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What are the sanctions on Russia and are they hurting its economy? What are the sanctions on Russia and are they hurting its economy?
(3 months later)
The US has introduced new sanctions against Russia, after President Putin signed treaties to annex regions of Ukraine. The UK government is stepping up sanctions on Russia, by banning diamond imports.
EU countries are also considering further sanctions, to limit Russia's ability to pay for war. It also said more than 60% of President Putin's war chest - about £275bn - has been "immobilised" .
What are sanctions?What are sanctions?
Sanctions are penalties imposed by one country on another, to stop them acting aggressively or breaking international law.Sanctions are penalties imposed by one country on another, to stop them acting aggressively or breaking international law.
They are among the toughest actions nations can take, short of going to war. They are among the toughest actions nations can take, short of going to war, and can be imposed at very short notice.
What are the latest US and EU measures? What are the diamond sanctions?
The US is imposing sanctions on 278 members of Russia's parliament, for enabling the referendums to annex four regions of Ukraine. It is also targeting 14 people connected with its defence industries. The UK is banning the import of diamonds from Russia. The US set out similar plans to ban Russian diamonds last year and the EU has announced plans to do so.
The US says it will also target organisations outside Russia which provide support for its military, or its annexation of Ukrainian territory. Russia earned more than £4bn in 2021 from diamond exports, the US says.
A new round of sanctions, drawn up by the European Commission, proposes a further ban on Russian imports. It would also ban more hi-tech goods from being exported. Russia earned £4bn a year from diamond exports
What sanctions have been imposed on Russia? However, most Russian diamonds are sent to countries like India to be polished, says Hans Merket of the International Peace Information Service think tank. Once they are re-exported, it is hard to tell that they originated in Russia.
As a result, "US sanctions have not been particularly effective", Mr Merket says. A solution could be "through laser inscriptions in diamonds, or through 3D scans", he says.
Gold exports, worth £12.6bn ($15.4bn) to Russia in 2021, were also banned by countries including the UK and US last year.
What other sanctions have been placed on Russia?
Financial measuresFinancial measures
Western nations are trying to limit Russia's access to money.Western nations are trying to limit Russia's access to money.
The US has barred Russia from making debt payments using foreign currency held in US banks. The European Union (EU), US, UK and Canada have frozen assets of Russia's central bank in their countries.
Major Russian banks have been removed from the international financial messaging system Swift. This has delayed payments to Russia for its oil and gas exports. Major Russian banks have been removed from the international financial messaging system Swift, delaying payments for Russian oil and gas.
The UK has excluded key Russian banks from the UK financial system, frozen the assets of all Russian banks, barred Russian firms from borrowing money and placed limits on deposits Russians can make at UK banks. The UK has frozen the assets of other Russian banks, and has banned Russian firms from borrowing money.
Russia's economy buckles up for a bumpy ride The EU has placed limits on the amount Russians can deposit at banks.
The UK government announced plans for a similar measure in February last year, but in May 2023 it said it would not implement it.
The UK government has said the financial sanctions imposed by Western nations have cut off $350bn (£275bn) of Russia's $604bn foreign currency reserves.
Oil and gasOil and gas
Western nations have announced these sanctions: Western nations have tried to cut Russia's income from oil and gas. Measures include:
The European Union (EU) will ban imports of Russian oil brought in by sea from December The EU stopped importing Russian coal and banned refined oil imports
The EU will ban all imports of refined oil products from Russia in February 2023 The US and UK banned all Russian oil and gas imports
The US is banning all Russian oil and gas imports Germany stopped the opening of the Nordstream 2 gas pipeline from Russia
The UK will phase out Russian oil by the end of 2022. It no longer imports Russian gas In December 2022, the EU and G7 set a maximum price of $60 a barrel for Russian crude oil.
Germany has frozen plans for the opening of the Nordstream 2 gas pipeline from Russia They warned importers that insurers will not underwrite oil shipments if they pay more.
The EU has stopped importing Russian coal The EU has not imposed sanctions on Russian gas because it relies on it for about 40% of its gas needs.
From December, the EU and G7 also want to cap the price countries pay for Russian oil.
They are telling importers of Russian crude oil that western insurers will not cover oil shipments if they pay more than the cap.
The EU has not imposed sanctions on Russian gas, because it relies on it for about 40% of its gas needs.
Can the world cope without Russian oil and gas?Can the world cope without Russian oil and gas?
Targeting individualsTargeting individuals
The US, EU, UK and other countries have sanctioned more than 1,000 Russian individuals and businesses - including so-called oligarchs. More than 1,000 Russian businesses and individuals have been targeted by the US, EU, UK and other countries.
These are wealthy business leaders who are thought to be close to the Kremlin, such as former Chelsea FC owner Roman Abramovich. They include oligarchs - wealthy business leaders who are thought to be close to the Kremlin - such as former Chelsea FC owner Roman Abramovich.
Roman Abramovich is the former owner of Chelsea FCRoman Abramovich is the former owner of Chelsea FC
Assets belonging to President Putin and Foreign Minister Sergei Lavrov have been frozen in the US, EU, UK and Canada. Assets belonging to President Putin and Foreign Minister Sergei Lavrov have been frozen.
Superyachts linked to sanctioned Russians have been seized. At least 16 superyachts linked to sanctioned Russians have been seized.
In New York, Russian aluminium magnate Oleg Deripaska has been charged with violating US sanctions.In New York, Russian aluminium magnate Oleg Deripaska has been charged with violating US sanctions.
The UK has stopped the sale of "golden visas", which allowed wealthy Russians to get British residency rights.The UK has stopped the sale of "golden visas", which allowed wealthy Russians to get British residency rights.
What other sanctions have been imposed on goods and services? No longer plain sailing in world of megayachts
Measures include: Russian shoppers and businesses hit
More than 1,000 international companies, including McDonald's, PepsiCo, H&M and Adidas, have stopped working in Russia,
Other measures include:
A ban on the export of dual-use goods - items with both a civilian and military purpose, such as vehicle parts - by the UK, EU and USA ban on the export of dual-use goods - items with both a civilian and military purpose, such as vehicle parts - by the UK, EU and US
A ban on all Russian flights from US, UK, EU and Canadian airspaceA ban on all Russian flights from US, UK, EU and Canadian airspace
An import ban on Russian gold
A ban on the export of luxury goods to RussiaA ban on the export of luxury goods to Russia
The UK has imposed a 35% tax on some imports, including vodka
Many international companies have either suspended trading in Russia, or withdrawn altogether.
Are sanctions hurting Russia?Are sanctions hurting Russia?
Russia's ability to fund the war has been helped by high oil and gas prices. Western leaders predicted Russia's economy would collapse. After the invasion of Ukraine and first sanctions, prices rose sharply and people took their money out of banks.
David Fyfe, chief economist at research organisation Argus Media, says its crude oil revenues rose 41% over the past year. But the International Monetary Fund believes Russia's economy could grow by 0.7% in 2023.
"Oil sales make up 40% of Russia's total exports, and so they are helping greatly to fund the war," he says. This is because Russia is exporting 8.3 million barrels of oil a day - the highest level since April 2020, according to the International Energy Agency (IEA). The biggest importers are India and China.
However, Mr Fyfe says sanctions are weakening Russia in other ways, "especially by blocking its access to the hi-tech components that its military sector needs". However, the IEA says that Russia's earnings from oil and gas exports fell to £6.5bn ($8.1bn) a month in April 2023, from £18.2bn ($22.5bn) because of Western sanctions.
How has Russia reacted?How has Russia reacted?
Russia has banned exports of more than 200 goods, including telecoms, medical, vehicle, agricultural, electrical equipment and timber products. Russia has banned exports of more than 200 goods from the West, including telecoms, medical, vehicle, agricultural, electrical equipment and timber products.
It is blocking interest payments to foreign holders of government bonds, and banning Russian firms from paying overseas shareholders.It is blocking interest payments to foreign holders of government bonds, and banning Russian firms from paying overseas shareholders.
And it has stopped foreign investors who hold billions of dollars worth of Russian investments from selling them. Foreign investors, who hold billions of dollars worth of Russian investments, are banned from selling them.
Correction 25 May 2023: A previous version of this piece incorrectly stated that the UK government had introduced a measure to limit the amount that Russians could keep in UK banks. The government announced on 24 February 2022 that it was doing this but subsequently decided not to.
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