Earlier this week, Russia became the most-sanctioned country in the world. These sanctions are in response to Russia’s invasion of Ukraine. Russia invaded Ukraine in the last week of February. Despite many warnings and sanctions, it has not stopped the invasion and is continuing with its actions.
In response to this, the international banking system SWIFT even removed major Russian banks. This majorly impacted the finances and wealth of Russia.
Response of US and EU
Furthermore, the United States and European Commission are holding discussions on how to restrict the flow of finances of Russia. One major area is digital assets and cryptocurrency. There is suspicion that Russia will use crypto funds for transitions and flow of funds. They might even take the aid of Belarus as Belarus is an ally of Russia. So there are going to be sanctions on digital assets as well.
Compared to the banking system, digital assets are relatively difficult to control. But Russian originated crypto wallets, accounts and exchanges can be sanctioned. The same can be done for Belarus. The voting for this will happen soon. It might alienate Russia from the world.
Economic State of Russia
Alongside sanctions, major companies are stopping their operations in Russia. From KPMG, PWC to even Mcdonalds, many big names are shutting their doors amidst these turbulent times. All such decisions are not looking good for the Russian Economy. The value of Russia’s currency is hitting record-breaking low levels. The stock market is showing a negative trend, and the reserve funds are exhausting. It is unclear as to what will be the state of Russia’s economy once the invasion stops.