- New British sanctions against Russia could last ten years, the UK government has said.
- The UK is prohibiting the export of high-end and critical technical equipment to Russia.
- Russian businesses face restrictions on financial transactions in the UK.
Financial sanctions against Russia could last ten years, the British government said, as the Russian economy buckled under the force of measures imposed by Western nations.
The UK was part of a coalition of nations, including the US, EU, and Canada, to freeze Russia's foreign reserves and isolate its financial institutions.
British officials also moved to prohibit the export of high-end and critical technical equipment to Russia and limit the ability of Russian businesses to make financial transactions in the UK.
The ten-year estimate was given as part of an assessment of the damage the UK economy would sustain from sticking to the sanctions, estimated at some £285 million ($380 million) a year.
Russia's economy was knocked into a tailspin by the measures. Its currency plunged, the central bank more than doubled interest rates, and its stock exchange was ordered to close on Monday and Tuesday.
The UK said it is trying to "bring down the Putin regime" with the sanctions.
The government laid two new items of legislation before Parliament on Monday evening. They became law immediately, but need to be ratified by parliament within 28 days to remain in force.
- The first introduces prohibitions on the trading of shares and assets or issuing of loans and credit to all Russian businesses using UK capital markets, and on the Russian state raising sovereign debt in the UK. Ministers will be able to ban Russian banks from processing payments through the UK.
- The second bans the export of high-end and critical technical equipment to Russia that could be used for military or civilian use, unless solely for civilian use. Sectors include telecommunications, aerospace, and navigation equipment.
Officials say they are not able to forecast how long the measures will remain in effect.
But for the financial prohibitions, "the most likely scenario [...] assumes the measures will be in place for the full appraisal period (10 years)", at an estimated direct cost to the UK businesses of £7.5 million a year.
Foreign Secretary Liz Truss said this would affect more than three million Russian businesses. The ban on Russian banks to clear payments in sterling will be applied to Sberbank, Russia's largest bank, she said.
The trade ban covers 11.8% of UK goods exports to Russia in 2021, and officials estimate the most likely scenario is it last for nine years, at a cost of £278 million a year – but that it could cost as much as £3.5 billion over nine years.