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Current Affairs

US sanctions on individual Russians

Date: 01 February 2022 Tags: Miscellaneous

Issue

The US and its allies have threatened to impose more stringent sanctions on Russia, including individual citizens if Ukraine is invaded.

 

Background

Russia and the west are involved in a stand-off along the Ukraine border ever since Russia assembled a huge army.

 

Details

  • In the current circumstances, a complete embargo on Russia is unlikely but several industries and prominent individuals may be targeted.

  • The sanctions may have significant impact on asset and revenue of targeted individuals. They will not be able to invest in western assets.

  • The dependence on Russian gas, regional geopolitics and the size of the country has kept Russia from embargo similar to North Korea, Cuba and Iran.

 

Targeting individuals

  • Targeting individuals will prevent effects on common public or causing action that will boomerang back on Western interests.

  • The targeted individuals will mostly be Russian Oligarchs, who have connections with the Kremlin.  About 450 people have been zeroed in.

 

People under scrutiny

  • Russia’s interior minister, the directors of foreign intelligence and the federal penitentiary service, and the chairs of both houses of parliament.

  • The CEOs of state-owned oil and gas companies Rosneft and Gazprom, defense company Rostec and other state-owned corporations.

 

Previous sanctions

Placing limits on trade, blocking of assets under American jurisdiction and limits on access to the US financial system were some of sanctions imposed during Crimean annexation.

 

Effects on ties

  • There are demands for sanctioning Russian President Putin. Doing so would cause irreversible damage to ties between Russia and US.

  • The Nord Stream 2 gas pipeline would be under scrutiny in case invasion takes place. Russia could lose access to a large market such as west Europe.