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What Are Sanctions: The Best Definition

What are sanctions - Image from pixabay by geralt

Sanctions are the punishments given to a country due to its inability to comply with its laws, orders, and rules. They enhance behavior change in irresponsible individuals who commit these conflicts and help fulfill comprehensive peace and security.

Some countries that practice this act include; North Korea, Syria, and Russia-Belarus. Russia, the most common country, happened on the 19th of December 2014. This is after the former U.S President, Barack Obama, imposed sanctions on Russia, hence forbidding the export of U.S goods and services to the country.

Types of Sanctions.

There are different types of sanctions that may be imposed, this includes;

  • Economic: when a country pulls back the normal trade customs and financial relations but affects the common citizen. 
  • Military: relates to the army or navy of another state.
  • Sport:  is used to destroy the general population morale of a given state.
  • Diplomatic: measures are taken in politics to express pain about politics.
What Are Sanctions - image from pixabay by falco
What Are Sanctions - image from pixabay by falco

Imposing sanctions on Russia.

Russia has been majorly affected economically; this includes factors such as trade. It is said to have failed to comply with debt payment for the first time and thus invaded Ukraine, hence major announcements that have limited its ability to compensate for the war.

Russia is known to have money for payments but has been unable to pay due to sanctions, and thus different financial measures have been undertaken. The major sanctions against Russia include; aviation, export, banking, and fossil fuels.

All Russian central bank assets have been frozen to stop it from using its billions of reserves in foreign currencies. The Russian government was removed from Swift, an artery that allows for the smooth and fast transfer of money globally.

This meant a slower means of transaction for Russia. This disrupted disbursement of money for its exports and energy. However, Swift claims that all decisions on imposition are fully the government's responsibility.

The Russian government was forced to create an alternative system for swift and thus created; [System for Transfer of Financial messages]. But, unfortunately, very few foreign countries used the means and thus led to losses to the government. Russia was also restricted from all sporting activities due to the Ukraine invasion.

The international sports governing bodies for hockey, soccer, and basketball called out all teams of Russia from participating in sports competitions with the president, Vladimir Putin, in the woke. As a result, many sporting activities have occurred without Russian players' participation.

Some restrictions were also put forth in that the export requirements for a license have changed for certain goods in that there is a ban on the exportation of dual-use items. This is because these items can be used for military and civil purposes like parts of a vehicle by foreign countries.

Many companies also avoid working together with Russia, thus including one of the biggest companies like; Coca-Cola, Shell, KFC, and BP.

The U.S treasury forbids Russia from making more debt disburses with funds subjects to the jurisdiction of the U.S. Russia was accused of using gas as a political weapon after it stopped its natural gas supply to Europe when it closed a turbine down on the North Stream 1 for fear of inadequate or any shortages. This move was taken to prove that Russia is still an energy superpower, and thus it could easily go against Europe when need be.

After the outbreak of war, countries like Germany were trying to find other energy sources, brought about by the partial shutoff of gas deliveries. The European economy had many difficulties to face and thus caused the gas to be sold at a very high price globally.

Ways In Which Russia Has Been Affected.

  • Russia's economy reduced by 10% this year (2022).
  • The number of imported products is also noted to have reduced, as some items are missing from the supermarkets in Moscow.
  • Payments for oil and gas exports to Russia will be delayed because major banks have been removed from the financial messaging swift system as it limits the smooth running of money and ensures they lose bonds with other countries, destroying their ability to operate globally. Removing the swift system also reduces the Russian government's abnormal extra costs on goods and transactions.
  • Inflation affects even the local citizen.
  • There is a decline in the production of oil.
  • The transport sector has suffered major losses, especially air transport. This has been caused by the unpreceded bans on civil aviation in Russia; hence most of their contracts have been terminated by the foreign lessors, and thus their planes are not receiving the maintenance needed from their western manufacturers. Regarding transport, the EU airspace, ships, and freight operations were also closed down.
  • The automobile company has also been greatly affected as Russia has not been able to produce more cars, not unless it's through foreign components and brands.
  • Importation of coal was prohibited, including other products such as steel, spirits, and seafood, thus affecting the maritime industry.
  • Many international companies have also stopped trading in Russia, and thus it is wise to say the Russian economy is crippled.

How Do The Sanctions Affect The Russian Population?

  1. For most people, there was a massive reduction in income, which prompted the government to stop publishing real monthly income data after being invaded by Ukraine.
  2. Most people put their money on their basic needs and stopped spending on recreational activities, eating out, cosmetics and beau treatments, and leisure to focus on food, shelter, and education due to the high cost of living in the region.
  3. Reduced incomes in most employees in different firms, while others lost their jobs. Many people fear that they may lose employment, thus increasing the dependency ratio that society is striving to escape.
  4. The standards of living significantly reduced, and this is due to a reduction in the circulation of payments.
  5. Inflation; there is an increase in the prices of the basic consumer bucket: clothes, medicine, and furniture. Thus, the economy is in a terrible state, and the ones majorly affected are those who receive low incomes. Motorists are also struggling with the increasing fuel prices as the energy and fuel bills.
  6. Shortage of many consumers' basic commodities as the state has to manage all its activities that relate to the economy.
  7. There were also sanctions to target individuals; for example, Russian government officials, such as President Putin's assets, were frozen in the U.K, Canada, and the U.S.
What Are Sanctions - image from pixabay by Victoria_Art
What Are Sanctions - image from pixabay by Victoria_Art

Aftermath 

It followed up so unexpectedly that Russia banned the exportation of over 200 products. These include; vehicles, timber, electrical equipment, and agricultural products hence the blockage of interest payments to foreign investors with bonds with the government.

Wartime laws have been introduced; this includes laws such as the labor providers will have to work weekends and at night without any leave. The government is also forced to provide goods to the military at the request of the Russian government.

Russia has also ceased foreign investors with billions of dollars from selling Russian investments. 

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