The UK has enacted its largest sanctions package against Russia, targeting major energy and financial sectors, including Gazprom and Rosatom, as part of its support for Ukraine.
In a significant escalation of its economic response to the ongoing conflict in Ukraine, the UK has introduced its most expansive sanctions package to date, aimed at crippling the Russian energy and financial sectors. The sanctions particularly focus on major players such as Gazprom and Rosatom, which are vital to Russia's economy. According to the British government, international sanctions have deprived Putin of over $450 billion, equivalent to two years of spending on his controversial war. This financial pressure is intended to exacerbate Russia's economic struggles, which the UK estimates are leading to significant decreases in revenue and an unprecedented low in oil income since 2020.
As the economic ramifications intensify, the Kremlin is reportedly forced to compensate for the loss in revenue by increasing taxes on ordinary Russians, including VAT and corporate income taxes. This move is indicative of the strain that ongoing international sanctions are inflicting on Russia’s economy, which has reportedly stagnated for over a year. The ramifications of these sanctions not only highlight the UK's commitment to supporting Ukraine financially amidst the conflict but also reflect a broader international consensus on imposing severe economic repercussions on Russia's aggressive actions.
In terms of new measures, the sanctions also extend to Transneft, the state monopoly responsible for transporting over 80% of Russia's oil exports via pipelines, marking the first time the company has been targeted in such a manner. This demonstrates the UK’s strategic approach to undermining the critical infrastructure that supports Russia's oil export capabilities, further contributing to tightening the economic noose around the Kremlin as it seeks to fund its military operations in Ukraine.
