US President Joe Biden has unleashed the strictest sanctions any country has ever faced. He and his European counterparts came up with a plan of action to cripple the Russian economy to dust.
The new set of sanctions will bring the financial institutions down by 80%, by excluding Russian banks from global markets, by taking away access to the US dollar, by denying any US technology crucial to aerospace, maritime and defense industries.
European leaders met in an emergency meeting in Brussels on Thursday evening. They have come up with one of the strictest sanctions any country has ever faced. These sanctions are to cripple the Russian economy in no time.
On Thursday Russian stock markets saw a 30% hit and soon will crash with the strict sanctions that follow. Putin will turn into an outcast as Russia will be barred from international markets.
The United States will also halt 13 prominent Russian companies, which includes Gazprom, a state-run energy conglomerate to raise capital in western markets. Biden has also decided to penalize families who are close to Putin.
Analysts predict that these sanctions will outrightly cripple the Russian economy on a short-term basis and in the long run, it will be managed somehow, however, the restriction of access to US technology will cripple the industries like Maritime, Defense and Aerospace.
EU has declared complete restrictions to access huge bank deposits and several technological exports to Putin’s Russia; the list also includes semiconductors, lasers, communications equipment and computers. Australia along with japan also unleashed stricter sanctions.
As of now the United States and European officials will not completely restrict Russian banks to access SWIFT, This Belgian money transfer system is a protocol followed by 11,000 banks globally. However, Biden’s administrative official said it could be considered later.
Biden says for now these sanctions are enough to cripple Putin, and no further restrictions will be awarded to Russia, as its economy depends on energy exports. And Global leaders do not want the oil and gas prices to rise as European countries depend on these products. Although, this week Germany stopped the Nord Stream 2 gas pipeline project.