As a result of the recent political tensions between Russia and the West, the European Union (EU) has decided to impose further economic sanctions against Russia. These new sanctions were adopted in June 2021 and affect, among others, Russian banks.
One of the most important innovations of the sanctions concerns the restriction of Russian companies’ access to financial markets in the EU. In concrete terms, this means that Russian banks, as well as other financial institutions, are not allowed to issue new bonds or shares on the EU market. This measure is intended to reduce Russian access to Western financial markets and thus increase economic pressure on the country.
However, the EU’s new sanctions affect not only banks, but also other sectors of the economy. For example, constraints on energy, transportation and telecommunications have also been adopted. The focus of the sanctions, however, is clearly on the financial markets and the banks involved.
However, the EU’s decision to impose new sanctions on Russia has not only political implications, but also economic ones. For example, Russian companies are now expected to become more active in Asian financial markets. In addition, European companies could also suffer from the consequences of the sanctions, especially if they have close business relationships with Russian partners.
Impact of the new EU economic sanctions on Russian banks
The EU has recently imposed new economic sanctions on Russia, which will also have an impact on Russian banks. The sanctions are a response to the ongoing crisis in eastern Ukraine and Russia’s annexation of Crimea in 2014. The new sanctions are aimed at increasing economic pressure on Russia and encouraging the parties to the conflict to reach a political solution.