Russian economy feels impact of sanctions as measures increase after Ukraine invasion
Thursday, the The White House announced new penaltiestargeting Russian government officials and oligarchs, which prohibits them from traveling to the United States and exposes their assets to seizure.
“On the oligarchs in particular, there is a debate about what they control. Who controls who. Is it the oligarchs controlling Putin or Putin controlling the oligarchs? But I think controlling their assets is a big part of that,” Mark Nance said. , associate professor of political science at NC State, who is director of the master’s program in international studies at NC State’s School of Public and International Affairs.
While Thursday’s measures were more targeted, other measures had a broader and more general effect in Russia.
“Chaos, I really think. The ruble had the biggest single day drop ever, it fell to historic lows. We saw the stock market shut down for a few days. We saw interest rates double in one day from 9.5% to 20%,” Nance said.
“By cutting off the Central Bank and not allowing them access to reserves in the United States and elsewhere, it really starts to pile on the economy pretty quickly and take a stranglehold on it. There’s no so really no money to even pay for the basics,” Nance explained.
These measures were intended to put pressure on the Kremlin by limiting its ability to act.
“This targeting of the Central Bank and (cutting ties with SWIFT) is unprecedented. This is a signal to me that the Allies are very serious about this. And yes, the objective is to counterbalance the regime’s strategy, to find ways to insulate themselves from sanctions so they anticipate that to have an effect and I think the ultimate goal is for the war to drag on you are not in a position to physically pay for the war let alone the lights on at home,” Nance said.
As the fighting escalated, international reactions from private companies, sports governing bodies and cultural institutions also intensified. Formula 1 terminated his contract with the Russian Grand Prix, FIFA banned Russia 2022 World Cup participation team, and Russian and Belarusian athletes were expelled from the Paralympic Games; Belarus helps Russia invade Ukraine.
Private companies such as Disney (the parent company of ABC11), Apple, Spotify, H&M, Ikea, Shell, BP and others have announced plans to close offices or suspend operations in Russia in response to the violence .
In addition to these measures, several rallies were held in the United States and other countries, expressing their solidarity with Ukraine. On Thursday afternoon, UNC students, faculty and Ukrainians gathered on campus to raise funds and show their support.
“I started crying. I started calling my relatives because I am an international student here, that means my whole family is back in Ukraine. And I spent 18 years of my life in Ukraine. All my relatives are there. And I started calling them, talking to them, texting them. I was crushed for several days. I couldn’t sleep, I couldn’t eat, I couldn’t couldn’t go to my classes, I couldn’t do my job,” said Anna Tyshkoets, a freshman at UNC from Ukraine.
Thursday’s gathering, organized by the UNC Center for Slavic, Eurasian, and East European Studies and the UNC Center for European Studies, took place at Polk Place.
“I worry about my parents, for sure. My father is serving in the Ukrainian Armed Forces, and he is currently on the front lines defending our country and defending my family and all other Ukrainian families. So yes, I am just very worried about them,” Tyshkoets said.
At 6 p.m. Thursday, Ukrainians in the Carolinas will hold a coordination meeting at North Raleigh Church of Christ (8701 Falls of Neuse Road) to raise funds to purchase and send medical and military supplies to Ukraine.
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