EconomyPolitics How do sanctions against Russia work, and what new restrictions are being prepared for the aggressor? Monday, November 25, 2024

Moscow allocated $7B to purchase microelectronics for the military-industrial complex but was not able to complete the purchase due to sanctions, said the Presidential Commissioner for Sanctions Policy. Chinese banks have also begun to refuse payments related to the Russian military-industrial complex for fear of falling under secondary sanctions. The US Treasury Department announced a new sanctions package, including restrictions against Gazprombank and six foreign subsidiaries, more than 50 international Russian banks, and more than 40 securities registrars. As noted by the head of the NBU, Andriy Pyshny, almost all of the largest Russian banks have lost access to the global financial system, and some have already stopped currency settlements. New US sanctions may eliminate the only way for European consumers to pay for energy resources from Russia. Hungary and Slovakia, which have long-term contracts with Gazprom, called the new restrictions “a threat to the energy security of Central European countries.” Meanwhile, the EU is working on its 15th package of sanctions, including measures against the Russian shadow fleet.