SWIFT disconnected from Russia: World leaders sanction the Ruble exchange along with semiconductors
With the start of the invasion in Ukraine by Russia, land, air, and naval forces are trying to get a hold of Ukraine. Russia is going against Ukraine and the whole European Union, the UK, and every other country. Since Russian President Valdemar Putin declared a full-on invasion, going against the vows of global leaders, the government may face severe sanctions. The sanction has both immediate and long-term effects on Russia and may cripple the economy.
Russia and Ukraine are the two biggest global wheat suppliers, accounting for a quarter of global exports, are now at risk. Even though 30 to 40 per cent of gas supplied in Europe comes from Russia, the sanction will have drastic effects. Russian top export is crude petroleum making up $123 billion of global revenue and redefined petroleum of $66.2 billion.
Petroleum gas and coal briquettes make up $26.3 billion and $17.6 billion, respectively. $8.14 billion wheat export is another source of the country's primary export revenue. That will fall into risk as gas prices increase due to the invasion.
As we've cleared what Russia gives out to the rest of the world, now let's focus on the main point. The Russian invasion of Ukraine in 2022 is not a good thing, and experts think it may be the starting point of WW3.
A sanction took place among global leaders, where American President Joe Biden held a meeting. The meeting took place early as the Russian authority failed to comply and take back their troops from the Ukrainian border.
Russia is one of the biggest importers of cars, with an 11-billion dollar industry and packaged medicaments making up $10.2 billion. Broadcasting equipment, planes, helicopters, and spacecraft import is $6.75 billion, $8.21 billion, and $6.71 billion, respectively.
US, EU, UK, Japan, Taiwan, Canada, New Zealand formed a sanction against Russia that targets banks, military exports, oil refiners, and semiconductors.
Russian forces are surrounding the capital Kyiv, and President Volodymyr Zelenskyy asked the international community's help. Even though Biden said they would not be sending any troops to Ukraine to fight, their economic barrier against Russia is a long-term retaliation.
Deep politics are going on when we think of why all these are happening. According to OEC, in 2021 November, Russia exported about $39 billion and imported $26 billion. It resulted in a positive trade balance of $13 billion.
Between 2020 and 2021, a steady increase of 30 per cent was seen in the trade chart. As most significant semiconductors are designed in the US, assembled in China, and many other places, Russia will not be receiving any more products. Biden said anything with "an American" seal is be prohibited from Russia in one of many press conferences.
Boris Johnson said they will introduce sanctions against Russia's President Vladimir Putin and Foreign Minister Sergey Lavrov "imminently." There were warnings all over the news to stop this nonsense of war in the modern world. But ignoring all that, the Russian troops are moving forward with the invasion plan. It has provoked condemnation from countries in the West with retaliatory sanctions.
President Johnson had a meeting with NATO leaders where he said: "catastrophe was engulfing Ukraine." He warned allies that the Russian President might not stop after attacking Ukraine as his ambitions are too high. Mr Johnson confirmed his alliance with NATO and is ready to strike at moment's notice.
Since Ukraine wanted to be a part of NATO and Russia did not like to share borders with Western counterparts, a raged-up battle is fuelling up. The Ukrainian President asks for help from powerful countries, but sanctions are the first one everyone seems interested in. Because this conflict may lead to a more devastating outcome, everyone keeps their fingers crossed for the day not to come and poses sanctions.
The removal of the international banking system backbone SWIFT, to "inflict maximum pain on President Putin and his regime." Assets are frozen on central banks containing money from wealthy individuals, companies, and organisations.
President Biden also warned Russia that if they commit a cyber-attack on the US as part of the ongoings, more complex moves will pass at court instantly. Also, the semiconductor ban on Russia may hurt its growth of technology, especially the artificial intelligence (AI) sector. As we are talking, Rubble is at its all-time low in four years, and billions are lost as stock prices fall record high.
We've seen the SWIFT ban and US "seal" ban is demonetising Russian YouTube channels. A time frame is given for the Russian online workforce to withdraw earnings, as they will no longer be working on the global marketplaces as part of the sanction.