The Western response to Russian measures in the Ukraine crisis is already a reality: a battery of sanctions coordinated between the European Union, UK and US to hit Putin. Throughout the day, these three parties have made public what will be the concrete actions that each country will implement to do the greatest possible damage to the Kremlin.
The United States has already stated that it will impose sanctions on the country’s sovereign debt and that held by the nation’s ‘elites’ and their families. These sanctions, which will be tougher than those proposed so far, imply that they will no longer be able to trade their debt with in the US markets. The United Kingdom and Europe have also joined this measure, closing the doors to the Old Continent market.
“That means we have cut off the russian government from western funding“, Biden said in remarks at the White House. “He can no longer raise money from the West and he can’t trade his new debt in our markets. or the European markets either”.
From the UK, they have frozen the assets of major Russian banks with immediate effect. In particular, sanctions will focus on tres bancos, VEB.RF, Bank Russia and Promsvyazbank. for funding military operations in separatist operations in eastern Ukraine. At the same time, the three parties will restrict the Russian government’s access to financial markets.
Regarding VEB, the United States has openly spoken of “total blocking sanctions“, although it is not known exactly what this measure will result in. In principle, it will not be known exactly how this measure will be executed until the sanctions are published by the Treasury Department.
Biden, for his part, signed last Sunday a total blockade of all investments in separatist territories and affirmed in his speech today that these measures “will continue to increase as the crisis continues to escalate.” The president of the United States defends that it is necessary to toughen these measures even more and describes what happened recently as “the beginning of the invasion of the country.”
Following his words, the price of oil has fallen, thus experts believe that this will be only a first step in a spiral of new sanctions, which will decisively affect the price of black gold and which, in principle, will hit the Russian economy hard, especially its exports and the country’s financial institutions. The door is even open to exclude their banks from the global financial data system.
Apart from the economic section, Biden responds to this “invasion” with movement in the Baltic countries, “strengthening his position”. Nonetheless, explains that it will not send new troops for the moment, but will be those already located in Europe. The president adds that “We have our next move prepared.”
Putin recognized the independence of the republics of eastern Ukraine, Lugansk and Donetsk, the two breakaway regions on the border with Russia. Immediately, he assumed the sovereignty of the two nations by sending troops to them, thus including the Donbas region in his area of influence.
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