The Group of Seven (G7) and NATO allies met in Brussels, Belgium, to discuss the war in Ukraine; the Biden government announced another wave of sanctions on Russia Thursday. Sanctioned-targeted is several state-owned companies and all 328 Russian lawmakers. A senior U.S. government official told Reuters that they attended the meeting to systematically remove the rights and benefits Moscow once enjoyed as a member of the international economic order.
US President Joe Biden vowed that the US and NATO would respond if Russia used chemical weapons in Ukraine, but its responses depend on the ground situation. Biden denied providing intelligence reports about the likely threat of Russia deploying a chemical weapon in Ukraine. pic.twitter.com/y3hBpJHIUD
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Mainly, the sanctions target seventeen board members of Sovcombank, a leading Russian financial institution, and forty-eight defense companies reportedly producing equipment for ongoing Russian aggression of Ukraine. Additionally, the sanction targeted the head of Sberbank, Herman Gref, and a wealthy friend of President Putin, Gennady Timchenko. The White House stated that as long as the Russian leader continues this war, the U.S. and its allies are committed to ensuring the Russian administration feels the compounding effects of current and future economic actions.
Sanctions also Targeted Russian Politicians and Business Elites
The U.S. and its partners now targeted all ten of Russian largest financial institutions through a combination of sanctions that choke off all transactions with United States entities along with correspondent sanctions that block transactions with American banks, and equity and debt sanctions on institutions holding approximately eighty percent of assets of Russian banks, according to the White House.
The full blocking sanctions target not only the Russian largest state-owned banks but also several politicians and business elites. In addition, the slap companies in virtually every primary sector of the economy, including minerals, mining, railways, and telecommunications. According to the International Monetary Fund (IMF), no nation as large as Russia, and its economy ranked 12th.
The Biden government, allies, and partners are also blocking Russian access to major components such as semiconductors, critical to its high-tech and emerging industries. Furthermore, the government is employing the latest export control that restricts the sale to Russia of avionics, computers, semiconductors, and other related products from anywhere globally if they are manufactured with United States technology, software, or tools.
Considerably, the European Union, the United Kingdom, Canada, Japan, and Australia adopted their previous export controls to be consistent with the new United States rule. The U.S. Treasury Department said that other companies on the new list include manufacturers of ammunition for the Russian army, civilians, military helicopters, including drones designed for surveillance but are now used in the invasion against Ukraine.
Sanctions and their Economic Consequences
The official said that the U.S. warned the Russian president that it would face severe and swift consequences if it attacked Ukraine, and they slapped on that threat. Further, it noted that the nation is facing economic pain and inflation that will push it out of the top twenty economies of the world. Moreover, according to the official, Russia will soon face a severe shortage of ideas, technology, and talent to compete in the 21st century, leaving the country with a strategic failure.
Earlier this week, Jake Sullivan, the United States national security adviser, said the U.S. would consult with allies about the Russian presence in the G20 group of global largest economies. However, the economic consequences and sanctions could make that debate easier by disqualifying Russia because of its shrinking economy.