Home World European Union’s New Sanctions To “Cripple” Putin Amid Ukraine Invasion

European Union’s New Sanctions To “Cripple” Putin Amid Ukraine Invasion

The allies additionally agreed to additional restrictions on Russian oligarchs amid invasion of Ukraine

European Commission chief Ursula von der Leyen on Saturday mentioned that Brussels would suggest to freeze the belongings of the Russian central financial institution, in a significant escalation of sanctions towards Moscow following the invasion of Ukraine.

Von der Leyen additionally mentioned the EU would take away “certain” Russian banks from the SWIFT cost system, in response to a key demand of Kyiv to punish Russian President Vladimir Putin.

These new measures will “cripple Putin’s ability to finance his war machine,” Von der Leyen mentioned.

She was talking after a videoconference with the leaders of the United States, Germany, France, Italy and Canada meant to coordinate the West’s response to the invasion.

The allies additionally agreed to additional restrictions on Russian oligarchs, together with measures “to limit the sale of citizenship — so-called golden passports — that let wealthy Russians connected to the Russian government become citizens of our countries”.

Von der Leyen mentioned she would make the proposals to EU leaders, who may request amendments to minimise the impact of the measures on their economies.

The new wave of sanctions was a unprecedented leap ahead in only a few days that was made doable by a sudden reversal by Germany on its opposition to proscribing Russia from SWIFT.

SWIFT’s messaging system permits banks to speak quickly and securely about transactions, and chopping Russia off would cripple its commerce with a lot of the world.

Italy, Hungary and Cyprus had been additionally against the SWIFT ban, however have come round to the thought within the face of worldwide outrage towards Russia’s invasion of its neighbour.

In an obvious concession to Berlin, the powers agreed that the ban would solely apply to chose banks with the intention to keep away from the measure backfiring too harshly on European companies.

In most likely essentially the most surprising new measure towards Putin, the powers agreed to restrict the Russian central financial institution’s potential to entry its huge international reserves.

These are estimated to be over $600 billion and are the huge windfall of Russia’s immense vitality wealth.

“This will freeze its transactions. And it will make it impossible for the Central Bank to liquidate its assets,” Von der Leyen mentioned.

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