Five years of sanctions against Russia. Main

In 2014, all residents of our country were stunned by the news - the European Union and the United States were introducing sanctions against the Russian Federation. The list of them is even too extensive. Well, the topic is detailed and important, and it is worth discussing it, starting with the events of spring 2014.

Prerequisites

Two years ago, in March, the Crimean peninsula returned to the Republic. The decision was made by the residents of the republic, because they voted in a referendum. And at that moment, representatives of other countries and states suddenly remembered Crimea and considered that this was an initiated Russian government destabilization of the situation in Ukraine. They also decided that this issue directly concerns them. Therefore, Europe and the United States began to actively impose sanctions against the Russian Federation. The list contains hundreds of items. By the way, the initiator of all this was the US government. The decision to impose bans was actively supported by other states. This was the plan to influence Russian policy and “return Crimea to Ukraine.”

Initially, the list of prohibitions was not as large as it became by 2015. The expansion of the list was due to the aggravation of the situation in the eastern part of Ukraine. For which, naturally, Russia also turned out to be to blame - as representatives of other states believed. However, now the situation is getting better. Many missions understand that it is unprofitable to be at enmity with the Russian Federation. And the bans are gradually being lifted. This needs to be discussed in more detail.

USA

This is the initiator who first introduced sanctions against the Russian Federation. The list began to be compiled even before the return of Crimea to Russia. For example, on March 4, 2014, military and investment cooperation between America and the Russian Federation was frozen. As well as bilateral negotiations on conference planning. The bank accounts of certain officials were also frozen. And they also imposed a ban on issuing visas.

Subsequently, the United States stopped cooperating with the Russian Federation in the fight against narcotic substances. And on 05/07/2014 the Russian Federation was completely excluded from trading program, which made it possible for countries with economies in transition to send certain goods to America for export. Since the summer of the same year, projects planned by the World Bank in Russia have ceased to be supported by the United States. Such large companies as Gazprom, Novatek, Lukoil, Rosneft and other well-known corporations were also subject to sanctions.

A very impressive list was drawn up against the Russian Federation. “Sberbank”, “VTB”, “Rosselkhozbank”, “Bank of Moscow”, “Vnesheconombank” - all these organizations were also banned. True, they are somewhat absurd, since the essence is that US citizens should not buy bonds from these banks.

Prohibitions that are difficult to understand

Naturally, the US government was not pleased that Russia practically did not react to all this. Moreover, everything, on the contrary, began to flourish. For example, the Kerch Bridge began to be built in Crimea. They began to lay lines across the strait that would help supply the peninsula with electricity. This project, by the way, has already been completed.

After this, the US government decided to impose new sanctions against the Russian Federation. And they touched Crimea. In particular, Kerch and the commercial ports of Feodosia, Kerch, Yalta, Yevpatoria and the hero city of Sevastopol.

True, it was not clear to many how exactly these bans should affect the residents of the country and the peninsula. It turned out that the US government does not like the fact that Greek and Italian-made ferries sail across the strait. But in reality, nothing happened - “Protoporos”, “Olympiad” and other ships continue to successfully transport vehicles and people.

EU: visa ban

US sanctions against the Russian Federation number in the dozens. It would take too long to list them all. The European Union has also compiled an equally impressive list. Crimeans, for example, were prohibited from issuing Schengen visas of any type. However, as practice shows, this ban was only for show. They still continue to put stamps on brand new Russian passports. Except that the process of obtaining a visa has become a little more complicated for residents of Crimea. And the embassies of the Netherlands, Italy, Greece and the Czech Republic have completely lifted the bans. They issue visas to Crimean residents without any problems. So the EU “visa” sanctions against the Russian Federation also turned out to be weightless.

When will sanctions against the Russian Federation be lifted? This is unknown. There are too many of them. Each state has introduced its own bans, and Russians don’t even know about the vast majority of them. For example, the US government banned flights of its civil aircraft in Simferopol airspace. True, before this there were no flights from the local airport to the USA, but this is not so important - the sanction was still included in the list.

However, in fairness, it should be noted that one significant ban still influenced many residents of our country. This is a US sanction imposed on the Visa and Master Card payment systems for those banks listed above. However, this problem We immediately began to decide. The creation of our own payment system began.

Another significant sanction is the suspension by the German government of the implementation of a military contract with the Russian Federation, the cost of which was 120 million euros.

By the way, Russia did not stand aside and introduced its own “anti-sanctions”, which came as a surprise to the EU and the USA. Of course, this whole situation with bans cannot pass without consequences for the economy. However, there was no catastrophe as such.

Other prohibitions

The European Union has banned many public figures, politicians and even actors from visiting their countries. Residents of these states are also not allowed to buy real estate in Crimea. The European Union also issued a decree that the supply of certain goods (the number of items of which is about 200) to the territory of the peninsula is prohibited.

Since sanctions should have some impact, the European Union, like the United States, expected a reaction. That Russia will agree to give Crimea to Ukraine, for example. This did not happen, so Europe could only extend the validity of all its bans. First - until 01/31/2016, then - until 06/23/2016. Since it was not possible to achieve any changes through the bans, on June 22 of this year their validity was extended until 06/23/17.

This is in terms of Crimea. Sanctions covering mainland Russia have been extended until 01/31/2017. It is unknown when sanctions against the Russian Federation will be lifted. Actually, it's not that important. After all, as you can see, they do not have much influence.

At the beginning of August 2017, US President Donald Trump signed the Countering America's Enemies through Sanctions Act, tightening the regime of restrictions against several countries, including Russia. This step finally removed the last illusions about the imminent lifting or easing of sanctions. It is now obvious that we will have to live with them for many more years.

Rules different countries regulating sanctions against Russia have become so numerous and complex that it has become difficult to understand them. This is what we will try to do now.

WHY WERE SANCTIONS IMPOSED ON RUSSIA?

The reason for imposing sanctions was not only the events in Ukraine and the annexation of Crimea. The first recent sanctions were introduced back in 2010–2012 as a result of the well-known corruption scandal. Previous disagreements with the West, including the 2008 war in Georgia, did not result in sanctions. IN chronological order the reasons for the sanctions were:

"Magnitsky case"

Let us recall that, according to some information, a number of government officials of the Russian Federation and private individuals created a conspiracy to steal large sums from the Russian budget. The scale of the alleged abuses and the death in prison of the US Heritage Foundation auditor Sergei Magnitsky caused widespread outcry, as a result of which the US, EU and several other countries adopted personal sanctions against the alleged perpetrators of the crime.

Currently, several dozen people are under sanctions, they are prohibited from entering these states, and all their property in the territory of these countries is blocked.

Sanctions in the Magnitsky case did not have much impact on the Russian economy. However, their political effect cannot be underestimated, since it was they who marked the final turn towards the irreversible deterioration of relations between Russia and the West and became a model for the introduction of subsequent, much more unpleasant sanctions.

For the war in Ukraine and the annexation of Crimea

In 2014, the US, EU and some other countries introduced a series of sanctions against Russia as punishment for the annexation of Crimea and participation in events in Ukraine. Personal sanctions were taken against certain individuals and organizations, “sectoral” sanctions against certain sectors of the Russian economy, as well as sanctions against Crimea.

For “cyber espionage” and interference in the US presidential election

At the end of 2016, just before leaving office, President Obama issued an executive order imposing sanctions for “malicious computer-based acts” against the United States, that is, for the alleged actions of Russian hackers during the US elections.

The list of those punished included the FSB, GRU and several other organizations. Several individuals were also subject to sanctions, for example, a certain hacker Belan nicknamed “Fedyunya”, Bogachev nicknamed “Monster”, as well as several GRU officials.

All of these individuals had their property blocked in the United States, and Americans were prohibited from any transactions with them. Obama also expelled a number of Russian diplomats from the country and took away two diplomatic dachas from the Russian embassy.

President Putin did not immediately impose retaliatory sanctions, apparently hoping for improved relations with the United States during Trump's presidency. However, when American sanctions against the Russian Federation were tightened in the summer of 2017, mirror measures were nevertheless taken belatedly - the American Embassy’s dacha in Serebryany Bor was taken away, and it was ordered to reduce staff.

For Syria

The United States has imposed extensive sanctions on the Syrian government over the ongoing civil war there. Several Russian entities were also subject to these sanctions, for example, Kirsan Ilyumzhinov, Tempbank, Tempbank employees, Russian Financial Alliance Bank (now defunct) and some others.

The Ukraine Support Act of 2014 also gave Obama the right to impose separate sanctions on the Russian Federation for the production and sale of defense products to Syria. However, the president did not use this right, since sanctions “for Ukraine” already covered a large number of people.

For everything together

Contrary to popular belief, the pretext for increasing sanctions under the recent US law passed in August 2017 was not only the alleged Russian interference in the US presidential election. The law refers to a very long list of Russian sins, including the annexation of Crimea, harm to Ukraine, support for the Syrian government, corruption, the fight against press freedom, interference in the internal affairs and elections of many countries around the world, and much more.

Since there was no reason to strengthen sanctions at this time, the prevailing opinion is that the adoption of this law was a purely domestic political American event, in which Russia was offered only the role of a whipping boy.

WHAT IS THE SPECIFIC CONTENT OF THE SANCTIONS?

Sanctions against the Russian Federation can be divided into several types according to their direct effect.

"Blocking sanctions" against individuals.

These are sanctions against individuals (legal and natural) who, for example, are involved in the “establishment state power in the Crimean region of Ukraine without the permission of the Ukrainian government, thereby undermining democratic processes and institutions in Ukraine.” Others were subject to personal sanctions for other reasons: the Magnitsky case, cyber espionage, etc.

The property of these persons in the United States and other countries participating in the sanctions is blocked, and any transactions with them are prohibited. Restrictions also apply to organizations owned more than 50% by these individuals. Individuals are prohibited from entering the territory of these countries. The Americans are not even allowed to provide them with assistance of a purely humanitarian nature - to provide food, clothing, medicine.

The specific list of “blocked” persons is compiled by the US Treasury (Department of the Treasury) in consultation with the Department of State (Department of Foreign Affairs). Currently, there are about 300 names on such lists for various reasons.

Now current list individuals is very diverse, it includes a variety of people from Strelkov-Girkin and motorcyclist Zaldostanov to Kobzon and Ramzan Kadyrov. Prominent economic figures, such as the Rotenberg brothers, Kovalchuk brothers, Timchenko, etc., along with their subsidiaries, also ended up there. I.I. is also on the list. Sechin, but only in a personal capacity. Since Rosneft does not legally belong to him by more than 50%, the oil company is not subject to this particular type of sanctions.

The list also included many legal entities, primarily defense industry enterprises such as Uralvagonzavod and Almaz-Antey.

Sanctions against Crimea.

Any transactions “in relation to” Crimea are prohibited. Investments in enterprises located on the peninsula, purchase and sale of any goods, services, technologies and property in this territory are prohibited. The sanctions also specifically targeted about 50 Crimean enterprises (including, for example, the Yalta Film Studio), with which it is prohibited to conduct any transactions.

However, the US government did make some concessions - it issued exceptions, the so-called “general licenses”. Any person is allowed to sell agricultural products, some medicines, spare parts there, provide for use of some programs (for example, websites social networks), provision of certain telecommunications services. Private bank transfers to Crimea are permitted. True, in practice this is not feasible, since none of the banks operating in Crimea are connected to the SWIFT system, and do not have correspondent accounts in foreign banks.

Sectoral sanctions

This type of sanctions by the United States and its allies affects the most important sectors of the Russian economy - banking and energy, limiting the ability to invest in them and supply certain technologies and equipment. The August 2017 law also gave the US government the right to extend sanctions to the railway, mining and metallurgical sectors of the Russian economy. The essence of these sanctions is as follows:

Restrictions on transactions in shares and debt obligations.

It is prohibited to carry out transactions with shares of a number of specific largest companies in the energy and financial sectors of Russia, as well as with their debt obligations issued for more than a certain period.

“Debt transactions” include not only the purchase of bonds, but also simply the provision of loans.

These companies were divided into three groups:

• Prohibition on transactions with newly issued shares and debts for longer than 14 days (until August 2017 – 30 days). This list includes the largest banks and financial companies of the Russian Federation (as well as their subsidiaries), including Sberbank, VTB, VEB, Rosagrobank, Gazprombank, Yandex.Money.
• A ban on transactions with newly issued debts over 60 days (previously - 90 days). The ban affects some of Russia's largest energy companies - Rosneft, Gazpromneft, Transneft and Novatek.
• Prohibition on transactions with new debts over 30 days. This group consists mainly of companies from the defense and high-tech sectors.

All other transactions with companies from these lists are permitted.

Restrictions on technology transfer to Russian energy companies.

Several executive authorities in the United States are involved in detailed regulation of this type of restrictions.

The US Treasury has issued a directive prohibiting Americans from selling equipment, providing services, or transferring technology that would be used for exploration and production of oil in deep water (more than 500 feet, that is, about 150 meters), shelf arctic(located inside the Arctic Circle) and shale deposits in Russia and adjacent maritime territories by the largest Russian companies.

We are talking only about oil production, since Russia’s European partners persuaded the United States not to touch gas. The provision of financial services - for example, lending and insurance - is not prohibited.

The list of companies that are prohibited from transferring such equipment is broader than the list that imposes a restriction on lending beyond 60 days. This includes Gazprom, Rosneft, LUKOIL, Surgutneftegaz and other oil companies, but does not include, for example, the pure gas Novatek.

At first, the ban on the transfer of equipment and technology applied not only to these organizations, but also to companies in which they had more than 50% participation. But in August 2017, this restriction was tightened and now we are talking not only about the “subsidiaries” of Russian companies, but also about companies and projects in which they have more than 33% participation. In addition, if previously we were talking only about projects in Russia (and adjacent to it), now sanctions apply to operations throughout the world.

Another department, the US Department of Commerce, is responsible for issuing licenses for the export of products that are subject to restrictions, including due to imposed sanctions.

Obtaining an export license is required for the transfer of a number of technologies and equipment that may be used, directly or indirectly, for the exploration or production of oil or gas in deepwater (below 500 feet), Arctic offshore or shale fields in Russia, and in cases where it is not possible determine exactly whether the equipment will be used in such fields.

Thus, we're talking about not only about oil production, but also about gas. Licenses are required to supply equipment and technologies to any company in Russia, not just those on the sanctions list.

When applying for an export license, use presumption of refusal in cases where the equipment can be used in the mentioned fields for oil production.

Specific restricted equipment includes (but is not limited to): drilling rigs, horizontal drilling equipment, drilling and completion equipment, subsea technological equipment, marine equipment that can be used in the Arctic, engines and equipment for wells and cables, drill pipes and casing, software for hydraulic fracturing, high pressure pumps, seismic equipment, remote controlled devices, compressors, expanders, valves, risers.

US Export Control is attempting to extend its regulations beyond the US. Thus, the specified restrictions should include the transfer to Russia of equipment that contains at least a 25% share of American products, from any country and by any person.

By the way, restrictions on the export of equipment to Russia that could be used for military purposes, namely the requirement to obtain an export license, existed before the Crimean crisis, so no separate sanctions were adopted regarding this type of product.

WHAT NEW PROVISIONS WERE INCLUDED IN THE RECENTLY PASSED AMERICAN LAW?

The new US law, which Trump so reluctantly signed, includes several important provisions affecting the interests of the Russian Federation.

Firstly, the procedure for reviewing sanctions has changed significantly.

Previously, Congress passed only a “framework law” that gave the president the power to independently impose and lift sanctions. Specific restrictions and lists of affected persons were adopted routinely by presidential decrees and acts of certain ministries. This is how Obama adopted sanctions. Now congressmen have incorporated into the new act all the sanctions imposed by Obama's decrees, thus giving them the force of law.

The new law also stipulates that the removal of existing sanctions, changes to the list of affected persons, and the granting of critical exceptions (so-called “licenses”) must be considered in both houses of Congress. If Congress does not agree with the lifting or modification of sanctions, it will make an appropriate decision about this - in the form of a law. This makeshift legislation can be vetoed by the President, but in theory this veto can be overridden by Congress, as usual, with a two-thirds majority.

These new rules greatly limit the rights of the president and significantly delay the prospect of lifting sanctions.

Thus, in order to remove any repentant Zaldostanov from the list of persons under sanctions now, this decision will have to be considered in the form of a bill in Congress committees, passed through both chambers, and, if necessary, vetoed. Given the hostility of Congress, the only hope for the informal motorcyclist will be that Congress will not have time to override the veto within a certain maximum period.

Trump did not want to sign this law, but was forced to do so, because he understood that his veto would be easily overcome - both Democrats and Republicans unanimously voted for the bill, with only a few votes against.

Secondly, the new law tightened the regime of already existing sectoral sanctions against the Russian Federation. As we have already mentioned, the maximum period of permitted debt obligations has been reduced. The new deadlines were 14 days for banks under sanctions (previously 30 days) and 60 days for energy companies (previously 60 days).

In addition, as already indicated, the law tightens restrictions on Russian deepwater, offshore Arctic and shale oil projects, setting a maximum threshold of 33% participation of Russian organizations in projects to which Americans can sell equipment and technology.

Third, by law, Congress gives the president the right—and in some cases the obligation—to impose various new sanctions against certain individuals.

Thus, the President may impose sanctions, in coordination with United States allies, on any person who sells or engages in more than $1 million worth of equipment, technology, and services related to the construction, modernization, or support of Russian energy export pipelines. investments.

It was this point that aroused the indignation of Europeans, who saw here, not without reason, an attempt to ban the construction of new pipelines from Russia. In order to reassure them, the Americans inserted language about “coordination with allies” into the final law.

This provision is actually extraterritorial - restrictions are imposed not only on American persons, but in general on any individual or legal entity in the world.

But the key word here is “may.” It seems unlikely that, under current conditions, the US President would impose sanctions on Europeans, for example, for participating in Nord Stream 2. However, selective application of such sanctions is likely.

According to the same law, the US President is obliged to impose sanctions on:

• those who knowingly engage in “activities that undermine cybersecurity against any person, including a democratic institution or government, on behalf of the government Russian Federation»;
• responsible for "ordering, supervising, or otherwise directing the commission of serious human rights violations in any territory forcibly occupied or otherwise controlled by the Government of the Russian Federation."
• any persons who carry out “significant transactions” with persons who are part of, or acting on behalf of and in the interests of, “the defense or intelligence sectors of the Government of the Russian Federation,” including the GRU of the General Staff and the FSB. To prevent Trump from evading this provision, he was ordered to issue rules within 60 days on how to identify such individuals.

This is one of the strangest points of the entire law. Theoretically, any buyers of Russian weapons on the international stage could be subject to sanctions.

• any person who makes an investment in excess of $10 million (or assists in making that investment) if that investment results in the Russian Federation being able to privatize state property in a manner that would unfairly enrich any Russian officials or their friends and relatives.
• foreign individuals who contributed to the acquisition of various types of weapons by the Syrian government.

All these sanctions may be subject to any individual and legal entity in the world, no matter where they live, and no matter what citizenship and jurisdiction they have.

It is difficult to say how aggressively President Trump will impose these sanctions. In the “signing statement,” a note accompanying the signing of the law, he stated that he did not agree with many of the provisions of the law (including some of these points), but would sign it in the interests of “the unity of the nation.”

There have been cases in US history when presidents signed legislation with some minor part of which they disagreed, which they indicated in their “signing statement.” This statement was then used to try to avoid implementation of these contradictory provisions of the signed law.

Fourthly, the law contains a declaration of support for the energy industry of Ukraine, including a statement that it is US policy to “continue to oppose the Nord Stream 2 pipeline, given its destructive impact on the energy security of Europe, the development of the gas market in Central and Eastern Europe and energy reforms in Ukraine.”

The law also cynically states that "the United States government must prioritize the export of the energy resources of the United States in order to create American jobs, assist the allies and partners of the United States, and strengthen the foreign policy of the United States."

This latest declaration caused a lot of criticism from Europeans, who saw in this entire law only the desire of the United States to strengthen its position in the European energy market.

It is possible, however, that this legal useless provision in itself was introduced only to jab Trump in a Jesuitical way - if he had not signed the law, he would have been reproached for being against creating jobs in America, which was one of the main points of his election program.

WHICH COUNTRIES ARE PARTICIPATING IN THE SANCTIONS REGIME?

The sanctions regime was adopted by almost all countries that can be conventionally called the “white world”. These are the USA and Canada, all countries of geographical Europe, with the exception of Serbia, Bosnia, Macedonia and, of course, Belarus. In addition, laws on sanctions against the Russian Federation were adopted by Japan, Georgia, Australia, New Zealand and some small Caribbean states.

The EU sanctions are almost identical to the US sanctions in force before the August 2017 law. Only the specific list of persons under sanctions is somewhat different. However, the Europeans' participation in the latest round of sanctions is still in question. Judging by the protests coming from EU representatives, it is unlikely that this bloc will automatically join the new restrictions, at least certainly not all of them.

And yet, despite the fact that the latest sanctions adopted by the Americans were received ambiguously, it is unlikely that the “sanctions coalition” will collapse in the near future.

WHO MUST COMPLY WITH THESE SANCTIONS? SHOULD COUNTRIES NOT PARTICIPATING IN THE SANCTIONS REGIME COMPLY WITH IT?

American law establishes that the restriction regime applies to transactions of “US persons and in the United States.” “U.S. persons” are U.S. citizens, permanent residents, U.S. companies (including branches of foreign companies), and all persons located in its territory.

From a formal point of view, this formulation does not imply an attempt to extend American regulation extraterritorially. All persons subject to sanctions are the object, and not the subject, of American law. Americans, in theory, can simply include foreigners who violate sanctions on the sanctions list, but cannot punish them specifically for violating the sanctions regime.

The difference here is big - if you get on the sanctions list, you simply lose the opportunity to travel to America and do business with Americans; If they admit that you are violating the sanctions regime, then you can be subject to criminal punishment in the United States and go to prison for 20 years.

However, recently a certain purely legally extraterritorial element has also appeared in the practice of law enforcement of sanctions. Any non-cash payments in US dollars between persons, even those not located in the United States, are considered transactions also carried out in the United States, since money transfers usually pass through correspondent accounts of American banks.

Thus, a Chinese, and even a Russian, who paid something, or received something in non-cash dollars from a company under sanctions, could also theoretically be considered a sanctions violator - and be detained somewhere in Thailand and sent to America to go to prison there for 20 years.

EU legislation, on the contrary, very clearly defines the persons who must comply with sanctions against the Russian Federation, namely:

• citizens of EU member states,
• organizations established under the laws of EU member states,
• organizations operating wholly or partly in the EU,
• any person located in the EU,
• any persons on the territory of any overflight aircraft or vessel under the jurisdiction of EU Member States.

WHY ARE RUSSIA'S PARTNERS SO AFRAID OF VIOLATING THESE SANCTIONS? CAN THESE SANCTIONS BE BYPASSED?

Companies operating internationally are very afraid of punishment for violating sanctions, especially from the United States. If they conduct any activity in the United States, the Americans may consider them subject to their laws and, accordingly, punish them for this violation.

As we have already indicated, even if a company has never carried out any business in the United States, and not a single employee has ever set foot there, if it uses American dollars in its calculations, it can be recognized that it is also operating in the United States , and therefore, is obliged to comply with the sanctions regime.

In 2015, US authorities fined the largest French bank BNP-Paribas a staggering $9 billion (not a typo, just billions) for allegedly violating US sanctions on Iran. Although France does not participate in the Iran sanctions regime and the bank's Iranian operations were not located in the United States, the basis for the fine was that the bank settled these transactions through dollar correspondent accounts located in the United States.

Despite the protests of the French government, the fine was imposed, and BNP-Paribas paid it, since the alternative would have been a ban on the bank using dollars in payments, that is, the actual closure of the bank.

Frankly speaking, lately the US government has actually been behaving somewhat like a gangster, and it is taking money not only from foreign corporations, but also from native American companies - for example, $13 billion was taken from the J.P. Morgan bank in the form of Bank of America fined $17 billion for alleged violations in mortgage lending.

In the United States, not only the president can impose fines, but also very numerous agencies and departments, federal and state, whose leaders thus - “by punishing evil corporations” - increase their political capital. Recently, there has been an unprecedented strengthening of the role of the state in the United States, despite the fact that all legal institutions, decentralization and the number of scoundrels in power remain unchanged there since Marktven’s times, when the role of the state was very weak and it could not harm anyone much.

Against this background, it would be the simplest and most honorable thing to fine a company like Siemens several billion dollars under the authority of some New York state comptroller for violating the sanctions regime. It is not surprising that international companies are afraid of somehow causing irritation or the attention of American “competent authorities.”

As we have already said, in addition to fines, there is also a very severe criminal punishment for violation of the sanctions regime for an individual (including officials corporations). This includes a fine of up to $1 million and up to 20 years in prison.

Given all this, it is not surprising that foreign corporations try to avoid violating the sanctions regime and not getting involved in sanctions evasion schemes.

WHAT IMPACT DO THE SANCTIONS HAVE ON THE RUSSIAN ECONOMY, INCLUDING THE OIL AND GAS SECTOR?

There is no doubt that the Russian economy has experienced significant difficulties in recent years. However, it is difficult to determine how large the contribution of international sanctions is to this.

In general, the press and economists are of the opinion that the main reason for the difficulties in the Russian economy was not international sanctions, but the fall in oil prices. In 2016, for example, oil and gas exports from Russia amounted to $151 billion, up from $349 billion in 2013.

In addition, there are structural problems of the Russian economy: excessive statization, ineffective government institutions and regulation, corruption, which caused the slowdown in economic growth in Russia even before the Crimean crisis.

Still, the impact of sanctions on the Russian economy cannot be underestimated.

The most serious damage is caused by restrictions on lending to large Russian banks and companies from abroad. The first blow was the need to repay large loans to foreign creditors without the opportunity to refinance. In total, in 2014-2016, the difference between repaid and attracted loans from Russian companies amounted to about $170 billion. Although the Russians, in general, have so far managed to extricate themselves, such a monetary failure became one of the reasons for the devaluation of the ruble.

The long-term consequences of restricting foreign lending are even more serious. Most large investments, including in the real sector of the economy, for example, the opening of new industries, are carried out through bank loans, including syndicated ones, with participants from many countries. Inside the Russian Federation there is now little capital for investment (in 2016, the assets of the banking system decreased for the first time in the history of the Russian Federation), Europe, the USA and Japan, that is, 95% of the global financial market, are closed to Russian borrowers, and the Chinese are not yet eager to invest much in Russia.

Since only the largest banks were sanctioned - such as Sberbank, VTB, it is theoretically possible that Western financing will go through other banks that are not sanctioned. However, it is unlikely that this will become a powerful source of investment, not least because the Russian banking system is now increasingly consolidated.

There is a high probability that without the resumption of lending from abroad, the resumption of high rates of economic growth in Russia will be difficult.

The energy industry was also directly affected. The sanctions had a particularly unpleasant impact on heavily indebted companies such as Rosneft. There were rumors that it was Rosneft’s actions that caused the collapse of the ruble exchange rate, since the company was forced to buy dollars on the open market in huge quantities due to the inability to borrow money in dollars.

As for restrictions on the supply of equipment, they affect a rather narrow area: deep-sea drilling, production on the Arctic shelf and shale oil. Therefore, on a macroeconomic scale, the impact of this ban is not very strong. However, for individual companies these sanctions, and especially those adopted in August 2017, are quite painful, as they limit their ability to develop some new projects.

Sanctions also have a negative psychological and moral impact. The situation when the country is under sanctions scares off most investors. If foreign companies already operating in Russia can still decide to develop and invest new money, then companies that have never operated in Russia are unlikely to open their enterprises and invest money in the country.

Sometimes the opinion is expressed that sanctions are an incentive for the development of their own industry. But this statement is more than controversial.

A certain “import substitution” is actually happening now. But it makes no sense to be overly happy and praise the sanctions for this.

Firstly, such import substitution has its own main reason a sharp devaluation of the ruble, as a result of which the import of various types of products from abroad, including equipment, greatly decreased. Although the ban on long-term lending to large Russian companies was also one of the reasons for the devaluation, most likely the ruble exchange rate would have dropped significantly even without these measures, but simply as a result of the collapse in oil prices.

Secondly, even if the sanctions somehow caused, through devaluation, a decrease in imports and some increase in demand for domestic products, the price of this improvement is very high - the possibility of lending is closed for enterprises. Due to the instability of the ruble, lending interest rates are very high. Until now, enterprises receive loans at 15-20% per annum, and this despite the fact that the official inflation rate is, according to the latest data, about 4%. This rate almost certainly exceeds the average rate of return throughout the engineering industry. Where it makes sense to lend in dollars, for example in oil and gas production, lending from abroad is in many cases closed, as a result of which a significant number of large projects cannot start.

And thirdly, all import substitution occurs, as it is sad to admit, at a very low technological level.

In fact, many oil companies are now refusing the expensive services of companies such as Schlumberger or Halliburton, and are again starting to call “Uncle Vasya” to solve their problems. But truly high-tech industries are developing extremely slowly due to serious structural problems in the Russian Federation.

In addition to the problems already mentioned (ineffective state, corruption, etc.), it is necessary to mention the very difficult issue of lack of technical personnel. Old engineering personnel are leaving, young ones are not being trained in the required quantity and quality. The system of secondary technical education has completely collapsed.

In such conditions, the task of building mass competitive high-tech production in Russia is extremely difficult.

WHEN WILL THE SANCTIONS BE REMOVED?

The lifting or easing of sanctions is currently extremely unlikely due to the international political situation, internal political struggles in the United States and the legal complexity of this process.

As for EU sanctions, legally removing them is quite simple. Unlike the US, where sanctions are regulated by a whole bunch of documents, EU sanctions were adopted in one document. European sanctions were first adopted in July 2014 for a period of six months, then they were repeatedly extended every 6 months - in last time June 28, 2017.

To extend sanctions, all EU member states must vote unanimously each time. The specific list of persons subject to sanctions is routinely supplemented by the EU executive bodies.

Thus, it is enough for at least one country to vote against it, and the sanctions will not be extended and will cease. It is unlikely that any country would do this against everyone else. However, if the main EU members decide to end sanctions, no country from the “belt of sufferers” such as Poland or Lithuania will be able to prevent this. In this case, the principle of unanimity in the EU works to Russia's advantage.

Formally, EU sanctions are being extended due to Russia’s failure to comply with the Minsk agreements. Let us recall that the Minsk agreements of February 15, 2015 (Minsk-2), adopted during a meeting of the leaders of Russia, Ukraine, France and Germany, are now not being implemented by either Russia or Ukraine. Agreements include such difficult-to-implement given time provisions such as the transfer to the Ukrainian government of control over the state border between the Russian Federation and Ukraine in the Donbass region. These agreements impose an obligation on Ukraine, among other things, to change the constitution and grant special status to parts of the Donetsk and Lugansk regions, which the Ukrainians are also in no hurry to do.

It is difficult to say whether the theoretical implementation of these agreements by Russia will entail the lifting of sanctions by the EU. The act on sanctions itself states that they are imposed, among other things, due to Russia’s annexation of Crimea. So, Russia’s fulfillment of its part of the Minsk agreements does not guarantee the lifting of EU sanctions. However, a hypothetical end to the “annexation” of Crimea cannot guarantee anything either.

However, the lifting of European sanctions without lifting American sanctions, which have a certain extraterritoriality, will not greatly improve the situation of the Russian Federation. American sanctions will be much more difficult to lift.

Firstly, at present there are no prerequisites for improving relations between the Russian Federation and the United States. Trade between the Russian Federation and the United States has always been at a fairly low level, and the Americans are not particularly interested in improving relations with the Russian Federation. It is much more profitable to continue to use it as a bogeyman for the sake of “national unity.”

Secondly, lifting sanctions will require the adoption of appropriate legislation, which will have to pass through both houses of Congress. Considering the constant squabbles, intrigues and internal party struggle in this body, it will be difficult to achieve this.

Thirdly, as long as the international situation remains tense and the Ukrainian and Crimean issues are unresolved from an international legal point of view, there is no pretext for lifting sanctions. A legal solution to this issue may not occur during the lifetime of most readers of this article. Let us remember that, for example, the problem of Northern Cyprus has not been resolved since 1974, and is unlikely to be resolved in the near future.

Sanctions can be lifted soon only if there is a radical change in the international political situation, for example, if some common strong enemy emerges. Unless such an unlikely event occurs, it could be decades before sanctions are lifted.

Ruslan Khaliullin

What sanctions were imposed against the Russian Federation in connection with the events in Crimea? What consequences did they have? How likely is it that all restrictions will be lifted soon and to what extent? the real reason their application in relation to Russia?

The events in Crimea in the spring of 2014, associated with its secession from Ukraine and annexation to the Russian Federation, caused a great resonance in the world political arena. Many powers found Russia’s actions to be a threat to the existing order and took the exact opposite position, aimed at containing and preventing such precedents. Even despite the previous conflict and civil war in Ukraine, as a result of which the Republic of Crimea was to some extent forced to secede in order to maintain its political and economic stability, becoming part of Russia.

Although the question of the historical identity of the Crimean Peninsula remains quite controversial, most Western states see Russia’s actions as actually a crime. Sanctions against the Russian Federation were aimed at forcing the state to change its decision regarding the disputed territory. We will look at the impact they had on the domestic economy and the political situation around the world in the next article.

First, let's define the terms and their meaning. It is known that, in a general sense, sanctions are certain restrictive measures in the form of punishment for any offenses or actions. Their goal is to create unfavorable conditions for the application object and force it to change the selected course. Also, the very fact of imposing sanctions shows the extreme disagreement of the world community with any political decisions of its individual members and is aimed at forcing the state to change its chosen political course peacefully.

World practice provides for the following restrictive measures against states:

• economic sanctions;

Economic measures imply a weakening of the economic situation related to foreign trade. For example, a state may impose a ban on the export of its goods to a country on which a restriction has been imposed. The ban also applies in the opposite sense - the import of products of the same production is stopped.

Since for many states international relations are based on trade, suppliers lose their sales market, and consumers cannot purchase a number of goods because their import has been stopped. We have to look for new channels, which is associated with certain inconveniences and additional costs.

Political measures influence directly the participants who have weight and authority in the international political arena. These may be prominent statesmen, heads of large companies and international holdings, or simply authoritative people whose words are listened to all over the world.

As a result, as a result of the introduction of sanctions of political and economic impact, it is assumed that the state - the object of the imposed restrictions will be to some extent isolated from the rest of the world. How global the impact on the situation within the country itself will be depends on the future of the economy and the general standard of living of citizens. How quickly and effectively the government can reorient the economy from the export and import of goods to domestic consumption, the imposition of sanctions against the bulk of the population will be significant or insignificant. economic development and stability of the political situation.

Economic sanctions against the Russian Federation

Let's take a closer look at the sanctions against the Russian Federation, which have the ultimate goal of weakening the economy by restricting international trade and other commercial relationships.

Economic sanctions against Russia:

• An embargo is a ban on the import of goods into a country and, accordingly, the export from it. Quite an effective way of influencing, since foreign trade volumes can form an impressive share of GDP.
• The measure will not be effective enough only if the state is fully capable of providing itself, for example, with food or everyday goods. In addition, contrary to the expectations of opponents, the economic isolation of Russia can have a beneficial effect on the general state of the economy and even contribute to its increased growth through the development of private entrepreneurship and small and medium-sized businesses.
• A ban on the circulation of certain categories of goods with a country subject to sanctions. This measure implies a cessation of import and export, for example, of weapons or high-tech products. Here the consequences are similar to the application of an embargo measure, and will have tangible results in the event of total dependence of the disgraced state on this product and the impossibility of finding a replacement for it.
• The third way to economically strangle Russia is to impose restrictions on our part on the activities of financial institutions, organizations, companies and investors from third countries who dare to continue relations with organizations and firms of a rogue state. This applies, for example, to investments in business or construction, provision of technical support services for complex equipment, questions and consultations on production support, and so on. Thus, they get a spoke in the wheels from the initiator of the sanctions. Because you cannot directly oblige a third party by law to terminate profitable cooperation.
• Financial restrictions in relation to organizations, institutions or individual citizens of the offending state, which imply the arrest or freezing of their bank accounts or other assets and other actions of a similar nature.

Economic measures may have global consequences for a state that finds itself in an isolated state, and pose a serious threat to the well-being and existing standard of living of citizens. In particular, economic crisis in Russia, many experts associate it with the negative consequences of the application of sanctions by Western countries, while others argue that the crisis was provoked mainly by a decrease in world oil prices.

Political sanctions against the Russian Federation

Measures of political influence in relation to a country whose actions cause rejection by another state or the world community are the following:

• Severance of diplomatic relations, recall of ambassadors and consuls. What this leads to: the level of interaction deteriorates significantly political subjects at the international level, connections, contacts and international relations are disrupted, and it becomes difficult to resolve important issues foreign policy both states.
• Social and sports measures - restrictions for participants in international competitions, Olympiads, competitions, and so on. Someone else claims that sports are free of politics! This has not been the case for a long time, and the past Olympic Games are direct confirmation of this! Against the backdrop of such politicization of sports, one can’t help but wonder how deeply politics has penetrated into all spheres of our lives.
• Restrictions imposed on private individuals - citizens of the guilty states. Usually this is a partial or complete ban on entry for citizens suspected of committing antisocial or illegal acts. Or simply those whose social or socio-political activities, for a number of reasons, do not suit the initiator of the application of sanctions.

Political sanctions are the cessation of all types international cooperation and a kind of boycott of relations with Russia, which, however, are not capable of causing such significant damage compared to the effect of economic restrictions. However, in an already difficult political situation, it becomes especially difficult for both one and the other side to find ways to resolve it and quickly resolve emerging issues.

Sanctions USA against the Russian Federation

The first to impose sanctions against the Russian Federation in connection with its support for Crimea, which declared its independence and intention to become part of the Russian Federation, were the United States of America. The explanation for this political decision is that the actions of the Russian side were seen as unacceptable interference in the internal affairs of another sovereign state- Ukraine.

The reasons that served as the basis for the introduction of sanctions against the Russian Federation

It should be noted that the United States supported the opposition from the very beginning of the destabilization of the situation in the former Soviet republic. The goal was to seize the Ukrainian bridgehead during the expected change of the political system and use the advantageous proximity of Ukraine to the Russian Federation. Thus, by the time the annexation of Crimea began, a situation had developed in which the newly-minted government had to challenge the sovereignty of Ukraine, the legitimacy of whose power the Russian side, for obvious reasons, could not recognize.

In this regard, Russia could not consider the new rulers who came to power through a military coup d’etat as full-fledged subjects international law. And also to take into consideration their claims regarding the illegality of the actions of the Crimean Republic, which made a politically significant decision to secede from Ukraine through a popular vote.

For an unclear reason, the United States supported it in every possible way regarding the legitimacy of the claims of the new Ukrainian government in relation to Crimea. This is precisely where the interest of the superpower can be traced, which, unlike the Russian side, for some reason was not embarrassed by the fact of the coup. The United States recognized the new government of Ukraine as legitimate.

Thus, the actions of the Russian Federation automatically fell into the category of contrary to the norms of international law, with all the ensuing consequences. And the United States actually confirmed its involvement and assistance in destabilizing the situation in Ukraine in order to achieve a change in the ruling regime.

What sanctions were applied against the Russian Federation

The United States of America, together with Canada, introduced restrictive sanctions against the Russian Federation on March 17, 2014, at the height of the “Crimean Spring”. Having seen that events in Ukraine were not developing according to the developed scenario (the very fact of the participation and sponsorship of the coup by the West is no longer subject to doubt), it was decided to use additional levers of influence on the Russian Federation. The true purpose of applying sanctions was to force Russia not to interfere in the process of changing power in the former Soviet republic, which would allow it to be fully controlled.

The introduction of restrictive measures took place in the context of the beginning of the revival of the Russian economy, thereby representing a fairly significant blow to its development. The United States also at that time had strong economic ties with Russian companies, which were sacrificed purely for political reasons of the leadership.

The first to be sanctioned against the Russian Federation were influential Russian political and public figures who, according to US intelligence services, were involved in what was happening in Ukraine. In total - 11 people, and the legitimate President of Ukraine Viktor Yanukovych was among them! And although this involvement was not even slightly justified or confirmed by facts, this did not in any way influence the decision-making. This group of people was banned from entering the United States, and assets and bank accounts in financial and other institutions subject to the jurisdiction of the United States were blocked.

The Russian citizens who were blacklisted did not have any property or assets in the United States, and also did not plan visits in the foreseeable future. This is what an official statement was made in response to the restrictions imposed on them. The United States, in turn, responded that if the instructions were not followed, the circle of persons could be significantly expanded.

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This was done after a referendum in Crimea, as a result of which a decision was made to secede from Ukraine. The United States has added 19 more citizens of the Russian Federation and Crimea to its sanctions portfolio. Among them were not only politicians, but also large businessmen who had nothing to do with political affairs at all. However, they were close to President V.V. Putin, and thus it was planned to put pressure on him. In July 2014, sanctions against the Russian Federation affected the heads and managers of the largest Russian enterprises in the defense and raw materials sectors.

The United States sanctions lists against Russian citizens and organizations were regularly updated until September 2016, and this is most likely not the end, since the duration of the sanctions has not been determined. Some US sanctions against the Russian Federation concerning military and space cooperation, as well as some of the most important areas of joint activities, have been lifted or softened. In total, as of September, the blacklist includes hundreds of individuals and legal entities from Russia, Ukraine and Crimea.

Currently, the US government is considering options to introduce new sanctions against the Russian Federation in connection with military actions in Syria. Officials claim that such a policy with regard to influencing the Russian Federation is quite effective. On the other hand, they also recognize the indisputable fact that it was not possible to achieve any significant changes in the policy of the Russian Federation in relation to what is happening in Ukraine as a result of the use of such measures. This once again confirms the importance for the States of the very fact of applying restrictions against Russia in order to demonstrate its superiority.

EU sanctions against Russiaand participation of other countries

The states of the European Union are, in fact, in in full force supported restrictive measures against the Russian Federation under pressure from the United States. The economies of many of them suffered greatly as a result of Russia's retaliatory measures. However, in their opinion, they could have suffered more serious damage if they had taken the opposite side. In turn, Europe, by analogy with the States, has restricted entry for a number of persons, the list of which is growing to this day.

Also, their accounts are subject to freezing and assets are blocked if they are in the territory European countries who adopted sanctions against the Russian Federation. A little later, Australia, Japan and a number of other states, whose cooperation with the States is of global importance for the economy and political weight in the world, joined restrictive measures against Russia.

The United States and the EU, in an attempt to isolate the Russian Federation as much as possible from the rest of the world, promoted their policy of sanctions among all other countries. They involved the UN, which has repeatedly made anti-Russian calls. As a result, even Switzerland, which is not a member of the EU and always prefers to maintain neutrality, accepted the introduction of sanctions against the Russian Federation! However, it was not possible to gain support from the majority of participants in the world community - this is South America, all of Asia (excluding Japan), the African continent and the Arabian Peninsula.

Russian response and consequences

The first response to sanctions against the Russian Federation by the United States and the West was a food embargo affecting them all, which came into force in August 2014. The Russian food embargo is in effect until the end of 2018, and may be further extended.

This measure hit hard on the economies of a number of states, a fair share of whose GDP was formed thanks to food exports: for example, Poland, whose main consumer of agricultural products was Russia. For this reason, some European countries do not support new sanctions against the Russian Federation and advocate the abolition or mitigation of existing ones.

Türkiye, a favorite holiday destination for Russians, has lost the lion's share of the revenue generated annually by the multimillion-dollar influx Russian tourists. Türkiye also supplied the Russian Federation with a huge amount of food and consumer goods.

This was followed by the creation of its own list of foreign individuals promoting anti-Russian policies and sentiments. By analogy, similar restrictions are applied to them, as is the case with US and EU sanctions against the Russian Federation. In September 2016, one of the results of the sanctions was the suspension of the fulfillment of obligations by the Russian side of the agreement with the United States on the disposal of weapons-grade plutonium.

Having abandoned imports from Europe, the Russian Federation made up for this deficiency by expanding the scope of trade with the regions Southeast Asia, Latin and South America. It is noteworthy that the volume of food imports from the same Argentina and Brazil increased by half a year before the entry into force of anti-Russian sanctions.

Another positive point is that import substitution in the Russian Federation has had a positive effect on the rise of the domestic agricultural industry. Although the industry had been developing quite dynamically before, inexpensive and high-quality products from foreign competitors deprived Russian farmers of a fair share of profits.

Against the background of the introduction of sanctions against Russia, the country has further strengthened relations with friendly trading partners of the East, in particular with China. Many Asian states have refused to impose sanctions against the Russian Federation, citing close cooperation in economic and political terms.

EU sanctions against the Russian Federation have resulted in extremely unfavorable economic consequences and many disagreements among the countries of the European Union. The damage caused to the economy is not commensurate with any positive aspects of this policy, which are not at all possible to highlight. In this regard, European states are seriously thinking about the problem that caused the initial introduction of restrictions by the United States against the Russian Federation.

In particular, states that are less dependent on the influence of the United States have taken an active position in favor of lifting or limiting sanctions measures against Russia. For example, Cyprus, which has suffered greatly from the lack of Russian tourists, is calling for a reconsideration of decisions for a speedy return to previous relations and stabilization of its economy.

The Czech Republic, from the very beginning of the application of sanctions against the Russian Federation, was on the side of the United States in terms of assessing what was happening in Ukraine, but later changed its position to the exact opposite. Many countries are calling for starting a constructive dialogue with the Russian government in order to jointly find a way out of the new crisis brewing in Europe.

A number of EU states directly state that they are hastily decisions made were not justified by the real need for such measures, or their consequences simply turned out to be catastrophic. The expected onset of any positive changes does not occur.

Also, despite the adopted US sanctions against the Russian Federation or bypassing them, foreign investments in previously launched projects in Russia do not stop. The vast majority of foreign companies associated with Russian enterprises through partnerships continue mutually beneficial cooperation, despite political differences between the governments of their countries.

Economic sanctions against Russia – an excursion into history

This is not the first time that the Russian Federation has been subjected to non-forceful influence from the West with the aim of weakening the economy or creating obstacles to its growth, undermining government structure or attempts to force a change in foreign policy. The first economic sanctions against Russia were introduced back in 1925, during the Soviet era, when the United States and Europe refused to accept gold as payment, demanding oil, timber or grain. Russia at that time, after the revolution and the collapse of the economy, was in great need of imported equipment, technologies and a number of goods. And there was also the task of ceasing to be a raw materials appendage for the West.

In 1929, an embargo was introduced on the export of any goods except grain! Thus, Western countries tried in every possible way to hinder the industrial growth of the then young Soviet power. Naturally, the developed capitalist world could not come to terms with the emergence of a communist system in one of the world's largest powers. Sanctions against the USSR continued to apply until 1934.

After the end of World War II, the United States also sought to weaken the USSR by introducing a policy of preventing the export of technology to the country in order to artificially slow down the industrialization of the USSR and assert its superiority. As we know from history, the Cold War created unprecedented tensions between the two world powers. America then saw in the USSR an extremely strong rival. However, the policy of containment did not ultimately bring any significant results. Although in technology the Soviet Union, of course, was somewhat behind the progressive West.

A remarkable event that accompanied the entry Soviet troops to Afghanistan, the United States boycotted the Olympic Games then held in Moscow. As a result, American athletes did not participate. US attempts to persuade European countries to ignore the games only led to the refusal of some athletes to participate. European countries asked their own Olympic committees to make decisions and, for the most part, supported the games. In response, the USSR boycotted the following games in Los Angeles.

Will new sanctions be introduced against the Russian Federation?

Today's measures against Russia are a repetition of techniques that have already been tested for decades. To this day, the question of who lost more from the imposition of sanctions remains quite controversial. Perhaps the States did not initially count on the result, but the very fact of demonstrating their strength and determination is important to them, which they have been showing for half a century in various regions of the planet. In the case of the Russian Federation, conducting military operations is extremely unprofitable and dangerous, so “coercive” measures were chosen through various machinations.

The latest sanctions against the Russian Federation in connection with Crimea have become the most ambitious in terms of the number of countries involved. Here the matter is explained by the fact that the United States is actually already imposing its will on many states of the world, capturing the global economy through the widespread introduction of its currency and, in general, using its influence. States, fearing damage to their economic stability, are forced to act under the dictation of the United States and take their side. Otherwise, they risk becoming political outcasts themselves.

Today, the following is obvious: EU sanctions against the Russian Federation, aimed at causing economic damage to the country, have not been successful. In conditions of isolation from the West, Russia strengthened relations with the East. Also, the rejection of the share of exports of goods, and in particular food, allowed Russia to reorient the economy towards domestic consumption and support agriculture and domestic production.

Sanctions against the Russian Federation will not lead to a change in its political course. This was stated by the head Russian state still in response to the first restrictions. In addition, the US policy is not supported by any real facts and evidence that could justify the legitimacy of the restrictions applied to Russia. As well as exerting pressure on other countries in order to join forces in the global infringement of geopolitical and economic interests RF.

21Aug

What are Sanctions

Sanctions- it is political and economic instrument, used by countries or international organizations to persuade a particular government or group of governments to change their policies by restricting trade, investment, or other commercial activities.

Who are the sanctions applied to?

In most cases this tool applies to those countries that flagrantly violate international legislation, violate human rights, threaten world order, create a threat by developing or threatening nuclear or other mass destruction.

What are the sanctions? Types of sanctions.

Since this instrument of influence has a very wide area of ​​application, there are a huge number of types with different subtypes of sanctions. We will look at three main types:

• Personal sanctions;
• Trade sanctions;
• Economic sanctions.

Personal sanctions are:

To personal sanctions include actions in relation to specific persons and their environment related to the subject of the violation. Absolutely applicable to such people various methods international influence, such as: blocking foreign accounts, seizure of property, ban on entry into the territory, opening of financial and criminal investigations. Although at first glance it seems that this measure does not bring much effect on a large scale, it still exists. Based on historical facts, it can be noted that most governments prefer to store finances and have property outside their country. Thus, the threat of losing everything they have acquired can influence the course of their policies.

Trade sanctions are:

Trade sanctions, this is the softest and most common way to bring some sense into the offender. These may include various abolitions of trade preferences, the establishment of quotas and similar restrictions on international trade.

Economic sanctions are:

Economic sanctions are punitive in nature and intended to isolate the violator’s country. These may include:

• Embargo on the sale of resources and products;
• Freeze of foreign assets of the state and its companies;
• Ban on money transfers (for example, disconnection from);
• Ban on technology transfer, both military and civilian;
• Isolating a country by banning entry into other countries.

Since the full range of such sanctions can economically destroy virtually any country on the planet, they are never applied in full. Typically, such measures are applied piecemeal in order to leave the opportunity to resolve the conflict, so to speak, in a soft and painless manner.

Why sanctions are so dangerous and effective.

In order to understand the destructive essence of sanctions, one should realize that in the era of globalization there are practically no completely self-sufficient countries left in the world. For example, some countries rely on new scientific technologies, others on agricultural production, and others on resource extraction. And all this works great thanks to international trade.

EU and US sanctions against Russia can be assessed differently, but their impact on the economic and political situation of the country cannot be ignored. What exactly have Western countries done and how does this threaten Russia?

Worldwide hysteria has been going on for several months, with the goal of fooling the Western public and presenting Russia as a sort of modern monster, an enemy of the entire civilized world. Economic sanctions were announced with great fanfare, which, according to their authors, should punish and “bring some sense” to Russia.

A careful consideration and analysis of the most announced sanctions and their consequences indicates that no one really wants economic and political aggravation, and the loudmouthing of politicians is nothing more than a game for the public.

Reacting to Crimean events, the USA, EU, Canada and some other countries loudly announced the introduction of sanctions against Russia. The promptly compiled lists consisted of individuals who, in the opinion of those imposing sanctions, were involved in the “annexation” of Crimea.

The Russians listed in them were subject to visa restrictions and asset freezes in the countries that were imposing sanctions. Companies from these countries were also prohibited from having business contacts with individuals and organizations on these lists.

Here are some “terrible” steps for Russia that some countries have taken:

• Among a dozen more sanctions, the United States banned the entry of State Duma deputy Elena Mizulina;
• Switzerland has stopped the process of creating an FTA (free trade area) with the Customs Union (Russia, Belarus, Kazakhstan). In addition to the one mentioned, three more sanctions were introduced;
• Ukraine turned out to be more modest: due to biased coverage of Ukrainian events, it was announced that the broadcast of the Rossiya TV channel on its territory would be stopped. In addition, another sanction was introduced;
• Among the eight sanctions adopted, Canada decided to expel all Russian military personnel from its territory;
• Latvia was especially overzealous: among the 13 sanctions, a restriction was introduced on the stay of Russians on its territory for up to 90 days.

A significant reaction to the listed sanctions was the comment of Russian President V.V. Putin, in which he said that, despite all the differences between Russians and Europeans, they have the same fundamental interests. For a united Europe to occupy its rightful place in the world, we need to join forces and not move away from each other.

Which organizations have introduced anti-Russian sanctions?

So, in response to Russia’s foreign policy actions in Crimea, a number of countries introduced sanctions, including visa restrictions and a ban on business contacts with certain Russian companies.

Which political institutions of the EU, USA and other countries joined the sanctions in response to Russian actions in Crimea, and what measures did they take against Russia?

OECD ( Organization for Economic Cooperation from English. Organization for Economic Co-operation and Development, OECD ) is economic organization countries with developed economies that recognize democratic principles and the priorities of a free market economy.

The OECD Governing Council decided to suspend the admission of Russia to its ranks and expand interaction with Ukraine.

NATO (North Atlantic Treaty Organization) is a military-political bloc that includes the USA, Canada and most EU countries. Founded April 4, 1949. Founded in the USA to counter the influence of the USSR on European countries.

NATO adopted the following sanctions against Russia:

• Joint military missions with Russia, as well as military and civilian contacts at all levels, have been suspended.
• Cooperation with Russia in the process of eliminating Syria's chemical weapons has been frozen. Russia has actually been removed from this process.
• All contacts, except for interaction between ambassadors and above, between NATO and the Russian Federation have been stopped.
• The NATO Parliamentary Assembly has ceased contacts with the Federal Assembly of the Russian Federation.
• Employees of the Russian Mission to NATO are deprived of free access to its headquarters. The exception is the ambassador, his deputies and two assistants.

EU (European Union) is an economic and political association of 28 European countries. It was legally formalized in 1992 by the Maastricht Treaty and came into force on November 1, 1993.

The EU has imposed the following sanctions against Russia:

• At the beginning of March 2014, the EU suspended negotiations on easing the visa regime for Russians.
• In mid-March of the same year, a list of Russian and Crimean politicians and functionaries (individuals) who were prohibited from entering the EU or transit through its territory was published. In addition, all economic assets owned or controlled by these individuals were frozen.
• On March 20, 2014, the EU-Russia summit, which was planned for June of the same year, was cancelled.
• On March 21, 2014, due to the escalation of the confrontation in Crimea, the list of those subject to sanctions was expanded to 12 persons, including the head of the Rossiya Segodnya agency D. Kiselev.
• On March 25, 2014, the EU banned its embassies in Russia from issuing all types of visas to residents of Crimea.
• In mid-April 2014, the European Parliament decided to recommend that all countries participating in the project abandon the construction of the South Stream gas pipeline.
• At the end of April 2014, the list of persons subject to sanctions was expanded by another 15 people.

Council of Europe – international organization for promoting the development of standards of law, democracy, human rights, rule of law and cultural contacts. Founded in 1949 and includes 47 states with a population of more than 800 million people.

The Council of Europe canceled all events in Russia, the Russian delegation lost its voting rights and its representatives were banned from participating in leadership positions in PACE (Parliamentary Assembly). Until the end of 2014, Russian representatives are prohibited from participating in PACE observer missions.

Eurocontrol(eng. Eurocontrol) – public organization for the Safety of Air Navigation in Europe, founded in 1960. Designed to organize air traffic throughout Europe. Includes 40 member states, headquartered in Brussels.

Eurocontrol prohibits air travel to Crimea and flights within the air borders of Crimea.

Big Eight(eng. Group of eight, G8) is an informal club of the governments of Great Britain, Germany, USA, Canada, Italy, France, Japan and Russia.

Club members suspended Russia's participation in the G8 along with preparations for the June meeting of the heads of G8 countries in Sochi.

Which countries have imposed sanctions against Russia

In addition to international organizations, individual countries have also imposed various sanctions against Russia for the events in Crimea.

• Australia canceled government visits to Russia, and also froze the accounts and banned entry of eight Russians and four Ukrainians who played key roles in the Russian-Ukrainian conflict.
• Albania joined the group of European countries that announced sanctions against Russia.
• Bulgaria dismantled the South Stream pipeline laid through its territory.
• United Kingdom stopped supplies of military products to Russia and canceled joint military exercises.
• Germany stopped military cooperation with Russia: fulfillment of military contracts worth up to $1 billion, export of military products to Russia, sale of satellite technologies. The intergovernmental consultations “St. Petersburg Dialogue” have been terminated.
• Iceland joined the package of EU sanctions against Russia.

Canada, Given the presence of a powerful Ukrainian diaspora, it was among the leaders in the number of sanctions against Russia. It stopped all military interaction with Russia, expelled Russian military personnel from the country, closed visas and froze the assets of Russian and Crimean officials.

The Canadian government imposed sanctions against Rossiya Joint Stock Bank, Chernomorneftegaz, Expobank and Rosenergobank. In fact, Canadians have stopped cooperation with Russia on Arctic issues and joint space programs. On suspicion of activities, the deputy military attache of the Russian embassy was expelled from Canada, and several Russian officials were personally subject to sanctions.

Canadian sanctions mirror those imposed by the United States in almost all respects.

• Latvia stopped military cooperation with the Russian Federation and banned the broadcasting of the Rossiya channel on its territory.
• Moldova came out with sanctions against Russia along with EU countries.
• Netherlands interrupted cooperation with Russia in the military sphere.
• Norway interrupted military cooperation with Russia, joined EU sanctions and interrupted the process of creating an FTA with the Customs Union.
• New Zealand interrupted negotiations on the creation of an FTA with the Customs Union and recalled the Minister of Trade from Moscow.
• Poland canceled the forum of regions with the Russian Federation, and Polish post stopped delivery to residents of Crimea.

USA On March 4, 2014, investment and military cooperation with the Russian Federation was stopped, negotiations and conferences were cancelled. On March 17, Barack Obama signed a decree imposing sanctions on certain Russian officials, including frozen accounts and travel bans.

Among those under sanctions are senior officials of the Russian legislative, representative and executive powers of Russia. Already on March 20, 2014, the list was significantly expanded and additional sanctions were introduced against Rossiya Bank, in which the closest associates of President V. Putin have assets - Yu. Kovalchuk, the Rotenberg brothers, G. Timchenko, etc. March 27, 2014 In 2009, cooperation between the United States and the Russian Federation in the fight against drugs was terminated and the export of “potentially dangerous” products to the Russian Federation was stopped.

The list of US sanctions against Russia and the suspension of contacts between various organizations covers a variety of areas: contacts between law enforcement systems, cooperation in space and missile defense, energy systems, etc.

In April 2014, the list of Russian and Crimean officials and businessmen subject to sanctions was expanded by another 14 people. At the same time, sanctions were introduced against another 17 Russian companies. The United States has stopped supplies to Russia of high-tech products that can be used in the defense complex, and previously issued licenses were canceled.

Sanctions against companies

The list of companies and banks under sanctions is very wide. Among the most famous are the Rossiya and Sobinbank banks, whose payment cards (Visa and MasterCard) are no longer serviced anywhere in the world.

Companies associated with the president's inner circle (Stroygazmontazh, AkvaNika LLC, Transoil LLC, Avia Group Nord LLC, Zest CJSC, InvestCapitalBank, Stroytransgaz Holding, Avia Group LLC, Sobinbank, Sakhatrans , SMP Bank, Stroytransgaz, Stroytransgaz LLC, Stroytransgaz OJSC, Stroytransgaz-M LLC, Abros Investment Company and Volga Group) were also subject to sanctions.

The assets of these companies are frozen, exports to the United States have effectively ceased, and licenses for imports from the United States will most likely not be issued.

Sanctions from other countries

• Ukraine fully acceded to EU sanctions against the Russian Federation. Broadcasting on its territory of the Russian TV channels NTV Mir, Vesti, and Channel One was prohibited. World Wide Web", "Russia 24", "RTR Planet", military supplies to Russia were frozen, water supply to the Crimean Canal was stopped. More than a hundred Russian officials are deprived of the opportunity to enter the territory of Ukraine, and men aged 16-60 years are also not allowed to enter.
• France intends to terminate the agreement on the construction of Mistral helicopter carriers, and has also suspended almost completely military cooperation with Russia.
• Switzerland stopped the creation of an FTA with the Customs Union, coordinated EU sanctions with its own policy towards Russia, confirmed European visa restrictions for its territory, and suspended defense cooperation with Russia. 33 Russian officials who fell under EU sanctions are deprived of the opportunity to conduct financial transactions in Switzerland, which introduced and then expanded its own sanctions list.
• Sweden froze cooperation with the Russian Federation in the military field.
• Montenegro joined the sanctions against Russia adopted by the EU.
• Czech Republic banned the state postal service deliver parcels and other correspondence to Crimea.
• Estonia froze the assets of a number of Russian officials and companies.
• Japan curtailed negotiations on visa facilitation, suspended investment agreements, and interrupted joint activities in the military sphere and aeronautics. The issuance of visas to several dozen officials and other persons has been stopped.

As you can see, the list of sanctions adopted against Russia is more than impressive. In a global economy, limiting the possibility of lending to basic industries cannot but affect the state of the Russian economy as a whole.

The need to repay loans from the main Russian debtors of Western financial institutions is already putting pressure on the Russian budget due to the need to allocate significant funds to maintain their solvency. The cessation of cooperation in the energy sector calls into question the development of promising oil and gas fields on the Arctic shelf, and a refusal to cooperate in the military sphere could significantly reduce Russian arms exports.

It cannot be said that the West is not interested in cooperation with Russia. In the German economy alone, about 400 thousand people are employed in enterprises working under German-Russian contracts. The economic feasibility of cooperation is frustrated by the political ambitions of the parties, who suffer mutual losses.

It is difficult to predict whether a way out of this impasse will be found in the near future. In any case, it seems that the parties are clear that a further deterioration of relations will seriously affect the economies of the countries, causing a drop in living standards and serious social upheavals.