Maidan took place, and Ukraine came under the control of a group of people who began to build exclusively pro-Western policies for the country, which ultimately turned out to be many troubles for Russia, including anti-Russian sanctions of the United States and many other countries.
Most of the people in 2014 in Ukraine were not ready to accept such changes. And it is quite expected that in many regions, especially the south-eastern, as well as in Crimea, protest moods began to rise. These initiatives were actively supported by pro-Russian politicians, especially deputies of the presidential Party of Regions.
Russian politicians also played a significant role in creating resistance to the Kiev authorities, who began to actively promote the ideas of an uprising of the Russian population of Ukraine against the political regime established there.
First, it resulted in the Crimean branch (see) with the holding of a referendum in it for independence and accession to Russia, and then in a full-scale war in the South-East of the country (Donetsk and Lugansk regions), where after the same referenda there was no accession to the Russian Federation.
In 2014-2015, a full-scale war broke out in the Donbas using all possible types of weapons. The Ukrainian side stated that it was fighting separatism and the desire of the forces supported by Russia to separate part of the country, Russia claimed that a civil war was going on in Ukraine and it had nothing to do with it.
The reaction of the world community was expressed in the form of sanctions
As a result, the world community, led by the United States and Europe, unequivocally sided with Ukraine and began to introduce economic and political barriers and restrictions against the Russian Federation. Anti-Russian economic sanctions in the eyes of the upper classes of these countries became the main instrument of pressure on Russia to stop allegedly sponsoring separatism in Ukraine and providing military assistance to Donbass militias.
Since the start of the introduction of bans, sanctions have only expanded and now, in 2018, they have already reached a very serious level. From the beginning of 2018, ever new restrictions that should affect vital areas of the economy have simply rained down on Russia. The essence of anti-Russian sanctions is pressure on the country's foreign policy, carried out by the president of the Russian Federation.
Interesting fact: One of the episodes of the war that played against the Russian Federation was Malaysia Airlines, where about 300 European tourists were killed. According to one version, a civilian Boeing was shot down accidentally during the fighting. This incident was also used as an occasion for serious restrictive measures against the country. According to the governments of the United States and several EU countries, it was Russia that provided the Buk air defense system with the help of which the plane was shot down.
U.S. Sanctions in 2018
The first who went to the introduction of various prohibitions and restrictions against the Russian Federation were the United States. Here she began to develop long lists, which included various individuals and companies involved in the situation in eastern Ukraine and supposedly financing and supporting separatism. Later, especially in 2018, the case took on a much larger scale and problems began to be created even for people and companies who had nothing to do with the aggravation in Ukraine.
The initial reason for the introduction of anti-Russian sanctions by America was indicated as follows: this was a condemnation of Russia's actions in Crimea, its support for the separatist movement of the Southeast, and also a significant incentive to stop the so-called Russian aggression. The Russian Federation has received clear claims against it - it must comply with international law and laws, act within the framework of the Budapest memorandum, completely stop shattering the situation in Ukraine and move to a constructive dialogue with it to resolve the situation. Later, the need was added to comply with the Minsk agreements, multiple ceasefire regimes, etc.
When Donald Trump took office, anti-Russian sanctions increased significantly, although their reasons remained the same. In 2018, a flurry of new restrictions followed. But now their emphasis has shifted significantly - the United States first saw that their previous sanctions did not have much success and decided to hit right in the heart - in the inner circle of President V.V. Putin.
Restrictions against individuals and legal entities
Anti-Russian sanctions in 2018 included restrictions against a large number of individuals (more than 200) and legal entities (several tens) and their list is constantly updated. The tactics of the American side’s behavior are now simple - put pressure on the oligarchs and leading companies of the country in order to arouse the elite’s displeasure with the actions of Vladimir Putin and begin to put pressure on him to change the characteristics of foreign policy.
The implementation of anti-Russian sanctions is tightly controlled by employees of the US Treasury, so no concessions and weaknesses are expected here in the near future.
In the photo: Vladimir Putin and Donald Trump
Trump also took a clear position - the Russian Federation should change its behavior and stop supporting separatism, return Crimea to Ukraine and leave the Southeast. Only after that it will be possible to talk about some kind of positive dialogue and correction of the situation, according to swissinfo.ch.
Russian counter-sanctions in response to sanctions
Since the consequences of anti-Russian sanctions for Russia are rather painful, no one is going to leave the question of an adequate answer without attention. Just the other day, the State Duma adopted a law providing for America. Their essence is as follows:
- President Vladimir Putin may impose restrictions or prohibitions on engaging with certain unfriendly countries or companies;
- There may be restrictions on the export and import of raw materials, various products;
- Many Western companies will no longer be able to take part in the processes of privatization and government procurement.
After introducing the next list of restrictions, along with which the ruble exchange rate weakened significantly, the United States rated the effect of anti-Russian sanctions as very positive and effective.
Interesting fact: among deputies, the option of banning the import of about 1000 names of imported medical preparations (except those that are irreplaceable!) is being seriously discussed. Many people are wary of such a decision and expect a rise in price and a shortage in pharmacies. It remains to hope for a domestic manufacturer and analogues from other friendly countries.
It is important to understand that the European Union in the matter under consideration is moving in the wake of the United States and is largely acting against its goals, ambitions and benefits. Any friction with the Russian Federation for European countries is fraught with serious consequences, rising prices for gas and oil products, a decrease in their own sales markets, etc.
Nevertheless, America’s influence here is so great that most of the EU countries also introduced a package of anti-Russian sanctions against the Russian Federation, also in connection with the Ukrainian events: the secession of the Crimea and the war in the Donbass.
European anti-Russian sanctions, a list of which is even available on Wikipedia, affect the majority of the country's elite, people involved in supporting the separatist movement in the Crimea and the South-East, owners of large companies, politicians, military, businessmen.
Here are just some of the famous people and enterprises affected by anti-Russian sanctions:
- Sergey Naryshkin;
- Valentina Matvienko;
- Dmitry Rogozin;
- Ramzan Kadyrov;
- Dmitry Kiselev;
- Vyacheslav Volodin and many others.
The list of companies includes:
- Theodosius
- "Dobrolet";
- Almaz-Antey;
- “Kerch Commercial Sea Port”;
- Gazprom Neft;
- Rosneft and others.
In total, 150 individuals and 38 large companies affected the EU’s anti-Russian sanctions. .
As for the response, the European Union has become the main counter-sanction to ban the import of a large list of food industry products. At the same time, a national import substitution program was announced, as a result of which the domestic producer must make up for the deficit arising from the ban on the import of goods. Such measures are aimed at supporting the Russian manufacturer and gaining independence from Western products. In general, the program worked successfully and there was no food shortage in the country.
Recently, Trump and Merkel discussed anti-Russian sanctions and promised to continue to adhere to such a policy until the moment when their political tasks are completed. Also, Angela Merkel, German Chancellor, has repeatedly expressed her opinion about anti-Russian sanctions, considering them harmful for a normal partnership, but necessary At the moment.
Interesting fact: The main reason for the EU’s anti-Russian sanctions is still US pressure, as our parties are vitally interested in interaction and normal relations.
In the photo: Vladimir Putin and Angela Merkel
As the most affected party, Ukraine also considered it its duty to introduce a number of restrictions against Russian enterprises and many individuals. The specificity here is that for a given country, any new anti-Russian sanctions are most often a shot in the foot, since the post-Soviet economies are tightly connected and have only recently been one.
It is difficult to find companies of the Russian Federation that would suffer too much from Ukrainian restrictions, but in Ukraine, almost any large enterprise, serious production and even the work of scientific institutes were more focused on interaction with the Russian Federation. As a result, judging purely politically, restrictions are imposed and everything seems to happen in the logic of events, but mainly Ukrainian enterprises and citizens of this country suffer from this.
Commodity circulation between the states has fallen record-breaking, and there is nowhere to go for surplus Ukrainian products - Europe does not need them, it is full of its own, local people do not have money to buy. As a result, the domestic market and production of Ukraine only suffer and gradually degrade. Every Kiev bill on anti-Russian sanctions is an alarm and a precarious position of hundreds of enterprises and millions of workers receiving penny wages.
The influence of anti-Russian sanctions on Ukraine is very negative, however, the list of companies and individuals that fall under their influence is simply huge.
In the photo: Petro Poroshenko and Arseniy Yatsenyuk
Russia's response to Ukraine’s sanctions
The response of Russia is not so aggressive, but it is and affected a large number of companies. As mentioned above, Ukrainian prohibition measures in their overwhelming majority are shots in the leg, arm, and the whole body, so even if there was no answer, the Ukrainian economy is rapidly degrading and losing even the likeness of a civilized country. Vivid confirmation of what was said: the country was in the top 5 of the poorest in the world, each month from here about 100,000 people. If support for anti-Russian sanctions continues, it is obvious that its results will be even more disastrous.
Responsibility for compliance with anti-Russian sanctions
More recently, State Duma deputies passed a law that provides . This law on anti-Russian sanctions decrees that every individual or legal entity that refuses to perform its usual functions within the country because of fears of falling under Western restrictions can be mistaken for a pest and prosecuted. These measures were proposed by deputies, not Putin, but it is obvious that anti-Russian sanctions in connection with it should act less painfully and noticeably.
As for the punishment, for violation of the law an arrest of 4 years or a fine of 600,000 rubles is provided. But other variations are possible here. The law is still very "raw" and it is more difficult to discuss it more specifically. Also at the moment there are no precedents for its use.
As a conclusion, we note that the new US anti-Russian sanctions are a painful blow, but they will not go unanswered and the reaction of the country's authorities has already followed at the legislative level. Anti-Russian sanctions today are first and foremost politics and they must also be combated in the political arena.
In 2014, all the inhabitants of our country were shocked with the news - the European Union and the United States impose sanctions against the Russian Federation. Their list is even too extensive. Well, the topic is detailed and important, and it is worth discussing it, starting with the events of spring 2014.
Background
Two years ago, in March, the Crimean peninsula returned to. The decision was made by the residents of the republic, because they voted in a referendum. And at that moment, representatives of other countries and states suddenly remembered the Crimea and considered that this was a destabilization of the situation in Ukraine initiated by the Russian government. They also decided that this issue concerns them directly. Therefore, Europe and the United States began to actively impose sanctions against the Russian Federation. The list is hundreds of points. By the way, the US government was the initiator of all this. Other states actively supported the decision to impose bans. So it was planned to influence Russian politics and "return Crimea to Ukraine."
Initially, the list of bans was not as large as it had become by 2015. The expansion of the list was due to the aggravation of the situation in the eastern part of Ukraine. In which, of course, Russia was also to blame - as representatives of other states considered. However, now the situation is improving. Many representative offices understand that it is unprofitable to quarrel with the Russian Federation. And the prohibitions are gradually removed. This should be described in more detail.
USA
This is the initiator who first imposed sanctions against the Russian Federation. The list began to be compiled even before the return of Crimea to Russia. So, for example, on March 4, 2014, the military and investment cooperation of America with the Russian Federation was frozen. Like bilateral conference planning negotiations. Bank accounts of certain officials were also frozen. And they also banned the issuance of visas.
Subsequently, the United States stopped cooperating with the Russian Federation in the fight against narcotic substances. On 05/07/2014, the Russian Federation was completely excluded from the trade program, which enabled states with economies in transition to send certain goods to America for export. Since the summer of that year, projects planned by the World Bank in Russia have ceased to be supported by the United States. Large companies such as Gazprom, Novatek, Lukoil, Rosneft and other well-known corporations also fell under sanctions.
Against the Russian Federation, the list was very impressive. Sberbank, VTB, Rosselkhozbank, Bank of Moscow, Vnesheconombank have all been banned. True, somewhat absurd, since the essence is that US citizens should not buy bonds from these banks.
Bans that are hard to understand
Naturally, the US government was not pleased that Russia practically didn’t react to all this. Moreover, everything, on the contrary, began to flourish. So, for example, the Kerch bridge began to be built in Crimea. They began to lay lines through the strait, which would help supply the peninsula with electricity. This project, by the way, is already finally completed.
After that, the US government decided to impose new sanctions against the Russian Federation. And they touched the Crimea. In particular, the Kerch and commercial ports of Feodosia, Kerch, Yalta, Yevpatoria and the hero city of Sevastopol.
True, many did not understand exactly how these prohibitions should affect the inhabitants of the country and the peninsula. It turned out that the US government did not like that Greek and Italian-made ferries traveled across the strait. But nothing really happened - Protoporos, the Olympics and other ships continue to successfully transport vehicles and people.
EU: visa ban
US sanctions against Russia are in the tens. All of them list a very long time. The EU has also compiled an equally impressive list. Crimeans, for example, were banned from issuing Schengen visas of any type. However, as practice shows, this ban was only for sight. All the same, seals continue to be placed in the brand new Russian “foreign”. Is that the process of obtaining a visa has become a little more complicated for residents of the Crimea. And the embassies of the Netherlands, Italy, Greece and the Czech Republic lifted the bans altogether. They issue visas to Crimeans without any problems. So the “visa” sanctions of the EU against the Russian Federation also turned out to be weightless.
When will the sanctions against Russia be lifted? This is unknown. Too many of them. Each state has introduced its own prohibitions, and the Russians do not even know about the vast majority of them. For example, the US government banned flights of its civilian aircraft in Simferopol airspace. True, before that, there were no flights from the local airport to the United States, but this is not so important - the sanction was still included in the list.
However, in fairness, it should be noted that one significant ban still affected many residents of our country. This is a US sanction imposed on the Visa and Master Card payment systems for the banks listed above. However, they immediately decided to solve this problem. The creation of our own payment system has begun.
Another significant sanction is the suspension by the German government of the implementation of a military contract with the Russian Federation, which amounted to 120 million euros.
By the way, Russia did not stand aside, and introduced its “anti-sanctions”, which came as a surprise to the EU and the USA. Of course, without consequences for the economy, this whole situation with prohibitions cannot get through. However, the catastrophe as such did not arise.
Other bans
The European Union has banned many public figures, politicians and even actors from visiting their countries. Also, residents of these states are not allowed to buy real estate in the Crimea. The European Union also issued a decree that the supply of certain goods to the peninsula (the number of items of which is about 200 pieces) is prohibited.
Since sanctions should have some influence, the European Union, like the United States, expected a reaction. What Russia agrees to give Crimea to Ukraine, for example. This did not happen, so Europe could only do that to extend the effect of all its prohibitions. First - until 01/31/2016, then - until 06/23/2016. Since the prohibitions failed to achieve any changes, on June 22 of this year their effect was extended until 06/23/17.
This is in terms of the Crimea. Sanctions extending to the mainland of Russia are extended until 01/31/2017. When the sanctions against the Russian Federation will be lifted, it is not known. Strictly speaking, this is not so important. After all, as you can see, they do not have much influence.
What sanctions against the Russian Federation were introduced in connection with the events in the Crimea? What consequences did they have? How likely is the immediate abolition of all restrictions and what is the true reason for their application to Russia?
The events in Crimea in the spring of 2014 related to his secession from Ukraine and accession to the Russian Federation caused a great resonance in the world political arena. Many powers found in Russia's actions a threat to the existing order and took the exact opposite position, aimed at deterring and preventing such precedents. Even despite the previous conflict and the civil war in Ukraine, as a result of which the Republic of Crimea was forced to separate to some extent in order to maintain its political and economic stability, becoming a part of Russia.
Although the question of the historical affiliation of the Crimean peninsula remains quite controversial, most Western states see a de facto crime in Russia's actions. Sanctions against the Russian Federation were aimed at forcing the state to change its decision regarding the disputed territory. What influence they had on the domestic economy and the political situation throughout the world, we will consider in the following material.
First, let's define the terms and their meaning. It is known that in the general sense, sanctions are some restrictive measures in the form of punishment for any misconduct or actions. Their goal is to create adverse conditions for the object of application and force it to change the selected course. Also, the very fact of the imposition of sanctions shows the extreme disagreement of the participants in the world community with any political decisions of its individual members and is aimed at forcing the state to change the chosen political course peacefully.
World practice provides for the following restrictive measures against states:
- economic sanctions;
Economic measures imply a weakening of the economic situation regarding foreign trade. For example, a state may prohibit the export of its goods to a country that has been imposed a restriction. The ban also applies in the opposite sense - the import of products of the same production ceases.
Since for many countries international relations are based on trade, suppliers lose their sales market, and consumers cannot purchase a number of goods because their import has been stopped. We have to look for new channels, which is associated with certain inconveniences and additional costs.
Political measures of influence directly affect participants who have weight and authority in the international political arena. It can be prominent statesmen, heads of large companies and international holdings, or simply authoritative people, to whose words they are listened to all over the world.
As a result, as a result of the imposition of sanctions on political and economic influence, it is assumed that the state, the object of the restrictions imposed, will be isolated to some extent from the rest of the world. How global will the impact on the situation inside the country itself depends on the future of the economy and the general standard of living of citizens. How quickly and efficiently the government can reorient the economy from export and import of goods to domestic consumption, the introduction of sanctions against the bulk of the population, economic development and the stability of the political situation will be significant or inconsequential.
Economic sanctions against the Russian Federation
Let us consider in more detail the sanctions against the Russian Federation, which have the ultimate goal of weakening the economy by limiting international trade and other commercial relations.
Economic sanctions against Russia:
- An embargo is a ban on the import of goods into the country and, accordingly, the export from it. A fairly effective way of influencing, since foreign trade can form an impressive share of GDP.
- The measure will not be effective enough only if the state is fully capable of providing itself, for example, with the same food or everyday goods. In addition, in contrast to the expectations of opponents, Russia's economic isolation can have a beneficial effect on the general condition of the economy and even contribute to its enhanced growth due to the development of private entrepreneurship, small and medium-sized businesses.
- The ban on the circulation of certain categories of goods with the country subjected to sanctions. This measure involves stopping the import and export of, for example, weapons or high-tech products. Here the consequences are similar to the application of the embargo measure, and will have tangible results in the case of the total dependence of the disgraced state on this product and the inability to find a replacement for it.
- The third way to economically strangle Russia is by imposing restrictions on the activities of financial institutions, organizations, companies and investors from third countries, who dare to continue relations with organizations and firms of the rogue state. This applies, for example, to investments in business or construction, the provision of technical support services for complex equipment, questions and advice on supporting production facilities, and so on. Thus, they get sticks to the wheels from the initiator of the sanctions. Since directly under the law a third party is not obligated to terminate beneficial cooperation.
- Financial restrictions in relation to organizations, institutions or individual citizens of the offending state, which involve the arrest or freezing of their bank accounts or other assets and other actions of a similar nature.
Economic measures can have global implications for an isolated state, and pose a serious threat to the well-being and current standard of living of citizens. In particular, many experts attribute the economic crisis in Russia precisely to the negative consequences of the application of sanctions by Western countries, while others argue that the crisis provoked a predominantly lower world oil price.
Political sanctions against the Russian Federation
The measures of political influence in relation to the country, whose actions cause rejection of another state or the world community, are as follows:
- Breaking diplomatic relations, recalling ambassadors and consuls. What this leads to: the level of interaction of political actors at the international level is significantly deteriorating, communications, contacts and international relations are collapsing, and it is difficult to resolve important issues of the foreign policy of both states.
- Social and sports measures - restrictions for participants in international competitions, competitions, contests and so on. Someone else claims that sport is free from politics! This has long been wrong, and the past Olympic Games are a direct confirmation of this! Against the background of such politicization of sports, one involuntarily wonders how deeply politics has penetrated all spheres of our life.
- Restrictions on private individuals - citizens of fined states. This is usually a partial or complete entry ban for citizens suspected of committing antisocial or unlawful acts. Or simply those whose social or socio-political activities for a number of reasons do not suit the initiator of the application of sanctions.
Political sanctions are the cessation of all types of international cooperation and a kind of boycott of relations with Russia, which, however, are not capable of inflicting such significant damage in comparison with the effect of economic restrictions. Nevertheless, in the already difficult political situation, it becomes especially difficult to find ways to resolve it and quickly resolve emerging issues, both on one side and on the other.
Sanctions USA against the Russian Federation
The first to impose sanctions against the Russian Federation in connection with the support of Crimea, which proclaimed its independence and intention to become part of the Russian Federation, were the United States of America. The explanation for this political decision - in the actions of the Russian side was seen as unacceptable interference in the internal affairs of another sovereign state - Ukraine.
The reasons that served as the basis for the imposition of sanctions against the Russian Federation
It should be noted that the United States from the very beginning of the destabilization of the situation in the former Soviet republic supported the opposition. The goal was to seize the Ukrainian bridgehead with the proposed change of government and use the advantageous proximity of Ukraine to the Russian Federation. Thus, by the time the annexation of Crimea began, a situation had developed in which the newly-minted government had to dispute the sovereignty of Ukraine, the Russian side could not recognize the legitimacy of power for obvious reasons.
In this regard, Russia could not consider the new rulers, who came to power through a military coup, as full-fledged subjects of international law. And also to consider their claims regarding the illegality of the actions of the Crimean Republic, which made a politically significant decision to secede from Ukraine by popular vote.
For an unclear reason, the United States strongly supported it in the issue of the legality of the claims of the new Ukrainian government in relation to Crimea. This is precisely the interest of the superpower, which, unlike the Russian side, for some reason was not embarrassed by the fact of the complete coup d'etat. The United States recognized the new government of Ukraine as legal.
Thus, the actions of the Russian Federation automatically fell into the category of contradicting the norms of international law, with all the ensuing consequences. And the United States has actually confirmed its involvement and assistance in destabilizing the situation in Ukraine in order to achieve a change in the ruling regime.
What sanctions were applied against the Russian Federation
The United States of America together with Canada imposed restrictive sanctions against the Russian Federation on March 17, 2014, at the height of the Crimean Spring. Seeing that the events in Ukraine did not develop according to the developed scenario (the fact of participation and sponsorship of the coup by the West is no longer in doubt), it was decided to use additional leverage on the Russian Federation. The true purpose of applying the sanctions was to force Russia not to interfere in the process of a change of power in the former Soviet republic, which would allow it to be fully controlled.
The introduction of restrictive measures took place in the context of the beginning of the revival of the Russian economy, thereby representing a fairly significant blow to its development. The United States also at that time had strong economic ties with Russian companies, which were sacrificed for purely political reasons.
The first sanctions against the Russian Federation were influential Russian political and public figures involved, according to US intelligence, in what is happening in Ukraine. In total - 11 people, and the legitimate president of Ukraine Viktor Yanukovych was among them! And although this involvement was not even slightly substantiated or confirmed by facts, this did not affect the decision-making. For this circle of people, a ban on entering the United States was designated, and assets and bank accounts in financial and other institutions within the jurisdiction of the United States were blocked.
Blacklisted Russian citizens had no property and assets in the United States, and also did not plan visits in the foreseeable future. About which an official statement was made in response to the restrictions adopted in relation to them. The United States, in turn, responded that in case of non-compliance with the requirements, the circle of persons can be significantly expanded.
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This was done after the referendum in Crimea, according to the results of which it was decided to withdraw from Ukraine. The United States replenished the sanctions portfolio with another 19 citizens of the Russian Federation and Crimea. Among them were not only politicians, but also large businessmen who had nothing to do with political affairs. However, they were close to President V.V. Putin, and so it was planned to put pressure on him. In July 2014, sanctions against the Russian Federation touched the heads and leaders of the largest Russian enterprises in the defense and raw materials sectors.
The United States sanctions lists for Russian citizens and organizations were regularly replenished until September 2016, and this is probably not the end, since the validity of the sanctions has not been determined. Some US sanctions against the Russian Federation regarding military and space cooperation, as well as some of the most important areas of joint activity, were lifted, or mitigated. In total, in September the black list includes hundreds of individuals and legal entities from Russia, Ukraine and Crimea.
Currently, the US government is considering options to introduce new sanctions against the Russian Federation in connection with military operations in Syria. Officials argue that such a policy with regard to impact on the Russian Federation is quite effective. On the other hand, they also recognize the indisputable fact that no significant changes in the policy of the Russian Federation in relation to what is happening in Ukraine as a result of the application of such measures were achieved. This once again confirms the importance for the States of the very fact of applying restrictions on Russia in order to demonstrate its superiority.
EU sanctions against the Russian Federation and the participation of other countries
The EU states, in fact, in full force have supported restrictive measures against the Russian Federation under pressure from the United States. The economies of many of them have suffered greatly as a result of Russia's response. However, in their opinion, they could have suffered more serious damage, if they had taken the opposite side. In turn, Europe, by analogy with the States, restricted entry for a number of individuals, the list of which is replenished to this day.
Also, their accounts are subject to freezing and assets are blocked if they are located in European countries that have adopted sanctions against the Russian Federation. A little later, Australia, Japan and a number of other states joined the restrictive measures against Russia, whose cooperation with the States is of global importance for the economy and political weight in the world.
The US and the EU, in an attempt to isolate the Russian Federation as much as possible from the rest of the world, promoted its sanctions policy among all other countries. They hooked up the UN, which has repeatedly made anti-Russian appeals. As a result, even Switzerland, which is not a member of the EU and always prefers neutrality, has accepted sanctions against the Russian Federation! However, the majority of the world community did not manage to get support - they are South America, all of Asia (excluding Japan), the African continent and the Arabian Peninsula.
Russian response and consequences
The first response to sanctions against the Russian Federation by the United States and the West was the food embargo on all of them, which entered into force in August 2014. The food embargo of Russia is valid until the end of 2018, and may be extended further.
This measure hit the economy of a number of countries, a fair share of whose GDP was formed precisely due to food exports: for example, Poland, whose main consumer of agricultural products was Russia. For this reason, some European states do not support new sanctions against the Russian Federation and advocate the abolition or mitigation of existing ones.
Turkey, the favorite vacation spot of Russians, has lost the lion's share of the income received annually due to the multimillion-dollar flow of Russian tourists. Turkey also supplied the Russian Federation with a huge amount of food and consumer goods.
This was followed by the creation of a list of foreign persons contributing to the promotion of anti-Russian policies and sentiments. By analogy, similar restrictions apply to them, as is the case with the US and EU sanctions against the Russian Federation. In September 2016, one of the results of sanctions was the suspension of the fulfillment of obligations by the Russian side of the agreement with the United States on the disposal of weapons-grade plutonium.
Refusing to import from Europe, the Russian Federation made up for this shortcoming by expanding the sphere of trade with the regions of Southeast Asia, Latin and South America. It is noteworthy that the volume of imports of food products of the same Argentina and Brazil increased by half a year before the introduction of anti-Russian sanctions.
Another positive point - import substitution in the Russian Federation had a favorable effect on the rise of the domestic agricultural industry. Although the industry was developing quite dynamically before, inexpensive and high-quality products of foreign competitors deprived Russian farmers of a fair share of profit.
Against the background of the imposition of sanctions against Russia, the country has further strengthened relations with friendly trading partners of the East, in particular with China. Very many Asian states refused to impose sanctions against the Russian Federation, citing close cooperation in economic and political terms.
EU sanctions against the Russian Federation entailed extremely unfavorable economic consequences and many disagreements among the countries of the European Union. The damage to the economy is incommensurable with any positive aspects of this policy, which it is not at all possible to single out. In this regard, the states of Europe seriously thought about the problem that caused the initial imposition of restrictions by the United States against the Russian Federation.
In particular, states that were less dependent on the influence of the United States took an active position for lifting or limiting sanctions against Russia. For example, Cyprus, severely affected by the absence of Russian tourists, calls for a review of solutions for a speedy return to previous relations and the stabilization of its economy.
The Czech Republic, from the very beginning of the application of sanctions against the Russian Federation, was on the side of the United States in assessing what was happening in Ukraine, but later changed its position to the exact opposite. Many countries are calling for a constructive dialogue with the Russian government in order to find a joint way out of a new crisis looming in Europe.
A number of EU states directly affirm that hasty decisions were not justified by the real need for such measures, or their consequences simply turned out to be catastrophic. The expected onset of any positive changes does not occur.
Also, despite the US sanctions against the Russian Federation or bypassing them, foreign investment in previously launched projects in Russia does not stop. The vast majority of foreign companies associated with Russian enterprises partnerships continue mutually beneficial cooperation, despite the political differences between the governments of their countries.
Economic sanctions against Russia - an excursion into history
This is not the first time that the Russian Federation has been subjected to non-violent influence from the West in order to weaken the economy or create obstacles to its growth, undermine the state system or attempt to force a change in the foreign policy. The first economic sanctions against Russia were introduced back in 1925, during the Soviet era, when the USA and Europe refused to accept gold as payment, demanding oil, wood or grain. Russia at that time, after the revolution and the collapse of the economy, was in great need of imported equipment, technologies and a number of goods. And also the task was to stop being a raw materials appendage for the West.
In 1929, an embargo was imposed on the export of all goods except grain! Thus, Western countries tried in every possible way to impede the industrial growth of the then-young Soviet state. Naturally, the developed capitalist world could not come to terms with the advent of the communist system in one of the largest world powers. Sanctions against the USSR continued to be valid until 1934.
After the end of World War II, the States also sought to weaken the USSR by introducing a policy of preventing the export of technology to the country in order to artificially inhibit the industrialization of the USSR and to establish their superiority. As we know from history, the Cold War gave rise to unprecedented tension between the two world powers. America then saw in the person of the USSR an extremely strong rival. However, the containment policy did not ultimately bring any significant results. Although in technology, the Soviet Union, of course, was somewhat behind the progressive west.
A noteworthy event that accompanied the entry of Soviet troops into Afghanistan was a boycott of the Olympic Games then held in Moscow by the States. As a result, American athletes did not participate in them. The US attempts to persuade European countries to ignore the games only led to the refusal of the participation of some athletes. The countries of Europe offered to make decisions to their own Olympic committees and for the most part supported the games. In response, the USSR boycotted the following games in Los Angeles.
Will new sanctions be introduced against the Russian Federation?
Today’s measures against Russia are a repetition of methods already tested over decades. Until today, the question of who lost the most from the imposition of sanctions remains quite controversial. Perhaps the States did not initially rely on the result, but the fact of demonstrating their strength and determination, which they have been showing for over half a century in various regions of the planet, is important to them. In the case of the Russian Federation, military operations are extremely unprofitable and dangerous, therefore measures of “coercion” were chosen through various frauds.
Recent sanctions against the Russian Federation in connection with Crimea have become the most ambitious in terms of the number of countries involved. Here, the case is explained by the fact that the United States is actually imposing its will on many states of the world by capturing the global economy through the widespread introduction of its currency and, in general, using its influence. States, fearing to damage their economic stability, are forced to act under the dictation of the United States and take their side. Otherwise, they risk becoming political outcasts themselves.
Today, the following is obvious: EU sanctions against the Russian Federation, aimed at causing economic damage to the country, were unsuccessful. In isolation from the West, Russia has strengthened relations with the East. Also, the rejection of the share of export of goods, and in particular food, allowed Russia to reorient the economy toward domestic consumption and support agriculture and domestic production.
Sanctions against the Russian Federation will not lead to a change in its political course. This was declared by the head of the Russian state in response to the first restrictions. In addition, US policy is not supported by any real facts and evidence that could justify the legitimacy of the restrictions applied to Russia. As well as exerting pressure on other countries with the aim of joining forces in the global infringement of the geopolitical and economic interests of the Russian Federation.