CNN Business —
Countries around the world are imposing fresh sanctions against Russia over its invasion of Ukraine.
The United States, the European Union, the United Kingdom and Canada banned certain Russian banks from SWIFT on Saturday, the high security network that facilitates payments among 11,000 financial institutions in 200 countries. Earlier in the week, Germany halted certification of the Nord Stream 2 gas pipeline following Moscow’s actions.
The European Union, United States, United Kingdom, Japan, Switzerland, Australia and Taiwan all hit Moscow with new injunctions over the weekend, condemning the military incursion that unfolded over the past 24 hours.
Russia is already paying a price for its aggression. The country’s stocks and currency tanked last week after Putin’s ordered troops into eastern Ukraine. Russia’s stock market was closed Monday.
The Ruble hit record lows Monday, sliding as much as 30% against the dollar, while the Russian central bank more than doubled interest rates to 20%.
Putin is “indifferent” to Western sanctions against him, his spokesperson Dmitry Peskov said Monday, as he has no assets abroad.
“The sanctions contain rather absurd statements about some assets, etc… Everyone knows that President [Putin] doesn’t have any assets, in fact, except for those that are declared every year in the amount of a [car] trailer and an apartment, and some bank deposits,” he said.
Though Putin owns modest assets on paper, opposition members and investigative journalists allege he has a hidden fortune.
Here’s a look at the latest major sanctions.
The European Commission – along with the United States, United Kingdom and Canada – pledged Saturday to remove Russia from SWIFT, a global messaging service that connects financial systems, as part of stricter moves to remove Russia from the international finance system.
President of the European Commission Ursula von der Leyen on February 25, 2022 in Brussels, Belgium.
The Society for Worldwide Interbank Financial Telecommunication is used by over 11,000 financial institutions to send secure messages and payment orders – kicking Russia out of it is considered a “nuclear move.”
The countries also committed to imposing “restrictive measures” that would prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of sanctions. EU Commission President Ursula von der Leyen said the measures will paralyze Russia’s central bank assets and freeze its transactions, making it impossible to liquidate its assets.
“We will stop Putin from using his war chest,” von der Leyen said in a statement.
The statement said it will limit the sale of “golden passports,” which allow wealthy Russians to gain citizenship in another country in exchange for an investment. This move would clamp down on wealthy Russians with connections to the government becoming citizens of other countries and “gaining access to our financial systems.”
Von der Leyen and French president Emmanuel Macron announced other measures early Friday, vowing to inflict “maximum impact on the Russian economy and political elite.”
“We will hold the Kremlin accountable,” said von der Leyen.
The sanctions are aimed to hit Russia’s financial, energy and transport sectors, and include export controls and trade financing bans.
Even historically neutral Switzerland is adopting the EU’s sanctions against Russia, President Ignazio Cassis announced Monday. The country, which is a major center for wealthy Russian oligarchs, said it’s freezing the assets of certain individuals “with immediate effect.”
Swiss Federal President Ignazio Cassis speaks during a press conference in Bern, Switzerland, Monday, February 28.
The sanctions and asset freeze will apply to Putin, Prime Minister Mikhail Mishustin and Foreign Minister Sergey Lavrov.
Switzerland affirmed its commitment to neutrality and said it will examine further EU sanctions on a “case-by-case basis.”
“Russia’s unprecedented military attack on a sovereign European country was the deciding factor in the Federal Council’s decision to change its previous stance on sanctions,” a statement said.
France's Economy Minister Bruno Le Maire in Paris on February 28.
The French finance minister Bruno Le Maire said Monday that the country will go after luxury goods owned by Russians targeted by sanctions, following a defense council meeting called by French President Emmanuel Macron.
“We are pursuing the complete census of financial assets, real estate, yachts and luxury vehicles that would belong to Russian personalities under European sanctions,” Le Maire said.
Japan said Monday that it will impose more sanctions on Russia, aligning with the G-7. Specifically, Prime Minister Fumio Kishida said Japan will limit transactions with Russia’s central bank and that it would impose sanctions on Belarus, Reuters reported. Over the weekend, the country indicated it will deny certain Russian banks access to SWIFT and that it will freeze Putin’s assets.
Japanese Prime Minister Fumio Kishida spoke at a news conference on February 25 in Tokyo, Japan.
Kishida announced a range of measures last week, including freezing the assets of certain Russian individuals and financial institutions while also banning exports to Russian military organizations.
“In response to this situation, we will strengthen our sanction measures in close cooperation with the G7 and the rest of the international community,” Kishida said in a press conference on Friday.
Australia’s leader said Friday that it would “begin imposing further sanctions on oligarchs, whose economic weight is of strategic significance to Moscow and over 300 members of the Russian Duma, their parliament.”
Australian Prime Minister Scott Morrison speaks at a press conference in Sydney, Thursday, Feb. 24, 2022.
Speaking at a press conference on Friday, Prime Minister Scott Morrison added that Canberra was “also working with the United States to align with their further sanctions overnight on key Belarusian individuals and entities complicit in the aggression, so we are extending those sanctions to Belarus.”
The new round of measures came after Australia imposed travel bans and targeted financial sanctions on eight members of the Security Council of the Russian Federation on Thursday.
New Zealand is prohibiting the export of goods to the Russian military and security forces in response to the invasion of Ukraine.
Prime Minister Jacinda Ardern speaks on the Russian invasion of Ukraine on February 25, 2022 in Auckland, New Zealand.
Prime Minister Jacinda Ardern announced Friday that it would cut trade with Russia and impose travel bans against Russian officials as it continued to call for a return to diplomatic dialogue to resolve the crisis.
“Right here and now we need to take immediate action,” Ardern said in a press conference in Wellington.
“This is the blatant use of military might and violence that will take innocent lives and we must stand against it.”
Taiwan announced Friday that it would join the economic sanctions against Russia, without specifying which measures were being considered.
In a statement, the Ministry of Foreign Affairs said on Friday that it “strongly condemns” Russia’s decision to start a war against Ukraine, adding that it has posed a serious threat to the rules-based international order.
The decision to impose sanctions was made “to compel Russia to halt its military aggression against Ukraine, and to restart peaceful dialogue among all parties concerned as soon as possible,” the ministry added.
Taiwan is a global leader in the production of semiconductors.
The United States
US Secretary of State Anthony Blinken announced further actions against Russia on Monday, including barring Russian financial institutions – such as the Russian Central Bank – from making transactions in American dollars.
Secretary of State Antony Blinken at the State Department in Washington, DC, on February 22.
The US also imposed sanctions on the state-owned Russian Direct Investment Fund, calling it a “known slush fund” for Putin and his inner circle.
The aggressive moves were taken to prohibit Russia from accessing a “rainy day fund” that officials said Moscow had been expecting to rely upon during the invasion of Ukraine. Instead of using the reserves to buffer a plummeting ruble, Russia will no longer be able to access the funds it keeps in US dollars.
US President Joe Biden on Thursday unveiled another set of harsh measures against Russia, saying: “Putin chose this war.”
Those sanctions include export blocks on technology, a centerpiece of Biden’s approach that he said would severely limit Russia’s ability to advance its military and aerospace sector.
In a statement, the White House said “this includes Russia-wide restrictions on semiconductors, telecommunication, encryption security, lasers, sensors, navigation, avionics and maritime technologies.”
Washington also put sanctions on people it described as “corrupt billionaires” and their families who are close to the Kremlin.
It said it would cut off 13 major state-owned companies from raising money in the United States, including energy giant Gazprom and Sberbank, Russia’s largest financial institution.
The White House also vowed to sanction two dozen Belarusian individuals and companies, which include “two significant Belarusian state-owned banks, nine defense firms, and seven regime-connected officials and elites.”
The United Kingdom
The United Kingdom imposed fresh sanctions on Russian banks Monday and said it had a “hit list” of oligarchs to be sanctioned, according to Foreign Secretary Liz Truss.
The country will prevent Sberbank, Russia’s largest bank, from clearing payments in Sterling. And three more Russian banks – Otkritie, Sovcombank and VEB – will face a full asset freeze.
Truss said the UK will bring a full asset freeze on all Russian banks “in days” to Parliament on Monday.
The UK joined other Western countries over the weekend to ice Russian banks out of SWIFT.
The United Kingdom is also set to sanction 100 individuals and entities as part of further sanctions against Russia, British Prime Minister Boris Johnson said Thursday.
Prime Minister Boris Johnson on February 24 in London, England.
An asset freeze will be imposed on Russian state bank VTB, he added, following the sanctioning of five Russian banks on Tuesday. Russian state and private companies will also be prevented from fund raising in the United Kingdom.
The United Kingdom will ban Russia’s national airline, Aeroflot, and apply sanctions to Belarus “for its role in the assault on Ukraine,” the prime minister added.
Going forward, Britain is also hoping to bring in legislation this week to ban the export of certain technologies to Russia, particularly “in sectors including electronics, telecommunications, and aerospace,” according to Johnson.
“We will continue on a remorseless mission to squeeze Russia, from the global economy, piece by piece. Day by day, and week by week,” Johnson told lawmakers.
— Charles Riley, Kevin Liptak, Nathan Hodge, Julia Horowitz, Chris Liakos, Nikki Carvajal, Jeremy Diamond, Xiaofei Xu and Kevin Liptak contributed to this report.
What are the 4 types of sanctions? ›
- 1.1 Reasons for sanctioning.
- 1.2 Economic sanctions.
- 1.3 Diplomatic sanctions.
- 1.4 Military sanctions.
- 1.5 Sport sanctions.
- 1.6 Sanctions on the environment.
- 1.7 Sanctions on individuals.
Examples may include economic-commercial measures (the arms embargo), financial measures, or individual sanctions such as the prohibition of entry into a State or the freezing of assets.What are examples of economic sanctions? ›
Economic sanctions may include various forms of trade barriers, tariffs, and restrictions on financial transactions.What is sectoral sanctions list? ›
Sectoral Sanctions Identifications (SSI) List. The Sectoral Sanctions Identifications List includes persons determined by OFAC to be operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662.What are examples of US sanctions list? ›
- bans on arms-related exports,
- controls over dual-use technology exports,
- restrictions on economic assistance, and.
- financial restrictions such as: requiring the United States to oppose loans by the World Bank and other international financial institutions,
The Bureau of Industry and Security (BIS) implements U.S. Government certain sanctions against Cuba, Iran, North Korea, and Syria pursuant to the Export Administration Regulations (EAR), either unilaterally or to implement United Nations Security Council Resolutions.Does any country have sanctions on the US? ›
The European Union retaliated to the sanctions with a tariff on 180 U.S goods for over $3 billion on 22 June 2018. Mexico retaliated to the sanctions with a tariff on U.S goods such as steel, pork, cheese, apples and other goods for over $3 billion on 5 June 2018.Who imposes sanctions in the US? ›
The Office of Foreign Assets Control ("OFAC") of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities ...Where do US sanctions apply? ›
U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, all U.S. incorporated entities and their foreign branches.What are sanctions imposed by USA? ›
U.S. Department of the Treasury
OFAC administers a number of different sanctions programs. The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.
What are sanctions in business? ›
Financial sanctions include restrictions on designated persons, such as freezing their financial assets, as well as wider restrictions on investment and financial services. OFSI helps companies understand their financial sanctions obligations, monitors compliance and assesses suspected breaches.What are positive sanctions examples? ›
Positive sanctions can include celebration, congratulation, praise, social recognition, social promotion, and approval, as well as formal sanctions such as awards, bonuses, prizes, and titles.Who is on the Russian sanctions list? ›
|Russia||Sergey Lavrov||Minister of Foreign Affairs of Russia|
|Russia||Sergei Shoigu||Minister of Defence of Russia|
|Russia||Dmitry Medvedev||Deputy Chairman of the Security Council of Russia, former President and former Prime Minister of Russia|
|Belarus||Alexander Lukashenko||President of Belarus|
The U.S. export regulations restrict imports and exports to certain destinations without a U.S. Government authorization (called "license"). Embargoes sanctions (CRIMEA - REGION OF UKRAINE, CUBA, IRAN, NORTH KOREA, and SYRIA) prohibit ALL transactions (including imports and exports) without a license authorization.What are the types of sanctions imposed on Russia? ›
With the commencement of attacks on 24 February 2022, a large number of other countries began applying sanctions with the aim of devastating the Russian economy. The sanctions were wide-ranging, targeting individuals, banks, businesses, monetary exchanges, bank transfers, exports, and imports.What are the 3 categories of sanctions? ›
Types of sanctions measures
making a 'sanctioned supply' of 'export sanctioned goods' making a 'sanctioned import' of 'import sanctioned goods'
India has historically and largely not supported sanctions imposed by individual countries. The Government of India has largely supported United Nations sanctions. India has also been warned with sanctions, imposed with them, and has also imposed and threatened its own.What is the foreign sanctions evaders list? ›
This Foreign Sanctions Evaders List ("FSE List") includes persons sanctioned pursuant to E.O. 13608 for engaging in conduct relating to the evasion of U.S. economic and financial sanctions with respect to Iran or Syria, which are identified, respectively, with the program tags [FSE-IR] and [FSE-SY].Does the U.S. have sanctions on China? ›
In September 2022, the Office of Foreign Assets Control sanctioned Sinno Electronics of Shenzhen for supplying a Russian military procurement network. In January 2023, the U.S. Treasury Department sanctioned Spacety China, also known as Changsha Tianyi Space Science and Technology Research Institute Co.What are the U.S. countries of concern? ›
In November 2022, the U.S. Department of State designated Burma (Myanmar), China, Cuba, Eritrea, Iran, North Korea, Nicaragua, Pakistan, Russia, Saudi Arabia, Tajikistan, and Turkmenistan as Countries of Particular Concern and Algeria, the Central African Republic, Comoros, and Vietnam as countries on the Watch List.
Which countries have sanctions against Russia? ›
International sanctions have been imposed against Russia and Crimea during the Russo-Ukrainian War by a large number of countries, including the United States, Canada, the European Union, and international organisations following the Russian annexation of Crimea, which began in late February 2014.Is North Korea a sanctioned country? ›
Resolution 2094, passed in March 2013 after the third nuclear test, imposed sanctions on money transfers and aimed to shut North Korea out of the international financial system. Resolution 2270, passed in March 2016 after the fourth nuclear test, further strengthened existing sanctions.Is a sanction a law? ›
Sanctions, in law and legal definition, are penalties or other means of enforcement used to provide incentives for obedience with the law, or with rules and regulations. Criminal sanctions can take the form of serious punishment, such as corporal or capital punishment, incarceration, or severe fines.What can sanctions apply to? ›
Sanctions measures can include: • Restrictions on trade in goods and services • Restrictions on engaging in commercial activities • Targeted financial sanctions (including asset freezes) on designated persons and entities • Travel bans on certain persons.Who and what can be targeted by sanctions? ›
Targeted sanctions are intended to be directed at individuals, companies and organizations, or restrict trade with key commodities. The following instruments can be applied: Financial sanctions (freezing of funds and other financial assets, ban on transactions, investment restrictions)What is the importance of sanctions? ›
Sanctions are an important tool of the Council to help change the behaviour of regimes or individuals responsible for those conflicts, and to help us fulfil our collective responsibility to maintain international peace and security.Who enforces sanctions? ›
Office of Foreign Assets Control, Department of the Treasury – OFAC plays a primary role in administering and enforcing many U.S. sanctions programs.Who is the global head of sanctions? ›
Brian Grant - Managing Director, Global Head of Sanctions Compliance - MUFG | LinkedIn.What are the penalties for violating sanctions? ›
Penalties for breaching OFAC sanctions
OFAC treats violations as a serious threat to national security and foreign relations. As a result, criminal offenders face monetary fines—ranging from a few thousand dollars to several million—and prison time up to 30 years.
Some common synonyms of sanction are accredit, approve, certify, and endorse. While all these words mean "to have or express a favorable opinion of," sanction implies both approval and authorization.
How do you get a sanction lifted? ›
If you've been sanctioned, you can ask the Department for Work and Pensions (DWP) to rethink their decision to sanction you if you think they shouldn't have sanctioned you. This is called 'mandatory reconsideration'. If the DWP refuses to change their decision, you can then make an appeal.What are the 5 purposes of sanctions? ›
There are five main underlying justifications of criminal punishment considered briefly here: retribution; incapacitation; deterrence; rehabilitation and reparation.What does it mean to pay sanctions? ›
sanction. n. 1) a financial penalty imposed by a judge on a party or attorney for violation of a court rule, for receiving a special waiver of a rule, or as a fine for contempt of court.What are money sanctions? ›
Monetary sanctions include fines, fees, restitution, surcharges, interest, assessments, and other court costs imposed on people who are convicted of crimes ranging from traffic violations to violent felonies.What happens with a sanction? ›
A sanction is when your benefits are cut off. Sanctions can also be imposed for reasons that are not related to your work activity. HRA often calls sanctions “failure to report” (FTR) or “failure to comply” (FTC).What is an example of negative sanction? ›
Examples of negative sanctions include the following: refusing to export (embargoes), refusing to import (boycotts), covert refusals to trade (blacklists), purchases intended to keep goods out of the hands of target countries (preclusive buying), deprivation of ownership (expropriation), punitive taxation, aid ...What does negative sanction mean? ›
Definition of Negative Sanction
(noun) A punishment for breaking an established norm.
Even in a worst-case scenario, in which there is no piped Russian gas and low demand destruction, BNEF estimates Europe would still have enough gas to endure the coldest winter of the last 30 years without depleting its inventories.What is the US Russia sanctions legislation? ›
The Countering America's Adversaries Through Sanctions Act (CAATSA) is a United States federal law that imposed sanctions on Iran, North Korea, and Russia. The bill was passed by the Senate on July 27, 2017, 98–2, after it passed the House 419–3.How many directives are part of the Russian sanctions Program? ›
886 (codified in scattered sections of 22 U.S.C.)) (CAATSA). In addition, this rule incorporates four directives issued pursuant to E.O.
What country is number one in the freedom of doing business? ›
Read More About SingaporeSingapore's economic freedom score is 83.9, making its economy the world's freest in the 2023 Index. Its score is about the same as last year.
Business freedom - Country rankings
The average for 2022 based on 175 countries was 60 points. The highest value was in Norway: 91 points and the lowest value was in North Korea: 5 points. The indicator is available from 1995 to 2022.
Economic sanctions are used as a tool of foreign policy by many governments. Economic sanctions are usually imposed by a larger country upon a smaller country for one of two reasons: either the latter is a perceived threat to the security of the former nation or that country treats its citizens unfairly.What are the different types of sanctions quizlet? ›
- Types of Sanctions. Positive, negative. Formal, informal. Physical, Psychological.
- Positive. keep doing it.
- Negative. stop doing it.
- physical. can be touched, felt, seen.
- psychological. impacts emotions.
- formal. law/rule for society.
- informal. house rules (don't need to be done)
The UK government publishes the UK Sanctions List, which provides details of those designated under regulations made under the Sanctions Act. The list also details which sanctions measures apply to these persons or ships, and in the case of UK designations, provides a statement of reasons for the designation.What are the four sanctions used to punish criminals? ›
Incapacitation prevents crime by removing a defendant from society. Rehabilitation prevents crime by altering a defendant's behavior. Retribution prevents crime by giving victims or society a feeling of avengement. Restitution prevents crime by punishing the defendant financially.What three categories do sanctions fall into? ›
Sanctions measures can include: • Restrictions on trade in goods and services • Restrictions on engaging in commercial activities • Targeted financial sanctions (including asset freezes) on designated persons and entities • Travel bans on certain persons.What are the 5 types of intermediate sanctions? ›
The primary forms of intermediate sanctions include boot camps, halfway houses, intensive supervision programs (ISP), home confinement, electronic monitoring, and monetary penalties (fines and restitution). Each of these sanctions are designed to fulfill a specific purpose in penalizing an offender.What happens when a person is sanctioned? ›
Sanctions, in law and legal definition, are penalties or other means of enforcement used to provide incentives for obedience with the law, or with rules and regulations. Criminal sanctions can take the form of serious punishment, such as corporal or capital punishment, incarceration, or severe fines.What is the purpose of US sanctions? ›
The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.
What is the most common criminal sanction used in the United States? ›
First, fines are widely used as a criminal sanction and their use is not confined to traffic offenses and minor ordinance violations. Many American courts depend heavily on fines, alone or as the principal component of a sentence in which the fine is combined with another sanction.Which is the most common type of criminal sanction in the United States today? ›
Probation, the most frequently used criminal sanction, is a sentence that an offender serves in the community in lieu of incarceration.What are the 7 types of crimes? ›
- Antisocial behaviour. Antisocial behaviour is when you feel intimidated or distressed by a person's behaviour towards you.
- Arson. ...
- Burglary. ...
- Childhood abuse. ...
- Crime abroad. ...
- Cybercrime and online fraud. ...
- Domestic abuse. ...
- 3.1 The People's Republic of China.
- 3.2 Canada.
- 3.3 European Union.
- 3.4 Mexico.
- 3.5 Iran.
- 3.6 Russia.
U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, all U.S. incorporated entities and their foreign branches.What is the most common intermediate sanction? ›
The most common intermediate sanctions are intensive supervision, electronic monitoring, and boot camp. These options were first developed in the early to mid 1980s as a response to prison overcrowding.Do intermediate sanctions keep us safe? ›
Furthermore, the use of intermediate sanctions helps to protect the general public from an offender when close monitoring is used as the sanction. Finally, intermediate sanctions reduce the overcrowding of prisons.What is the oldest and largest intermediate sanction? ›
Probation is arguably the oldest ,and certainly the largest, of the intermediate sanctions.