Sanctions on Russia have grown heavier and heavier as the country has continued its relentless and unprovoked attack on Ukraine and its civilians. Even with heavy military casualties and economic struggles, Russia pushes onward. Besides aiding and supplying Ukraine the U.S has made efforts to sanction Russia and punish them for its actions. So far, the sanctions have been applied to Russia’s largest financial institutions. More specifically, the sanctions have included the imposition of full blocking of payable accounts, as well as debt and equity restrictions on institutions holding nearly 80% of Russian banking sector assets. One example is Abramovich, a Russian Billionaire and Oligarch feeling the pressure of governments from all over the world. Even the British government blocked him from entering the country and froze assets like his 15-bedroom mansion in central London and his penthouse overlooking the river Thames.
So why target these billionaires? Well, much of their power stems from their political support of Vladimir Putin. Indeed, political, and economic power are closely tied in Russia as well as most countries. The relationship between the President and those are symbiotic in which the oligarchs’ economic power reinforces the political power of Putin while the political power of Putin reinforces the economic power of the oligarchs. More recently sanctions have increased with around 400 Russian individuals and entities, including more than 300 lawmakers from the lower house of the Russian parliament, and more Russian elites. What do you think about the sanctions? And do you think they could affect the global economy at large?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.