List of Global Sanctions Against Russia, the Impact on the Russian Economy, and Companies Fleeing the Country

Russian President Vladimir Putin gives a speech during a ceremony formally annexing four regions of Ukraine Russian troops occupy, at the Kremlin in Moscow, on Sept. 30, 2022. Grigory Sysoyev/Sputnik /AFP via Getty Images

After Russia invaded Ukraine in late February, the Western world united to impose sanctions against Moscow in a bid to punish the country and force the government to pull back its forces. These sanctions have affected the Russian economy, with the country seeing a drop in imports and exports, as well as international firms shutting down operations.

What Are the Sanctions Being Put on Russia?

Sanctions are aggressive regulations imposed on a country or region in condemnation of a provocative or belligerent action that goes against established norms in the domestic or international theater. The modern interdependence of economies and democratic systems of governance has made implementing sanctions an effective restraining measure.

The most effective sanctions against Russia have been imposed by two of its biggest trading partners—the United States and the European Union. China was the top importer of Russian products in 2021.

However, the slew of punitive sanctions imposed by Western powers include cutting off the Russian central bank from $600 billion in global reserves; prohibiting all transactions with the monetary authority; restricting Russian institutions from access to SWIFT, thereby disabling global financial transactions; withdrawing Russian access to the U.S. dollar; and freezing $400 billion of Russian reserves. Further, the widespread cessation of business operations across the country have placed a tremendous pressure on the Russian public as well as private companies, essentially turning the country into an international outcast.

Growing panic could lead into mass withdrawals from the banking system, which would result in withdrawal restrictions, according to analysts.

Some of the biggest blows came when oil companies like BP, Shell, Equinor, ExxonMobil, and TotalEnergies divested from the country and halted all new projects.

In addition, the majority of Russia’s aircraft fleet is composed of passenger jets from Western countries. Airlines in the country have resorted to stripping apart jetliners for spare parts which they can no longer procure from international markets due to prevailing Russia sanctions.

The scarcity of essential parts and dearth of regular maintenance could mean the collapse of the country’s aviation sector once airlines are finished with cannibalizing components. Procuring supplies from other countries is extremely difficult because of the fear of secondary sanctions. Companies like Boeing and Airbus monitor all product sales to end users.

Foreign direct investment in Russia during the years 2019–20 was led by Germany with 82 greenfield projects—when companies build brand-new offshore facilities—followed by the United States with 62 projects, China with 55, France with 49, and Japan with 26. All foreign investments have come to an effective halt for the foreseeable future.

List of Global Sanctions Against Russia, Its Impact on Russian Economy and Companies Fleeing the Country Shutterstock

List of Sanctions Against Russia 2022

United States

The United States sanctioned banks like Sberbank, VTB Bank, Sovcombank, Novikombank, as well as their subsidiaries. U.S. assets of these banks have been frozen, and Americans have been barred from dealing with them. Debt and equity restrictions have been placed on multiple Russian banks. All transactions with the Central Bank of the Russian Federation have been blocked.

Individuals like Russian President Vladimir Putin, Minister of Foreign Affairs Sergei Lavrov, as well as other Russian oligarchs, national security leaders, and elites like Alisher Usmanov who have significant stakes in companies in the IT and telecom sectors have been sanctioned.

The United States has banned the import of Russian oil, gas, and other forms of energy, while sanctioning Russia’s defense industry, including companies like state-backed entity Rostec. Visa restrictions have been imposed on more than 500 military-affiliated individuals.

The Russian tech sector was brought under sanctions, affecting supercomputer company T-platforms and Mikron, the country’s largest chipmaker. U.S. properties and interests of PJSC Alrosa-Nyurba, Russia’s state-owned diamond company, have been frozen. Russian state-owned or controlled TV networks like Russia-1, JSC NTV Broadcasting Co, and JSC Channel One Russia have been sanctioned.

United Kingdom

The United Kingdom has sanctioned Russia-affiliated banks like Black Sea Development and Reconstruction Bank, Bank Rossiya, Industrial Savings Bank, Genbank, Promsvyazbank, VTB Bank, and Sberbank.

The UK has prohibited export of critical-industry technology to Russia, and banned Russian space and aviation firms from insuring or reinsuring their risks. License of state-controlled media outlet RT to broadcast in the United Kingdom has been revoked with further Russia sanctions placed on the media industry.

Key Russian entities like defense contractor JSC Kronshtadt Group, Russian Railways, and the Internet Research Agency have been sanctioned. The UK has banned import of Russian iron and steel products as well as imposed new import tariffs on palladium and platinum.

The export of services like public relations, management consultancy, and accountancy, along with products like chemicals, plastics, and machinery are banned. The UK has also sanctioned Russian oligarchs and hundreds of other individuals, including Putin and his family members, as well as Russian officials involved in the annexation referendum held in Ukraine.

Japan

Japan, one the major trading partners, has imposed multiple sanctions on Russia, starting with restricting export of controlled items listed on the internationally agreed list.

Japan prohibited bond issuances by designated Russian banks and barred issuances and transactions of new Russian sovereign debt on Japanese markets. Imports and exports from disputed Ukrainian territories of Donetsk and Luhansk have been halted.

There were asset freezes of prominent Russian nationals, including Putin and key governmental figures. Japan imposed trade restrictions on Russian ally Belarus, and stopped supplying petroleum refinery equipment to the Russian Federation.

Export of luxury goods from Japan to Russia was stopped in March, followed by high-tech goods, critical industrial equipment, and at the end of September banned all export of goods related to chemical weapons.

Australia

With the invasion of Ukraine, Australia initiated sanctions inline with other Western nations, and started with asset freezes and travel bans of prominent Russian individuals. Assets of Tactical Missiles Corporation, Kronshtadt, Rostec, and Rosoboronexport were frozen by the Australian government.

Australia prohibited the export of aluminum ores and concentrates, artificial corundum, other aluminum oxide, and aluminum hydroxide from March, and certain luxury goods from April, including wine, high-value cosmetics, parts for luxury vehicles, tobacco, and other goods.

Australia sanctioned Belarus officials, including the president and his family. Defense, transportation, shipping, and electronic component companies like Kamaz, United Shipbuilding, Russian Railways, Gazprom, RusHydro and SOGAZ were sanctioned, following which, oil, petroleum, coal, and gas were designated as “import sanctioned goods.”

List of Global Sanctions Against Russia, Its Impact on the Russian Economy, and Companies Fleeing the Country Shutterstock

How Many Countries Have Sanctions Against Russia?

More than 30 countries around the world have imposed stringent sanctions and other restrictive measures against Russia following its incursion into Ukraine. These include the United States, Australia, Canada, France, Germany, Italy, Greece, Japan, South Korea, Netherlands, Singapore, Switzerland, and the United Kingdom.

Among these, the sanctions by the European Union (EU) are said to be some of the most effective on the Russian economy.

The EU has imposed individual sanctions and asset freezes on the Russian president and oligarchs, such as Roman Abramovich, Duma parliament members, military staff, and other key personnel.

Under financial restrictions, the EU has applied a SWIFT ban for 10 Russian banks, halted all transactions with the country’s central bank, and curbed Russian access to European markets.

The EU closed its airspace and seaports to all Russian aircraft and vessels, banned road transportation, and exports in related sectors. The bloc has imposed a ban on coal and oil, and applied price caps to Russian energy. In the defense sector, guns, vehicular and ammunition exports to Russia have been stopped.

An import ban was placed on steel, iron, wood, cement, paper, and plastic products, along with seafood, cigarettes, cosmetics and jewelry. European companies are also barred from employing Russian architectural, engineering, IT consultancy and legal advisory services.

Following the war, the EU has also imposed sanctions on Belarus for supporting the Russian military, and Iran for equipping Russian forces with drones.

In October, the EU formalized its eighth sanctions package on Russia. Besides expanding on earlier restrictions, the latest round includes a ban on EU citizens sitting on board of Russian state companies. The eight round also added a price cap on maritime transport to countries purchasing Russian crude oil.

Has Canada Imposed Sanctions on Russia?

Partnering with international allies, Canada has enacted restrictions on more than 1,400 Russian individuals and entities since February.

Moreover, Canada has provided more than $450 million in military support to Ukraine. This includes artillery and ammunition, armored vehicles, clothing, and drone cameras, besides providing military training of more than 34,000 Ukrainian soldiers and security personnel.

So far this year, Canada has given $2.56 billion in assistance to Ukraine. Canada has banned the export of 28 services vital for the operation of the oil, gas, and chemical industries, including technical, management, accounting, and advertising services.

Moreover, the country has banned the exportation of oil, gas, and chemical services targeting an industry that accounts for about half of total Russia’s federal budget revenues.

Effect of Sanctions on Russian Economy

Following the international response and economic warfare waged by the West on Russia, the country’s economy is expected to drop anywhere between 5.5 percent and 9.0 percent in 2022, according to analysis by the World Bank and International Monetary Fund.

Russian trade in goods and services will decline significantly this year without the support of global companies and will face a shortage of critical components. Meanwhile, inflation in the country is estimated to reach 22 percent.

Global boycott of Russia has resulted in the main index of the Moscow Exchange, the MOEX Russia Index, dropping one-third during the period February–October 2022.

Russia’s ability to replace weapons and recuperate its war efforts through producing and stockpiling weapons have been severely affected after banning the country’s access to advanced technology.

Some of the Russian forces have reportedly turned to Iran and even North Korea to make up for shortages of supplies and equipment. Further, Russia is struggling to import semiconductors and other key components

The exact impact on the Russian economy cannot be calculated because Moscow blocks public access to its economic statistics. So far, Russia has managed to finance its war in Ukraine, but it is likely to change in the near future.

Which Companies Are Not Doing Business With Russia?

According to Yale University, more than 1,200 companies have publicly announced reducing their operations in Russia since the onset of the war. The curtailing of activities vary among different establishments, with some completely withdrawing from the country while others are doing the bare minimum as required under international sanctions on Russia.

Some of the notable companies that have halted Russian engagements or completely exited Russia include: Cisco, Cummins, Deloitte, Delta Air Lines, edX, Electronic Arts, Etsy, Expedia, Exxon, Global Foundries, GoDaddy, Halliburton, Hearst Communications, HP, IBM, Koch Industries, KPMG, Krispy Kreme, McDonald’s, MSCI, Nasdaq, Netflix, Nike, Omnicom Media, PwC, Red Hat, S&P 500, Slack, Starbucks, Uber, WeWork, Women’s Tennis Association, World Athletics Council, and World Boxing Organization.

Some of the companies suspending operations include: 3M, Airbnb, Amazon, AMD, American Airlines, American Express, Apple, Boeing, Booking, Citi, Costco, Dell, Disney, eBay, FedEx, GM, Goodyear, Harley Davidson, Intuit, Intel, Marriott, Mastercard, Meta, Nvidia, Oracle, Paypal, TikTok, Under Armour, United Airlines, WarnerMedia, WWE, and Xerox.

Companies defying sanctions and continuing business in Russia include: Cloudflare, Forever Living Products, IQVIA, Patreon, Quicksilver, Riot Games, TGI Friday’s, Tom Ford, Tupperware, and Zimmer Biomet.