As a measure to try to ensure some financial stability during Western sanctions against Moscow for its invasion of Ukraine, Russia’s central bank said on Sunday (27) that it will resume buying gold on the domestic market from Monday (28). The city is already paying a heavy financial price for its aggression.
Moscow’s MOEX stock index fell 1.5% on Tuesday after falling more than 10% on Monday, bringing losses so far this year to around 20%. Shares in Russian oil company Rosneft were the hardest hit on Tuesday, falling 7.5%. In total, more than $30 billion has been wiped out of the value of Russian stocks this week alone.
“We expect more short-term declines in the Russian stock market,” analysts at JPMorgan Chase wrote in a note to clients last Tuesday.
Since Russian President Vladimir Putin decided to invade Ukraine last Thursday (24), several countries have taken measures and sanctions as a form of retaliation against the Russian government. European Commission President Ursula von der Leyen said on Sunday that the European Union will close airspace to Russian planes and ban Russian state-owned Today and Sputnik from broadcasting Russian propaganda.
But this was not the first measure declared by Ursula. The day before, she that selected Russian banks were excluded from the global payments system, the Swift.
“We will hold Russia accountable and collectively ensure that this war is a strategic failure for Putin,” wrote the leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada and the United States.
US President Joe Biden also signed an executive order imposing financial sanctions on Ukraine’s breakaway regions on Monday. Any “new investment” made by an American citizen, regardless of which region of the world he is in, to areas recognized as independent by Putin was prohibited.
Therefore, no American will be able to make any approval, financing or facilitation of transactions for a foreign person who is in the two separatist regions.
Donetsk and Luhanks will also not be able to directly or indirectly import any goods, services or technology into the United States. Export, re-export, sale or supply is also prohibited.
Within the financial sanctions package, the US President also stated:
- Total blockade on two major Russian financial institutions: VEB and the Russian military bank;
- Restrictions against Russia’s sovereign debt by banning trading and cutting off Western funding;
- Sanctions on Russian elites and their families, who Biden said shared “the corrupt gains of Kremlin policies”
British Prime Minister Boris Johnson also announced sanctions against five Russian banks and three top executives in the country. The prime minister called on other Western nations to also impose blockades on Russian financial institutions.
“The UK is sanctioning the following banks: Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank, as well as three individuals,” Johnson told Parliament. They are Gennady Timchenko, Igor Rotenberg and Boris Rotenberg.
And Germany’s decision on Tuesday to stop certifying the Nord Stream 2 pipeline shows that Europe is willing to attack Russia’s massive energy industry, even if it means higher natural gas prices for EU consumers.
New Zealand and Taiwan announced on Friday that they would join economic sanctions against Russia.
The first country is banning the export of goods to Russian military and security forces in response to the invasion of Ukraine.
Prime Minister Jacinda Ardern announced that she would cut off trade with Russia and impose travel bans on Russian officials, while continuing to call for a return to diplomatic dialogue to resolve the crisis.
Taiwan did not specify which measures were being considered.
In a statement, the Foreign Ministry said it “strongly condemns” Russia’s decision to start a war against Ukraine, adding that it poses a serious threat to the rules-based international order.
Taiwan is a global leader in semiconductor production.
Prospects for the near future
Japan will impose a series of sanctions on Russian financial institutions, military organizations and individuals in response to the invasion of Ukraine, Prime Minister Fumio Kishida announced on Friday.
The range of measures includes freezing the assets of certain Russian individuals and financial institutions, as well as 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 told a news conference on Friday.
At the same time, Australia said on Friday that it would “start imposing new sanctions on oligarchs, whose economic weight is of strategic importance to Moscow and more than 300 members of the Russian Duma, its parliament.”
Speaking at a news conference, Prime Minister Scott Morrison added that Canberra “was also working overnight with the United States to align with its new sanctions on key Belarusian individuals and entities complicit in the attack, so we are extending those sanctions to the United States.” 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.
After months of military escalation and intemperance on the Ukrainian border, Russia attacked the Eastern European country. At dawn on Thursday (24), Russian forces began bombing various regions of the country.
What was seen in the following hours, however, was an attack on almost the entire Ukrainian territory, with explosions in several cities, including the capital Kiev.
At least 64 civilians have been killed since Russia invaded Ukraine, the UN said on Sunday.
The agency’s Office for the Coordination of Humanitarian Affairs reported “at least 240 civilian casualties, including at least 64 people killed” in the fighting that has erupted since Moscow launched the attack on Ukraine.
This attack on the former Soviet neighbor threatens to destabilize Europe and involve the United States. Russia has been tightening its military grip around Ukraine for the past year, amassing tens of thousands of troops, equipment and artillery at the country’s gates.
In recent weeks, diplomatic efforts to defuse tensions have been unsuccessful.
Source: CNN Brasil
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