The West is against: the most important thing about sanctions against Russia. International sanctions against the Russian Federation: we explain

In 2018, the Russian economy will continue to feel the brunt of sanctions, the main initiator of which will again be the United States. Some more items have been added to the list of prohibitive measures against Russia, which began to take effect on January 29. And yet, talk about the advisability of their introduction continues to subside. Even the US Treasury Department expressed that such actions could have a negative impact not only on the Russian, but also on the American situation. So what does the package of documents released by Capitol lawmakers say?

This time, the elected representatives of the people, sitting in Washington, decided to go through the elite of the Russian Federation. If previously restrictions affected them only indirectly, mostly affecting the ordinary population (for example, the suspension of export-import relations led to a natural increase in food prices, etc.), now the country's leading figures will have to experience some hardships on themselves.

This is precisely what the “Kremlin report” seems to hint at - a recently published list of 210 individuals (114 well-known officials and heads of state corporations and 96 oligarchs, whose fortune is estimated at $1 billion or more). In addition to many specific deputies, ministers, speakers, heads of intelligence services, directors of large companies and representatives of the presidential administration, such high-ranking people as:

Dmitry Peskov (press secretary of V.V. Putin);
Dmitry Medvedev (Chairman of the Government);
Sergei Shoigu (Army General and Head of the Ministry of Defense);
Igor Sechin (executive director of the oil and gas organization Rosneft);
German Gref (Head of Sberbank) and many others.

Among businessmen, Americans paid close attention to Roman Abramovich (entrepreneur, billionaire and former governor of the Chukotka Autonomous Okrug), Alisher Usmanov (founder of USM Holdings and a man whose financial savings were estimated by Bloomberg at $20 billion), Boris Rotenberg (member of the board of directors of SMP Bank and vice-president of the Judo Federation in the country) and others.

Although the US Treasury Department has emphasized that these individuals will not be subject to any additional prohibitions beyond those that have already been adopted previously, some economic and political experts believe just the opposite. Representatives of the government agency assured the media and the public that such a list was created and published “solely at the request of the CAATSA law,” which means it does not allegedly indicate that the authorities have information about the illegal activities of these people and does not call on American citizens to immediately refuse to conduct them partnership affairs. And yet it is obvious that the document was not born by chance. It is quite possible that in the future the foreign property of members on the “black list” will begin to be seized, accounts will be frozen, entry will be prohibited, etc.

New sanctions 4 strikes on Russia

March 2, 2018 Donald Trump signed a decree extending sanctions against the Russian Federation, imposed in 2014, for another year. In addition to the restrictions that took place last year, new sanctions can be expected in 2018. The United States plans to influence in 4 directions:

Introduction of sanctions against citizens purchasing Russian sovereign debt. Such a step could not only bring serious problems for the Russians themselves, but also scare off foreign investors or lead to a significant outflow of foreign capital.
New sanctions against oligarchs, which will now affect not only the influential politicians themselves and their capital, but will also affect people close to those on the list, namely: children and relatives, company employees.
Imposing sanctions on individuals who are held responsible for human rights violations.
Sanctions against the defense sector, which may affect companies involved in the development of modern technologies and the production of military goods.

Thus, we can expect that the list of Russians who will be affected by Western sanctions will expand significantly, and the oligarchs will not only lose the opportunity to store their assets outside the country and relax at their favorite resorts, but also will not be able to educate their children in highly ranked universities.

Collaboration: Keep it to a Minimum

If we talk about international partnerships between companies, then here the situation takes on more distinct and definite forms. The list of US sanctions against Russia in 2018 provides for an even more tangible and significant reduction in economic relations in the intelligence and defense spheres. Also from now on:

Americans will be prohibited from providing new technologies, projects, ideas and developments to those firms that are under restrictions. All organizations that provide assistance or financial support to companies and people who are already subject to prohibitions will be subject to a strict regulatory mechanism.
Measures of economic coercion will be able to be imposed on enterprises owned by Russia, but based outside its territories, and specializing, in particular, in transport, metallurgy, railway construction and mining, i.e. in large industrial sectors.
If the President of America receives information from the Treasury Department regarding the involvement of individuals in corrupt and fraudulent schemes, he will be able to impose individual sanctions against them.

Neither the President of the States, nor especially the President of the Russian Federation, will have the right to unilaterally lift any restrictions. Acting as a kind of world gendarme, the Congress reserves this privilege exclusively for itself. Assistance in decision-making should be provided by the Ministry of Finance and Commerce in cooperation with the State Department.
It will not be possible to invest more than $10 million in assets of the Russian Federation. Otherwise, this will be considered as a desire to illegally enrich the Government of the country.
Any entities that are caught participating in malicious cyber attacks, sponsoring hacking or espionage in the interests of Russia will be subject to sanctions, and these can be citizens of the Russian Federation, and in principle any foreigners, and residents of the United States themselves.

Mutual expulsions of diplomats (April 2018)

UK and Russia

Following the scandal surrounding the poisoning of former GRU officer Sergei Skripal and his daughter, 23 Russian diplomats were expelled from the UK. In response to this step, the Russian government decided to introduce symmetrical sanctions.

USA and Russia

In March 2018, the Russian Consulate General in Seattle was closed and 60 Russian diplomats were expelled from the United States. Moreover, the list included not only consulate employees, but also representatives of the Russian Federation to the UN. The official reason is the difficult situation surrounding the poisoning in Salisbury.

Commenting on the situation, Russian Foreign Minister Sergei Lavrov said that retaliatory measures would be taken as soon as possible. as soon as possible. Already in March, the government revoked the work permit of the St. Petersburg US Consulate General and expelled 60 American diplomats from Russia, giving them until 04/05/18 to leave the territory of the Russian Federation. The official reason is activities incompatible with the status of a diplomat.

Experts say that a difficult period is coming in relations with the United States and Europe, and the blame for such an unfavorable development of events lies on the American side.

Personal sanctions (April 2018 list)

The West began to turn the promised threats into reality. The first step was the announcement of a new (additional) list of individuals and companies against which sanctions were imposed.

In 2018, the following were under attack:

14 Russian companies;
24 Russians, of which 8 oligarchs and 16 officials;
2 Mexican entrepreneurs doing business in the Russian Federation.

Of course, personal sanctions against politicians and oligarchs are no longer news. One could even say that they are in some way formal, because the assets of these people have long been transferred to Russian banks. More worrying is the fact that the list included large Russian companies, including the Kuban agricultural holding and the Rusal company owned by Oleg Deripaska.

For the largest domestic grain exporter and aluminum producer, the imposed sanctions are more than a serious test, because according to the new document signed by Trump, problems are guaranteed not only for the enterprises themselves, but also for all those who decide to purchase the products they sell.

Also on the list of companies were Rosoboronexport, which suggests the West’s desire to oust the Russian Federation from the global arms market.

Thus, the list of sanctions in 2018 will be directed not so much against the Russian Federation itself, but against its potential external partners who could still remain after the release of all previous packages.

We invite you to familiarize yourself with a complete list of US sanctions against the Russian Federation (document in English):

US State Department spokeswoman Heather Nauert said that the bans that have applied to America's political opponent until now have been more than successful, so there is no particular need to introduce tough measures. According to the diplomat, the previous provisions adopted within the framework of the laws “On Supporting Sovereignty, Integrity, Democracy and Economic Stability in Ukraine”, “On Supporting the Freedom of Ukraine” and “On Countering America’s Adversaries Through Sanctions” Act”, CAATSA), justify themselves “excellently”. Thus, the Russian military-industrial complex has already experienced their brunt after several foreign governments refused to purchase defense technologies totaling several billion dollars.

Is everything so rosy for the Americans themselves?

However, along with all of the above, the US Department of the Treasury could not fail to notice one objective fact - if strong pressure on Russia continues, this could lead not only to the destabilization of its economy and an increase in the burden on the domestic banking sector, but also to destructive processes in the States.

This state of affairs follows from the role of the Russian Federation on the world political and economic arena and the number of assets it owns - if these parameters are not taken into account and the consequences are not correctly calculated, the result will be extremely large-scale and even catastrophic. Negative effects can go far beyond Russia and spread to the leaders themselves - European and American businesses and their markets, companies and investors.

By the way, speaking of Europe, the United States also needs to enlist its support in order to fully implement the policy in the chosen direction. Without European partners, the influence of the United States will no longer be as significant. So, if we compare countries in terms of ownership of Russian treasury securities, it turns out that in the third quarter of 2017, America accounted for only $200 million versus 400 million for Great Britain, 600 million for Italy and 700 million for France.

Even if in Washington they are not planning to carry out an independent attack on the Russian national debt and attempt to put pressure on the ruble exchange rate, yet discussions about various coercive measures continue to be quite active. What will come of this, and how Moscow will react to it, time will tell.

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Since 2014, Western countries have imposed sanctions against Russian citizens and companies. Their influence is assessed contradictory - the increased confrontation between Russia and the West has a tangible negative impact in some areas of the economy, while in others it has a positive effect. What are sanctions, why were they introduced and how did they affect the Russian economy - read the article.

The concept of sanctions in modern usage is associated with the crisis, trade wars, “black lists” and other prohibitions. But in general view sanctions are economic restrictions that one country imposes against another country (or group of countries).

The purpose of imposing sanctions is to force the government of the country to make a certain decision by limiting economic transactions. For example, US sanctions imposed against Iran are intended to force the authorities to curtail their nuclear research program. Sometimes sanctions are imposed not by one country, but by a group of countries (European Union) or an international organization (UN).

IN modern history sanctions were introduced to force countries to make such decisions:

withdraw troops from the territory of another country;
accept the terms international treaty(disarmament, non-proliferation nuclear weapons);
stop political persecution of opposition forces, hold fair elections;
stop supporting international terrorism.

Sanctions come in different types depending on who or what they are aimed at. In particular, the literature identifies the following types of sanctions:

individual– against individual individuals and legal entities;
diplomatic– expulsion of diplomats from the country, termination of diplomatic relations;
sectoral– restrictions on cooperation with a particular industry in the country;
commodity– a ban on the purchase or sale of certain goods;
financial– ban on participation international market capital.

Most widely in recent years Individual and sectoral sanctions are used (against Russia), as well as product sanctions (against Iran).

In general, sanctions can be called an intermediate stage between diplomatic measures ( with which little can be achieved) and a full-fledged war ( to which in modern world few people will dare).

Economic sanctions are not always effective; for example, it is almost impossible to stop military aggression with their help, and the degree of influence of sanctions on the economy depends on many factors. Sanctions against hostile countries cannot be effective (because trade between them is already minimal).

From the history of economic sanctions

Economic sanctions imposed against individual countries have existed for a very long time. The first mention of such restrictions dates back to 423 BC, when Athens banned representatives of the Megara region from visiting its ports and markets, and this led to the outbreak of the Peloponnesian Wars.

Sanctions began to be used widely in the 20th century. The most famous example of sanctions is the American embargo against Cuba. After the leadership of this country confiscated the property of American citizens and organizations in 1960, the import of Cuban sugar was banned in the United States. Later, an almost absolute ban was imposed on any movement of goods, and the entry of American citizens into Cuba was also prohibited. Sanctions then became more and more stringent, and only in 2016 did the United States restore diplomatic relations with Cuba.

Also known are the US sanctions against Iran, which were introduced after the overthrow of the Shah's regime as a result of the Islamic Revolution. The main ban concerned the purchase of Iranian oil and the freezing of Iranian deposits in American banks. The trade ban was lifted in 1980, and other sanctions were subsequently adjusted. In 1987-1990, restrictions on oil imports from Iran were again in effect.

In the history of the USSR, there were also cases of imposition of sanctions. The prerequisites for this were the restrictions that the United States imposed on access to high-tech products for socialist countries. In 1951 during Korean War US terminates trade agreement with the USSR, as a result of which customs tariffs on Soviet goods increase 4 times.

But the most serious consequences were the introduction of the Jackson-Vanik amendment to American trade legislation in 1974. The amendment abolished most favored nation trade status for countries that violated human rights and restricted the right to emigrate. This amendment included the decree of the Presidium of the Supreme Soviet of the USSR dated August 3, 1972, according to which those traveling abroad for permanent place residence, citizens with higher education must compensate the state for educational expenses. Free emigration from the USSR was allowed in 1989, when the amendment ceased to apply to our country.

In addition to the Jackson-Vanik amendment, the United States introduced other restrictive measures. In 1980, as a response to the input Soviet troops to Afghanistan, the United States terminates the contract for the supply of 17 million tons of grain to the USSR, bans the sale of high-tech goods, and limits cultural, economic and sports (Olympic Games) events. The grain embargo was lifted in 1981, but other restrictions were periodically introduced.

As you can see, the history of sanctions in the 20th century has many similarities with the confrontation between East and West. In the second half of the 80s, with the beginning of Perestroika, most of the restrictions were lifted.

Sanctions in the modern world

Despite the end of the Cold War and the end of the confrontation between the countries of the socialist bloc and the United States, sanctions remain a tool of international pressure even now.

As noted above, in the 20th century Iran was under US sanctions due to political reasons. In 1996, sanctions were strengthened by the US Congress. Due to the development of the missile and nuclear program, investments in the oil sector of the Iranian economy were prohibited. Violators were threatened with revocation of licenses, restrictions on lending and work with government securities. Sanctions against Iran were further strengthened after the government of Mahmoud Ahmadinejad resumed its uranium enrichment program in Iran in 2005. The sanctions applied to Iranian banks and the military industry; since 2012, the sale of Iranian oil to the United States has been banned again.

Anti-Russian sanctions - chronology

Anti-Russian sanctions in modern history begin to count down since 2014 after the referendum in Crimea, its inclusion in the Russian Federation and the start of hostilities in eastern Ukraine. Russia is accused of an armed seizure of power in Crimea, of the participation of Russian military and volunteers in battles in eastern Ukraine, of military and material support for Donetsk and Lugansk people's republics(DPR and LPR).

The bulk of the imposed sanctions are targeted - sanctions are imposed against individuals, enterprises and organizations, and sectors of the economy. Those experiencing the greatest sanctions pressure are:

individuals– officials, senior management of Russia, military leaders, owners and management of large Russian businesses, statesmen Crimea, DPR and LPR;
legal entities– companies operating in Crimea or related to the oil and gas industry, Russian banks.

Consequently, the purpose of the sanctions is to undermine the potential of the Russian economy, to prohibit the entry and any operations of persons that are associated with the transition of Crimea to the Russian Federation and military operations in eastern Ukraine.

Sanctions were introduced starting in March 2014, with each set of sanctions associated with certain events. In this case, sanctions are taken mainly against individuals or companies.

The table below provides a general chronology of sanctions against Russia:

2014

Date	Who entered	Against whom	Reason given
March 2014	USA, EU, Canada,	High-ranking Ukrainian and Russian politicians Entry prohibited, assets blocked. Visa restrictions for high-ranking officials, sanctions against individual citizens	Destabilization of the situation in Crimea and Ukraine
April 2014	USA	Crimean oil and gas company Chernomorneftegaz, Crimean and Russian officials, state companies of the Russian Federation	Failure to comply with the Geneva Conventions, inciting conflict in eastern Ukraine
May 2014	Canada, EU,	Russian banks, companies from Crimea and Sevastopol, military leadership RF
June 2014	Canada	Additional economic sanctions, expansion of the restrictive list to 11 citizens of the Russian Federation	Violation of the territorial integrity and sovereignty of Ukraine
July 2014	USA, Canada, EU	Russian defense and raw materials enterprises, banks, individual individuals and legal entities (including DPR/LPR)	Russia's position on the situation in Ukraine
August 2014	Canada, Norway, Ukraine	Russian banks, commanders of armed formations and authorities of the DPR/LPR, large companies in Crimea	Disagreement with the transition of Crimea to the jurisdiction of the Russian Federation, escalation of the conflict in eastern Ukraine
September 2014	EU, Canada	Restrictions for Russian companies financial capital EU; scientific enterprises of the Russian Federation; individual citizens of the Russian Federation	Russian interference in Ukraine
December 2014	USA, Canada, EU	Any investments in Crimea; individuals and companies operating in Crimea	Disagreement with the transition of Crimea to the jurisdiction of the Russian Federation

2015

Date	Who entered	Against whom	Reason given
January 2015	EU	Extension of sanctions imposed in March 2014 until December 2015
February 2015	EU	19 individuals and 9 legal entities – citizens of the Russian Federation, DPR/LPR	Aggravation of the situation in the southeast of Ukraine
March 2015	USA, Switzerland, EU	Extension of sanctions for a year; introduction of new legal and individuals on sanctions lists; restrictions on working with Crimea	Threats to peace, security, stability, sovereignty and territorial integrity of Ukraine
April 2015	Norway	19 individuals and 9 legal entities - residents of the Russian Federation (deputies, members of the Government, military leadership)	The situation in Ukraine
June 2015	EU	Extension of sanctions for a year	The situation in Ukraine
July 2015	USA, Albania, Iceland, Liechtenstein, Norway, Montenegro, Ukraine, Georgia	Extension of sanctions for a year, restrictions on working with companies from Crimea	Events in Ukraine
September 2015	USA, EU, Ukraine	Expansion of sanctions lists: scientific organizations; citizens and companies of the Russian Federation; airlines (ban on flights to Ukraine)	Disagreement with the transition of Crimea to the jurisdiction of the Russian Federation, escalation of the conflict in eastern Ukraine
October 2015	EU	Easing sanctions on space enterprises	The need to implement European space programs
November 2015	G20 countries	Extension of sanctions for six months	Local elections in Ukraine and Donbass
December 2015	USA	Banks, NPFs of Russia, wine companies of Crimea	Assistance in interference in the internal affairs of Ukraine

2016

Date	Who entered	Against whom	Reason given
March 2016	USA, Canada, Ukraine	Extension of US sanctions indefinitely; expansion of lists of individuals and organizations	Russian actions in Ukraine; criminal cases against Nadezhda Savchenko, Oleg Sentsov and Alexander Kolchenko
July 2016	USA	Cancellation of some sanctions against Crimea; tightening of certain measures	Unrecognized status of Crimea
August 2016	Ukraine	Expansion of the sanctions list by 250 individuals and 46 legal entities	Security threats to Ukraine
September 2016	USA, EU		Conflict in Ukraine
November 2016	USA, Switzerland, Canada	State Duma deputies from Crimea	Ukrainian crisis, non-recognition of the transition of Crimea to the Russian Federation
December 2016	USA	FSB, GRU, expulsion of 35 diplomats	Cyberattacks on the US electoral system by Russia, harassment of American diplomats in Moscow by Russian authorities

2017

Date	Who entered	Against whom	Reason given
January 2017	USA	Extension of sanctions for a year	The situation in Crimea and Ukraine
June 2017	USA, EU,	Expansion of the sanctions list; extension of existing sanctions	Ineffectiveness of the Minsk agreements
August 2017	USA, EU	Tightening of the sanctions regime; opposition to the construction of the Nord Stream 2 pipeline	Conflict in Ukraine, supplies of Siemens turbines to Crimea
October 2017	USA	Prohibition of cooperation in the raw materials and energy sector	Ineffectiveness of the Minsk agreements; cyber attacks
November 2017	Canada	30 citizens of the Russian Federation	Victims of Corrupt Foreign Governments Act

2018

Date	Who entered	Against whom	Reason given
January 2018	USA	Adding citizens of Russia and Ukraine (DPR/LPR) to blacklists; publication of the “Kremlin report”	Contact with senior management RF
March 2018	USA, Canada, EU, Norway, Ukraine	Employees of Russian law enforcement agencies; expulsion of Russian diplomats	Interference in US elections; cyber attacks; case of poisoning of ex-GRU officer Sergei Skripal
April 2018	USA	Owners and managers of large Russian businesses	Cooperation with the Government of the Russian Federation
May 2018	USA	Russian defense enterprises	Violation of national legislation on the non-proliferation of weapons of mass destruction
June 2018	USA	Expansion of the sanctions list by IT companies	Communication with Russian intelligence services
July 2018	EU	Companies involved in the construction of the Crimean Bridge	Violation of Ukrainian legislation and international standards

It is worth noting that for most of the reasons for imposing sanctions indicated in the tables, the position of official representatives of the Russian government is fundamentally different. For example, Russian interference in the internal affairs of Ukraine, interference in the US elections, involvement in the poisoning of Sergei Skripal, etc. is categorically denied.

Sanctions are regularly updated, revised and extended, and the sanctions list is expanded quite often. In 2018, sanctions in connection with the Skripal case are expected to expand significantly, and their scope will be significant.

First reaction Russian authorities on sanctions – personal restrictions for a number of persons who pursue anti-Russian policies and support the sanctions imposed against Russia. This was a response to the ban on Russian public figures entering the US, Canada and EU countries.

The next step is the introduction of so-called food counter-sanctions. The import of food products from an extensive list of countries was prohibited European Union. This was done in order to provide an asymmetric response to the sanctions imposed against Russia, as well as to support Russian producers and producers from the countries of the Customs Union (later the EAEU).

A policy of import substitution (primarily in the food production sector) was formed from counter-sanctions. This solution had both its advantages and disadvantages:

Advantages	Flaws
import substitution policies and counter-sanctions have reduced competition in the Russian food market; there are benefits and other incentive methods for Russian farmers; reduced dependence on food imports	at the beginning of the implementation of the import substitution policy, prices increased significantly, including for domestic products; the quality of Russian products still lags behind imported analogues; controversial measures to combat smuggling (destruction of products); “fictitious” import of European products under the guise of Belarusian ones

In addition to the food embargo, other restrictive measures were taken, including the suspension of the agreement with the United States on the disposal of weapons-grade plutonium; Visa restrictions have been introduced for a number of US citizens.

In general, the counter-sanctions introduced by Russia serve not only as retaliatory measures towards the EU countries and the USA, but also imply measures to support the domestic economy.

Consequences of sanctions and counter-sanctions

It is quite difficult to assess the impact of sanctions on the Russian economy - since 2014, the country has shown all signs of a crisis, which is caused by various reasons.

The sanctions are aimed at the oil and gas, financial and defense sectors of the economy and include the freezing of some assets abroad, restriction of access to capital markets, and increased control over Russian goods. At the same time, the economy was extremely negatively affected by the reduction in the price of crude oil by more than half, which caused a strong depreciation of the Russian ruble.

Complete list of all sanctions against Russia

For more than two months, anti-Russian hysteria has been going on in the West, aimed at fooling ordinary people and creating the image of Russia as an external enemy. Especially for you, we have prepared a complete list of sanctions imposed by a number of states, from which it is easy to conclude that, in fact, a serious deterioration in relations is not beneficial to anyone, and belligerent rhetoric is just words for PR for politicians...

In response to Russia's actions in Crimea, the European Union, the United States, Canada and a number of other countries announced the introduction of sanctions. The measures include asset freezes and visa restrictions for designated individuals, as well as bans on companies in sanctioned countries from doing business with designated individuals and entities.

Current sanctions against Russia:

Elena Mizulina was banned from entering the country and more than 10 sanctions were imposed

Stopped the process of creating a free trade zone with the Customs Union of Russia, Belarus and Kazakhstan and 3 more sanctions

Stopped broadcasting of the Rossiya TV channel due to “biased coverage of the situation in Ukraine” and another sanction

Expelled all Russian military personnel from its territory and 7 more sanctions

Limits the period of stay for Russian citizens to a limit of 90 days and 12 more sanctions

Vladimir Putin:

“The deep values of Russians and Europeans are the same. Yes, we are different, but we have the same interests, and I have said more than once that we need to create a single space. And if we do not build a united Europe and engage in separatism, we will occupy an insignificant place in the world.”

Consequences of sanctions against Russia

What sanctions were imposed against Russia in 2014? In response to Russia's actions in Crimea, the European Union, the United States, Canada and a number of other countries announced the introduction of sanctions. The measures include asset freezes and visa restrictions for designated individuals, as well as bans on companies in sanctioned countries from doing business with designated individuals and entities.

Organization for Economic Cooperation and Development By decision of the governing council, it suspended the process of accepting Russia into its membership and announced strengthening cooperation with Ukraine

Organization for Economic Co-operation and Development (abbr. OECD, English Organization for Economic Co-operation and Development, OECD) is an international economic organization of developed countries that recognize the principles of representative democracy and free market economy.

North Atlantic Treaty Organization:

Suspended military and civilian meetings with Russia, and also abandoned plans for joint military missions.
Suspended practical cooperation with Russia and excluded it from the process of eliminating Syrian chemical weapons.
Suspended all forms of cooperation with Russia, except for negotiations at the ambassadorial level and above.
The Parliamentary Assembly of the North Atlantic Treaty Organization has ceased cooperation with the Federal Assembly of the Russian Federation.
Closed free access to the headquarters to all employees of the Russian mission to the North Atlantic Treaty Organization, with the exception of the ambassador, his deputy and two assistants.

North Atlantic Treaty Organization, NATO, North Atlantic Alliance- a military-political bloc uniting most European countries, the USA and Canada. Founded on April 4, 1949 in the USA "to protect Europe from Soviet influence."

European Union:

On March 6, 2014, he suspended negotiations with Russia on visa facilitation and a new basic agreement.
By a decision of the Council of the European Union of March 17, 2014, it introduced sanctions against Russian and Crimean politicians and officials (individuals), in particular: banning them from entering the territory of the European Union or transit, as well as freezing “all funds and economic resources that belong to, are in owned or controlled by these persons."
On March 20, 2014, he canceled the EU-Russia summit scheduled for June of the same year.
On March 21, 2014, “due to the gravity of the situation,” the list of persons against whom sanctions are being imposed was supplemented with 12 names of government and military figures of the Russian Federation and Crimea, as well as the head of the Russia Today agency D. Kiselyov.
On March 25, 2014, it banned its embassies in Russia from issuing all types of visas to residents of Crimea.
On April 17, 2014, the European Parliament adopted a resolution of a recommendatory nature, in which it called for abandoning the construction of the South Stream gas pipeline.
On April 28, 2014, he decided to expand the list of persons against whom sanctions are imposed by 15 people, whose names were published on April 29 of the same year

The European Union (European Union, EU) is an economic and political union of 28 European states. Aimed at regional integration, the Union was legally established by the Maastricht Treaty in 1992 (entering into force on 1 November 1993) on the principles of the European Communities.

Council of Europe canceled all planned events in Russia, deprived the Russian delegation of voting rights and banned its representatives from holding leadership positions in the Parliamentary Assembly of the Council of Europe, and also banned Russian representatives participate in observer missions of the Parliamentary Assembly of the Council of Europe until the end of 2014.

The Council of Europe is an international organization promoting cooperation between all European countries in the field of legal standards, human rights, democratic development, the rule of law and cultural interaction. Founded in 1949, the Council of Europe is Europe's oldest international organization. It consists of 47 states, home to more than 800 million people.

European Organization for the Safety of Air Navigation banned air travel to Crimea as well as flights in the airspace of Crimea.

Eurocontrol is a European organization for the safety of air navigation, founded in 1960. It is an international organization working for a seamless, pan-European air traffic management system. Eurocontrol is a public organization and currently has 40 member states; its headquarters are in Haren, City of Brussels. Eurocontrol coordinates and plans air traffic control for the whole of Europe.

G8 "Big Eight" suspended preparations by leading Western countries for the G8 summit in June in Sochi and suspended Russia's participation.

Group of eight (G8), Big Eight - international club, uniting the governments of Great Britain, Germany, Italy, Canada, Russia, USA, France and Japan.

The same name is given to the informal forum of the leaders of these countries (with the participation of the European Commission), within the framework of which approaches to pressing international problems are coordinated.

Selected countries

Australia:

Canceled a number of government visits to Russia.
It froze the accounts and also banned the entry of eight Russian citizens and four Ukrainian citizens, “who play an important role in the Russian threat to the sovereignty and territorial integrity of Ukraine.”

Albania

Bulgaria dismantled the South Stream pipes on its territory.

United Kingdom suspended military cooperation with Russia, including stopping the supply of military supplies to Russia and canceling planned joint military exercises.

Germany:

Suspended the implementation of a military contract with Russia worth 120 million euros.
Stopped the export of defense products to Russia.
Freezes the sale of satellite technologies worth up to 700 million euros.
She refused to participate in the annual intergovernmental German-Russian consultations within the framework of the St. Petersburg Dialogue.
Stopped exporting military products to Russia.

Iceland joined the European Union sanctions against Russia.

Canada:

Stopped military cooperation with Russia.
She expelled all Russian military personnel from her territory.
Introduced a ban on entry into the country and froze the assets of seven Russian and three Crimean officials.
Introduced sanctions against the open joint-stock company "Joint Stock Bank "Russia"" and added 14 more Russian companies to its sanctions list officials.
She expelled the deputy military attaché of the Russian Embassy from her territory.
Imposed sanctions against the Chairman of the Sevastopol Election Commission Valery Medvedev, the Chairman of the Crimean Election Commission Mikhail Malyshev and the Chernomorneftegaz company.
As the chairing state of the Arctic Council, she refused to participate in its working meetings held in Moscow.
Refused to launch the M3MSat microsatellite using Russian missile from the Baikonur Cosmodrome.
Introduced additional economic sanctions against nine Russian officials, as well as Expobank and RosEnergoBank.

The Canadian list almost completely replicates the US sanctions list.

Latvia:

Suspended military cooperation with Russia.
Stopped broadcasting of the Rossiya TV channel due to “biased coverage of the situation in Ukraine.”

Moldova joined the European Union sanctions against Russia.

Netherlands suspended military cooperation with Russia.

Norway:

Suspended participation in negotiations on the creation of a free trade area between the European Free Trade Association and the Customs Union of Russia, Belarus and Kazakhstan.
Suspended military cooperation with Russia until the end of May 2014.

New Zealand suspended negotiations with the Customs Union of Russia, Belarus and Kazakhstan on the creation of a free trade zone and recalled Trade Minister Tim Groser from Moscow.

Poland:**

Canceled the forum of regions with Russia.
Poczta Polska has stopped delivering letters and parcels intended for residents of Crimea.

United States of America (USA):

On March 4, 2014, investment and military cooperation with Russia was frozen, and bilateral negotiations and conference planning were also cancelled.

On March 17, US President Barack Obama announced the signing of an executive order that imposes sanctions against a number of Russian officials in the form of freezing their bank accounts, seizing property and refusing to issue entry visas. Seven people are listed by name in the decree, but the text also mentions the right of the Secretary of the Treasury to add to the list in consultation with the Secretary of State. The list includes: E.B. Mizulina - chairman of the committee State Duma on family, women and children issues; L.E. Slutsky - Chairman of the State Duma Committee on Affairs of the Commonwealth of Independent States; A.A. Klishas - Chairman of the Federation Council Committee on Constitutional Legislation; V.I. Matvienko - Chairman of the Federation Council; TO. Rogozin - Deputy Chairman of the Government of the Russian Federation; V.Yu. Surkov - Aide to the President of the Russian Federation; S.Yu. Glazyev is an adviser to the president. The American corporation Morgan Stanley noted that the West is in no hurry to impose sanctions against Russia, “as this will significantly worsen the economic situation in Europe.”

On March 20, the list of Russian high-ranking officials against whom sanctions were imposed was expanded, and sanctions were also imposed against Rossiya Bank, called " personal bank senior officials of the Russian Federation" (the personal bank for senior officials of the Russian Federation) and large Russian businessmen who were considered to have business relations with President V.V. Putin (G.N. Timchenko, brothers A.R. and B.R. Rotenberg, Yu.V. Kovalchuk).

On March 27, they suspended cooperation with Russia in the fight against drugs, and also suspended the issuance of licenses to American companies to export “potentially dangerous products” to Russia.
On March 28, licensing for the export of defense goods and services to Russia was stopped.
On March 30, the work of the Russian-American presidential commission was stopped.
On April 2, a number of projects with Russia within the framework of a bilateral presidential commission, as well as some areas of cooperation between law enforcement agencies, were suspended, and funding for their implementation was redirected to Ukraine.
On April 3, consultations with Russia in the region were suspended missile defense, and also suspended cooperation in the space sector with the exception of the International space station and on a number of projects in the field of peaceful nuclear energy.
On April 7, they stopped cooperation with Russia within the framework of the Nunn-Lugar program, and also denied access to Russian citizens to Department of Energy facilities, including Brookhaven National Laboratory and Fermilab.
On April 11, sanctions were introduced against seven representatives of the Crimean leadership and the Chernomorneftegaz company.
On April 28, sanctions were introduced against 7 government officials of the Russian Federation and 17 Russian companies. They also banned the sale of high-tech goods to Russia that could enhance combat effectiveness. Russian army and canceled previously issued licenses for their supply.

The first Russian companies to fall under US sanctions were the Rossiya and Sobinbank banks. Visa and MasterCard plastic cards issued by these banks have ceased to be serviced throughout the world. Subsequently, sanctions were introduced against other companies associated with Vladimir Putin's inner circle: AquaNika LLC, Avia Group LLC, Avia Group Nord LLC, Zest CJSC, InvestCapitalBank, Sobinbank, Sakhatrans, SMP Bank, Stroygazmontazh ", Stroytransgaz, LLC Stroytransgaz, OJSC Stroytransgaz, LLC Stroytransgaz-M, Stroytransgaz Holding, IC Abros, LLC Transoil and Volga Group. Their assets are frozen, and 13 companies from this list From now on, licenses will be needed to export products from the United States “with a presumption of refusal to export, re-export and other foreign transfers.”

Ukraine:

Stopped broadcasting the TV channels Vesti, Rossiya 24, Channel One. World Wide Web", "RTR Planet" and "NTV Mir" on their territory.
Freezes arms supplies and military equipment to Russia.
Limits the period of stay for Russian citizens to 90 days.
Stopped pumping Russian gas into its underground storage facilities.
Joined the European Union sanctions against Russia.
Banned more than 100 officials - Russian citizens who supported the annexation of Crimea to Russia - from entering its territory.
Significantly strengthened border control of those arriving from Russia and Crimea: limited entry for male citizens of the Russian Federation aged 16 to 60 years who travel alone, with the exception of cases of traveling to relatives, to funerals, with certified original invitations from legal entities and individuals or with the permission of the State Border Service itself.
Restricted entry for male Ukrainian citizens with Crimean registration aged 16 to 60 years who are traveling alone, with the exception of cases of traveling to visit relatives with a serious illness, if they have tickets for other planes, tourist vouchers, or based on informing Ukrainian border guards.
Introduced filtration and verification measures for Ukrainian citizens with Crimean female registration aged 20 to 35 years.
The restrictions do not apply to Russians and Crimeans who arrived with families that include children.
The Constitutional Court of Ukraine stopped cooperation with Constitutional Court Russian Federation.
It blocked the flow of water to the Crimean Peninsula through the North Crimean Canal.

France:

Announced its intention to terminate a contract to build warships for Russia and suspended most military cooperation with Russia, including exchanges of visits and joint exercises.

Switzerland:

Stopped the process of creating a free trade zone with the Customs Union of Russia, Belarus and Kazakhstan.
Took note of the sanctions imposed by the European Union and the United States and decided to take all necessary measures to ensure that Swiss territory is not used to circumvent them. She also confirmed that visa restrictions introduced by the European Union apply to its territory in accordance with the Schengen Agreement.
Freezes military cooperation with Russia.
It introduced restrictions on the financial transactions of 33 officials from Russia, against whom the European Union had previously imposed sanctions.
Expanded its sanctions list by another 15 people. Sanctions were imposed against ten citizens of Russia and five representatives of south-eastern Ukraine. Restrictions on financial transactions are introduced against these people, and they are also prohibited from entering Switzerland.

Sweden stopped military cooperation with Russia.

Montenegro joined the European Union sanctions against Russia.

Czech Republic

Česká pošta has stopped delivering letters and parcels intended for residents of Crimea.

Estonia froze assets and property belonging to the mayor of Sevastopol Alexey Chaloy, as well as his companies AS Tavrida Electric Export and Tavrida Electric Holding AG.

Japan:

She stopped negotiations on the liberalization of the visa regime for Russian citizens and suspended negotiations on the signing of agreements on investment, the prevention of dangerous military activities and cooperation in the field of astronautics with Russia.
Canceled and stopped issuing visas to 23 employees of Russian government agencies and other persons

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 what is the real reason for their application 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 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 can be prominent government officials, 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 us 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 services technical support 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, many experts associate the economic crisis in Russia with negative consequences 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, ties, contacts and international relations are collapsing, and it is becoming difficult to resolve important issues of the foreign policy of 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 cannot 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 of 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 of 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 d’état. 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 fall under sanctions against the Russian Federation were influential Russian political and public figures, who, according to US intelligence services, are involved in what is 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 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 EU states, in fact, fully 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 located in European countries that have 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 Russian party’s obligations under the agreement with the United States on the disposition 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 led to 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 to start with Russian government constructive dialogue in order to jointly find a way out of the new crisis brewing in Europe.

A number of EU states directly state that hastily taken decisions were not justified by the real need to apply 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 the state structure, or attempting to force a change in its foreign policy course. 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 notable event that accompanied the entry of Soviet troops into Afghanistan was the boycott of the Olympic Games then held in Moscow by the United States. As a result, American athletes did not participate. US attempts to persuade European countries ignoring 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.

Economic sanctions directed against the Russian Federation have different roots, structure, mechanisms and goals. A distinctive feature of these sanctions is their targeted focus, i.e. restrictions are imposed not on the state as a whole, but on individual residents of the country: commercial structures and individuals.

Reasons for imposing sanctions against Russia

Basic measures

Russian intervention in the situation on the Crimean Peninsula in February - March 2014;

Russian support for the unilateral declaration of independence of the Republic of Crimea;

The entry of the Republic of Crimea into the Russian Federation, which is considered a violation of the territorial integrity of Ukraine;

Failure to comply with the terms of the Geneva Convention of April 17, 2014 Sectoral measures

“Moscow’s support for militias in eastern Ukraine”;

“Not promoting a peaceful resolution of the conflict in eastern Ukraine, and also not facilitating access for international experts to the site of the Malaysian airliner crash.”

The initiator of the introduction of sanctions with the aim of international isolation of Russia was the US leadership, under whose strong pressure, at the risk of suffering huge economic damage, the EU countries joined the sanctions. The sanctions were also supported by the G7 states and some other countries that are partners of the United States and the EU.

In mid-March 2014, after Russia, despite warnings, recognized the results of the Crimean referendum, supported the unilateral declaration of independence of the Republic of Crimea and accepted its proposal to join Russia, the United States and the European Union, Australia, New Zealand and Canada put into effect first package of sanctions. These measures included asset freezes and visa restrictions for designated individuals, as well as a ban on companies in sanctioned countries from doing business with designated individuals and entities. In addition to these restrictions, a curtailment of contacts and cooperation with Russia and Russian organizations in various fields was also undertaken.

Then the expansion of sanctions (April-May) was associated with the aggravation of the situation in eastern Ukraine. The organizers of the sanctions accused Russia of actions aimed at undermining the territorial integrity of Ukraine.

The next set of sanctions was related to the crash of a Boeing 777 in the Donetsk region on July 17, 2014, which, according to the leadership of a number of states, was caused by the actions of rebels supported by Russia.

Thus, the main reason for introducing sanctions was Russia’s actions during the crisis in Ukraine: the West considered that they threatened civil peace and the territorial integrity of Ukraine.

The sanctions lists were expanded more than ten times, with mainly state-owned companies and entire sectors of the Russian economy becoming new defendants. The last time the EU expanded its sanctions lists was on February 16. Five Russian citizens were sanctioned, including singer and deputy Iosif Kobzon, 14 residents of eastern Ukraine and nine militia groups. On February 18, Canada imposed sanctions against Rosneft.

As a result, more than 150 people were sanctioned - officials, businessmen, politicians, military personnel and journalists. Assets have been frozen, transactions and the issuance of long-term loans to the largest banks with state participation: Sberbank, VTB, Vnesheconombank, Gazprombank, Rosselkhozbank and others are prohibited. The supply of equipment and technologies for the development of oil and gas fields to Russia is prohibited, which, in essence, has suspended the modernization of the fuel and energy complex. Private companies have also joined the official bans. For example, ExxonMobil stopped 9 out of 10 projects in Russia.

Companies and scientific institutes associated with the defense industry were sanctioned. US and EU military cooperation with Russia has been suspended, including joint exercises, and restrictions have been imposed on the export and import of weapons and defense products.

In response, President Vladimir Putin banned the import of a number of food products from countries participating in sanctions against Russia.

If you analyze the sectoral structure of sanctions against Russia, you will find that they are directed against the key ones, i.e. competitive sectors of the Russian economy: oil, gas, nuclear and military industries, as well as against Russian banking capital.

Since a huge share of Russia's exports is aimed at the European market, in practice the introduction of sanctions means ousting Russian companies from the European market.

Vectors of imposed sanctions in the oil industry :

· Sanctions against Russian oil companies and their subsidiaries, as well as auxiliary companies in the industry.

· Ban on the export of oil production and refining technologies to Russia.

· Refusal of joint projects in the oil sector and investment in promising projects.

Vectors of imposed sanctions in gas industry:

· Sanctions against Russian gas companies and their subsidiaries, as well as auxiliary companies in the industry.

· Refusal of joint projects in the gas sector and investment in promising projects.

The promotion of large businesses to foreign markets is most often associated with the promotion of bank capital to these markets. Strengthening the position of Russian business in the European market was associated with the expansion of Russian banking capital into the European market, with the aim of supporting Russian export companies and the participation of Russian capital in large international investment projects. The financial reserves accumulated by the Russian Federation allowed Russian state and semi-state banks in the first years after the global financial crisis to begin acquiring foreign banking assets and expanding their branch network abroad. Moreover, many banks in Europe and the world find themselves in difficult financial situation and sold readily.

The locomotives of the Russian banking sector have become semi-state banks - Sberbank of Russia OJSC, VTB OJSC [Vneshtorgbank], Gazprombank OJSC and others.

Sberbank of Russia: To date, it has managed to enter the markets of 20 countries. In addition to Russia, open direct representative offices in Ukraine, Belarus, Kazakhstan, Germany (Munich), China and India. Acquired assets in Switzerland - SLB; Austria - Volksbank International AG, with a branch network in Hungary, Bosnia and Herzegovina, Croatia, Romania, Serbia, Czech Republic, Slovakia, Slovenia, Ukraine; Turkey - Denizbank, with a branch network in Turkey, Russia, Austria, Cyprus. It is the largest commercial bank in Russia and Europe.

Vneshtorgbank [VTB]: The second largest bank in Russia in terms of assets, operates in the financial market of many countries, has representative offices in Ukraine, Belarus, Armenia, Kazakhstan, Azerbaijan, Georgia, Angola, Great Britain, Singapore, UAE, Germany, France, Serbia.

Vnesheconombank: Since 2007, it has been a state corporation whose goal is to provide and attract financial resources for the implementation of large investment projects, support exports and service external public debt. It has representative offices in many countries, participated in the financing of large infrastructure projects (construction of the Ford Sollers plant, reconstruction of Pulkovo Airport, construction of Olympic facilities in Sochi, support for Skolkovo projects and companies, etc.).

Gazprombank: Industry bank, third in Russia in terms of assets. Participates in the financing of large international projects oil and gas industry both within Russia and abroad [Europe, Asia]. In particular, he participates in the projects for the construction of the Blue Stream and Yamal-Europe gas pipelines, and in the development of the European gas transmission system. It also serves companies in the mechanical engineering, chemical, nuclear and other industries. Presented in Russia, Switzerland, Armenia, Belarus, China, India, Mongolia.

Vectors of imposed sanctions in the banking industry :

· Freezing of Russian financial assets of individuals and legal entities.

· Disconnection of Russian banking structures from international payment systems.

· Reduction of client portfolio abroad.

· Restriction of access to investment projects.

· Limitation of access to external borrowings [credits].

· Restriction of financial freedom of Russian companies abroad.

· Other.

Countries that did not support sanctions against Russia [RF]: China, Brazil, India, South Africa.

Thus, all anti-Russian sanctions can be divided into two groups: political and financial-economic.

Russia's response to sanctions

The Russian response was asymmetrical - on August 6, Vladimir Putin signed a decree introducing a food embargo - a ban on the import of milk, meat, fish, vegetables, fruits and nuts from countries that have imposed sanctions against Russia. On August 20, lactose-free milk and dietary supplements, including vitamins and sports nutrition, fish fry and seed material for potatoes.

The media assessed the embargo, on the one hand, as a chance for Russian agricultural producers (the most common promise was to fill store shelves with high-quality and healthy products), on the other hand, as a factor that will lead to higher prices, since, despite investments in the agro-industrial complex, producers cannot sharply increase production to make up for imports (30% pork, 60% milk, etc.). In addition, many publicists “revived” fears of empty shelves and monotony of assortment, forgotten since Soviet times, since sausages, cheeses and various delicacies were banned. Excited citizens were responded with a flood of notes in the federal media about cheese factories in Kostroma, Yakutia and Bryansk - where they mastered the technology of producing cheeses according to Italian recipes. Anecdotes also appeared about Belarusian salmon (in Belarus for many years they have been processing Norwegian salmon, the import of which was banned in Russia) and “black schemes” of food trade, for example, the import of goods into Russia through the countries of the Customs Union.

Let's look at the main retaliatory sanctions.

Sanctions	Status
Entry ban for a number of officials and members of the US Congress, as well as citizens of Canada, the EU, the USA, and Japan	Introduced from March 2014. For Japan from August 2014.
Intensifying efforts to create our own national payment system	On March 27, 2014, President of the Russian Federation Vladimir Putin approved the creation of a national payment system in Russia
Ban on the import of certain types of agricultural products, raw materials and food	Introduced for 1 year from August 6, 2014 by Decree No. 560
Limitation of government purchases of light industry goods from foreign suppliers. These measures apply to all states, with the exception of members of the Customs Union	The decision comes into force on September 1, 2014.
Limitation of government purchases of cars and special equipment assembled abroad.	Introduced on July 14, 2014

August 6, 2014 Prohibition on the import into the Russian Federation of agricultural products, raw materials and food, the country of origin of which is a state that has decided to impose economic sanctions against Russian legal entities and (or) individuals or has joined such a decision:

♦ Meat and food by-products and products;

♦ Fish and seafood;

♦ Milk and dairy products;

♦ Vegetables, edible roots and tubers;

♦ Fruits and nuts;

♦ Finished Products, including cheeses and cottage cheese.

The Russian government excluded from the sanctions list:

♦ lactose-free milk;

♦ salmon and trout fry;

♦ seed potatoes, onions, hybrid sweet corn;

♦ biologically active additives.

Changes for operators of international payment systems (including VISA, Mastercard):

♦ Security contributions to the Central Bank equal to the turnover for two days;

♦ Fines for:

Failure to make a contribution;

Blocking bank cards Russian credit institutions unilaterally.

You can avoid making a contribution in the following cases:

♦ Localization of processing in Russia

♦ Obtaining the status of a nationally significant payment system

"On establishing a ban on the admission of light industrial goods originating from foreign countries for the purpose of procurement to meet federal needs."

The restrictive list includes: fabrics, textiles, ropes, nets, outerwear, workwear, pullovers, cardigans, stockings and socks, underwear, furs, leather, suitcases, shoes and soles.

Bypassing the ban

♦ Possible only in the absence of corresponding production in the countries of the Customs Union.

♦ It is necessary to obtain an opinion from the Ministry of Industry and Trade.

"On establishing a ban on the admission of certain types of mechanical engineering goods originating from foreign countries for the purposes of procurement to meet state and municipal needs"

The ban will affect:

Cars of officials, public transport, as well as municipal and construction equipment.

Participation in tenders

Foreign producers will have to:

♦ open production in Russia

♦ maintain the required level of production localization.

The level of localization will increase over the years. Now it ranges from 30 to 40% for different enterprises, and should reach 60-70% by 2018.

What conclusions can be drawn from the above?

“Much depends on the duration of the sanctions and on new targeted steps by the government to stimulate specific sectors of the economy.

While the situation is uncertain, I think few investors and entrepreneurs will seriously invest in the development of production - they will rather engage in schemes to circumvent restrictions.”

“After the introduction of mutual sanctions, we decided to focus on working with the markets of CIS members, primarily Belarus and Kazakhstan.

The adoption of sanctions has already had a negative impact on Russian economy, since due to the increase in exchange rates, prices for euro- and dollar-dependent products began to rise. Moreover, prices for goods that were traditionally traded in the ruble zone are rising. Negative dynamics are recorded throughout the year: a sharp increase in the cost of raw materials today has reached an unprecedented level of 16%.”