Vladimir Putin’s regime has published a list of 43 ‘unfriendly countries’ that face economic sanctions in retaliation for imposing sanctions on Russia.
The list includes all EU and NATO members as well as several financial powerhouses such as Japan, Singapore, Australia and Switzerland.
Deals involving real estate purchases, financial trading and loans in roubles would now require ‘special authorization’ from the Kremlin if they included companies from the countries on the list, spelling chaos for business flowing in and out of Russia.
Russian state media portrayed the move as a strong reaction to the international flurry of sanctions inspired by its invasion of Ukraine, which has cut many Russians off international payment systems and nearly halved the value of its currency.
For the latest updates on the Russo-Ukraine War, visit our live blog: Russia-Ukraine Live
But it also revealed the Kremlin’s desperation to keep the Russian economy afloat as other retaliatory measures were quietly eased.
Putin’s government simultaneously announced measures that would enable Russian companies and citizens to pay off debts owed in foreign currency to foreign lenders from ‘hostile countries’ in roubles.
Russian banks have been ordered to offer special ruble accounts in which ruble payments can be made and converted into foreign currency at the central bank’s official exchange rate, which is then paid to creditors.
It comes as a major U-turn after the Kremlin previously banned all transfers to foreign investors.
Kremlin spokesman Dmitry Peskov insisted last week that the government had a strong safety net around its economy and claimed there was an ’emotional’ backlash in financial markets that would soon end.
But ordinary Russians are already feeling the pinch from rapidly rising prices of imported goods, with some staple foods more than double the price, and diminishing returns on their exports.
Some international retailers such as Ikea have independently decided to close their stores in Russia and Belarus, Putin’s only allies in the invasion.
An emergency 20% hike in interest rates has temporarily eased the currency’s decline, but signals a deeper recession in the coming months.
The vast majority of Russia’s €630 billion war gold and foreign currency are now effectively frozen, making it harder to keep an artificial floor under the ruble’s value.
Boris Johnson was in talks with Canadian Prime Minister Justin Trudeau and Dutch Prime Minister Mark Root in London on Monday as part of a broader preparation of further sanctions against Russia.
Later on Monday he will join a call with US President Joe Biden, French President Emmanuel Macron and German Chancellor Olaf Scholz.
European countries and the US are believed to be preparing to announce sanctions on Russian gas and oil-to-oil imports, a significant addition to existing sanctions.
The United States, Canada, 27 EU states, UK, Ukraine, Montenegro, Switzerland, Albania, Andorra, Iceland, Liechtenstein, Monaco, Norway, San Marino, North Macedonia, Japan, South Korea, Russia’s list of ‘unfriendly countries’ Korea is included. , Australia, Micronesia, New Zealand, Singapore and Taiwan (considered a territory of China, but since 1949 governed by their own administration).
Contact our news team by emailing us at [email protected]
For more such stories, Check Out Our News Page,
