On 22 February 2022, both the EU and the US announced certain sanctions against Russia following the announcement by Putin of the decision to recognise the so-called Donetsk and Luhansk People's Republics as independent states. Both the EU and the US leaders were clear that such sanctions were merely a first step, and that further sanctions would be issued if the situation escalates. A brief outline of the sanctions currently imposed on follows further below.
The scope of the next level of sanctions is not yet announced, neither from the US nor the EU. President Biden has during the night communicated that he will impose the "full scale" of sanctions against Russia. No official statement on what this involves has been issued, however, it is believed to cover the following:
- target Russia's two largest banks, Sberbank of Russia (SBER) and VTB, as well as other financial firms
- export controls to be expanded to cut off Russian access to critical Western technology for all economic sectors in Russia
- additional members of Putin's inner circle and their families to be added to the list of restricted people
In addition, there are reported discussions on banning Russia from the international payments infrastructure, SWIFT, although this is controversial.
Biden is expected to announce the scope of the new sanctions today, Thursday.
From The EU we are aware that an emergency meeting in the European Council to discuss the situation in Ukraine was already planned for Thursday and we expect further sanctions to be discussed today.
Schjødt is monitoring the situation closely, and our sanctions team has considerable experience with assisting with all matters related to the sanctions against Russia.