- The US, UK, EU, Japan, Australia, and others have hit Russia with sanctions over its attacks on Ukraine.
- Some argue the financial sanctions might not be effective in persuading Russia to pull back from Ukraine.
- Here's a list of countries that have imposed sanctions on Russian banks and individuals.
World leaders are considering stepping up sanctions against Russia after its troops invaded Ukraine early Thursday.
Russian forces attacked Ukraine moments after President Vladimir Putin announced he had decided to launch a "special military action" against the country.
Explosions were heard in the capital, Kyiv, and in the eastern city of Kharkiv.
Governments imposed financial sanctions against Russia earlier this week after Moscow recognised the independence of Donetsk and Luhansk – two breakaway regions of Ukraine – and deployed troops there, raising fears that it was a precursor to a wider invasion of Ukraine. The latest developments are set to spark a fresh wave of sanctions.
UK Prime Minister Boris Johnson said on Thursday: "Today in concert with our allies we will agree a massive package of economic sanctions designed in time to hobble the Russian economy."
Members of the North Atlantic Treaty Organization have sent some weapons, equipment and military experts to Ukraine, but governments are relying on economic sanctions to compel Putin to back down. President Biden has ruled out sending US troops to Ukraine.
Some Ukrainian lawmakers and analysts have suggested, however, that sanctions may not be immediately sufficient to deter Putin, who has taken steps to insulate the Russian economy since earlier sanctions were imposed after Russia's 2014 annexation of the Crimea region.
Since then, Russia has worked to bolster its foreign exchange reserves, lowered its budget, and sought to reduce its reliance on other countries and the European Union for exports.
Marc Ostwald, chief economist and global strategist of ADM Investor Services International Ltd, said in a statement to Insider on Thursday that ramping up financial sanctions may lack the teeth needed to force an immediate rethink in Moscow.
"While increasing financial sanctions would clearly have an impact in the long run, these will have little short-term effect, given the many measures Russia has taken since the annexation of the Crimea to decouple itself to a substantial extent from the western financial system," he said.
Russia's military offensive is not immune from causing economic damage at home, however. Its currency, the rouble, slid to a record low Thursday, and the country's blue chip stock indices plummeted 50%. Global stocks have also plunged, while oil and other key commodities soared on Thursday, with oil hitting $100 a barrel for the first time since 2014.
Following Thursday's events, leaders in Washington D.C., London, and Brussels are expected to outline further measures, which could include cutting Russia off from SWIFT, the system that facilitates international bank transfers.
Here's a list of sanctions imposed so far:
United States
President Joe Biden on Tuesday announced two sets of sanctions targeting Russia, saying the US has "cut off Russia's government from Western financing."
On Monday, The White House enacted an executive order, which banned new investments in the separatist regions of Donetsk and Luhansk in Ukraine by American citizens, and importing and exporting goods between the regions and the US.
The following day, Biden introduced "full blocking sanctions" on two Russian financial institutions, including VEB and Russia's military bank Promsvyazbank, meaning assets under US jurisdiction are frozen in Russia and US businesses are blocked from conducting transactions with the banks, per a Treasury Department press release.
"It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets, either," Biden said from the White House on Tuesday.
The White House also set sanctions against Russian elites and their families, blocking property and interests in property in the US belonging to the targeted individuals.
Tass news agency cited Promsvyazbank saying US sanctions wouldn't significantly effect the bank because it had already implemented precautionary measures, although it didn't clarify those, Reuters reported.
United Kingdom
Prime Minister Boris Johnson sanctioned five Russian banks and three individuals on Tuesday after Putin ordered his troops into the two breakaway regions.
The five banks included General Bank, IS Bank, Rossiya, Promsvyazbank, and the Black Sea Bank — any assets which these banks hold in the UK will be frozen under the sanctions.
The three sanctioned individuals – Boris Rotenberg, Gennady Timchenko, and Igor Rotenberg – are banned from traveling to the UK, their assets in the UK are frozen, and UK citizens are prohibited from doing business with them, per the UK's sanction order.
Johnson said it was the "first tranche, the first barrage" of sanctions against Russia, and the UK was prepared to impose more.
European Union
EU sanctions announced Wednesday will hit a larger range of Russian interests compared to the US and UK. The union said it is targeting 351 Russian lawmakers, 27 individuals and entities, per its press release.
Trade restrictions between the Donetsk and Luhansk regions and the EU would also come into force, according to the release.
German Chancellor Olaf Scholz said on Tuesday that he had halted the Nord Stream 2 gas pipeline deal between Germany and Russia after troops moved into the two breakway regions. The move cuts off Russia's potentially lucrative sales of natural gas to Germany, although it may add to energy supply concerns in Europe.
European natural gas prices soared by 30% Thursday as investors braced for the crisis to impact global energy supply. Russia is one of the world's largest producers of crude oil and natural gas.
Former Russian President Dmitry Medvedev tweeted: "Welcome to the brave new world where Europeans are very soon going to pay €2,000 for 1,000 cubic meters of natural gas!"
Japan
Prime Minister Fumio Kishida said on Wednesday that Japan was outlawing the issuance of Russian bonds in Japan, freezing the assets of certain Russian individuals and restricting their travel to Japan, Reuters reported.
Australia
Prime Minister Scott Morrison on Wednesday described Russia's attack on Ukraine as "unprovoked" and "unjustified," before announcing sanctions against the country.
More than 30 Russian individuals, as well as the Russian State Development Bank, VEB, Promsvyazbank, Rossiya, IS Bank, the General Bank, and the Black Sea Bank will be targeted by Australia's sanctions, Morrison said.
South Korea
Reuters reported that President Moon Jae-in said on Thursday that South Korea would impose sanctions on Russia, but didn't elaborate on what might be included.
China criticizes sanctions
Chinese Foreign Ministry spokesperson Hua Chunying told reporters on Wednesday that sanctions wouldn't be effective at resolving the Ukraine crisis, and accused the US of "creating panic" with sanctions and "hyping up the possibility of warfare."
It comes after China published a joint statement with Moscow earlier this month which condemned NATO.
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