US sanctions on Russia Explained: How United States' new sanctions against Russia works?

President Joe Biden on Tuesday, February 22, announced that US is sanctioning two of Russia’s largest banks, cutting it off from getting loans from West and imposing sanctions on Russia’s elites and ir families. In response to Russia's decision to recognize two breakaway regions in eastern Ukraine as independent and ordered its army to launch a “peacekeeping operation” into area, Biden announced first round of new sanctions against Moscow, ding to Western efforts to stop full-scale invasion of Ukraine. Sanctions are being applied to VTB Bank and Russia's military banks. 

Earlier, Germany put a brake on a big gas pipeline from Russia and British also hit Russian banks with sanctions. 

What are sanctions?

Sanctions are an economic or financial alternative to using military force that is enforced by a country against anor to compel to do or not do something. This could include tre embargoes; restrictions on particular exports or imports; denial of foreign assistance, loans, and investments; blocking of foreign assets under U.S. jurisdiction; and prohibition on economic transactions that involve U.S. citizens or businesses, according to Congress Research service. 

Sanctions can impact heavily on population of receiving countries where people become agitated enough to demand change from ir governments.

US sanctions on Russia timeline

President Biden has alrey issued an order prohibiting investment in and financing to separatist regions as US plans to target relationships between certain Russian and American banks, according to Reuters.

It’s similar to when Russia annexed region of Crimea from Ukraine, n-President Barack Obama in 2014, first limited tre and business to region. Later, Russian defence companies, six of country’s largest banks, and inner circle of Russian President Vlimir Putin were targetted. 

Russia's response to sanctions

As per Reuters report, Russian Foreign Minister Sergei Lavrov brushed off threat of sanctions and said, "We're used to it. We know that sanctions will be imposed anyway, in any case. With or without reason."

Maria Shagina, an international sanctions expert based in Helsinki, quoted in Washington Post stated that Vlimir Putin does not seem threatened by Biden’s strategy of a slow escalation of sanctions. She suggested Biden ministration shift red lines to imposing tough sanctions as it would be late after full invasion of Ukraine. 

Russia to inve Ukraine?

If conflict intensifies, re is a risk of furr deterioration of US-Russia relations and if Russia expands its presence in Ukraine or into NATO countries, re will be greater escalation. Russia’s actions have raised wider concerns about its intentions elsewhere in Eastern Europe, and a Russian incursion into a NATO country would solicit a response from United States as a NATO ally.

conflict has heightened tensions in Russia's relations with both United States and Europe, complicating prospects for cooperation elsewhere including on issues of terrorism, arms control, and a political solution in Syria.

(Image: AP)