What sanctions US and EU impose against Russia, and Georgia does not

Author

Valery Moiseev

After the Russian armed forces invasion into the territory of Ukraine, a number of countries announced imposing new sets of sanctions against Russia. The United States, the European Union, Great Britain and other states were among them.

US sanctions against Russia

The US-imposed restrictions primarily affected the financial sector. The sanctions were imposed against Sberbank, Otkritie Bank, Sovcombank, Novikombank, and VTB and banks’ subsidiaries.

With the exception of Sberbank, other banks were included in the SDN list that provides for full blocking sanctions. After March 26, all assets of these banks in the US will be frozen.

Sberbank was added to the CAPTA list: within 30 days, all American financial institutions will have to close the correspondent accounts of the Russian bank. At the same time, Sberbank's assets in the US will not be frozen.

Restrictions will also be imposed on other Russian banks and businesses. They will affect providing financing and other transactions with new shares or debt obligations for a period of more than 14 days. The restrictions include: Gazprombank, Rosselkhozbank, Alfa-Bank, Moscow Credit Bank, Gazprom, Gazpromneft, Transneft, Rostelecom, RusHydro, Alorsa, Sovcomflot, and Russian Railways.

In addition, the US will limit the export of technologies. Exporters will be denied licenses to supply products to Russia for the defense, aerospace, and construction industries, including semiconductors, computer and telecommunications equipment, and information security equipment.

Personal sanctions have also been imposed against a number of individuals representing the Russian elite. US President Joe Biden noted that there is a possibility of imposing sanctions against Putin personally.

When asked about the possible disconnection of the Russian banking system from SWIFT, the US President replied that at present there are no such plans, since the economic damage from the imposed sanctions will not be less. However, this measure, according to Biden, will remain on the agenda.

New EU sanctions against Russia

EU sanctions are predominantly aimed at the financial, defense and energy sectors. According to the Chairperson of the European Commission, the measures taken will accelerate inflation and gradually hit the Russian industrial base, and the ban on the export of unique technologies necessary for oil refining will make it impossible for Russia to modernize oil refineries.

EU sanctions also include a ban on the sale of spare parts and other equipment to Russian airlines.

Visa restrictions will affect a number of diplomats and others, as well as Russian businessmen.

In addition, the leaders of the EU countries are preparing a third set of sanctions against Russia that may be imposed if the current situation in Ukraine continues or worsens.

Germany, France, and dissenting opinion of Georgia

Germany is suspending insurance coverage for foreign trade transactions with Russia provided by the export credit agency Euler Hermes, Spokesperson for the German Ministry of Economy reported on February 25. German Finance Minister Christian Lindner stated that business with the Russian Federation had almost been shut down due to the blockade of the Russian banks, only individual transactions are possible.

The French authorities intend to block all accounts of Russians against whom European sanctions were imposed in connection with the situation in Ukraine, the decision will be made in the next few hours. Minister of Economy and Finance Bruno Le Maire reported this on February 25 before an informal meeting of the heads of economic departments of the European Union in Paris started.

At the same time, the Georgian authorities,proceeding from national interests, are not going to participate in the economic and financial sanctions of Western countries imposed against Russia because of the aggression in Ukraine. Georgian Prime Minister Irakli Garibashvili stated this on February 25.

Recall that on February 24 at 04:50 Russian President Vladimir Putin actually declared war on Ukraine, and Russian troops began to invade the territory of Ukraine.

Since then, has been following the situation and regularly informs about the most important events.