Vladimir Putin-led Russia launched a “special military operation” on its neighbour Ukraine, leading to the biggest armed conflict since 1945. Russia attacked Ukraine in February 2022 stating that they did not feel “safe,” given Ukraine's leaning towards the West. Thousands have lost their lives since then. Cities lie in shambles and millions have migrated from the country they called home.
Background of the war
Ukraine achieved independence in 1991 post the collapse of the Soviet Union. After becoming an independent entity, Ukraine showed an inclination towards the West, the European Union (EU) and NATO.
The North Atlantic Treaty Organization, or NATO, is an intergovernmental military alliance. It has a total of 30 member states — 28 European states, the United States, and Canada. The organisation was established in 1949 as a measure of security against the Soviet Union.
With Ukraine seeking to establish ties with NATO, Russia deemed fit to invade the country purportedly to safeguard its borders and the people within.
West's involvement in the war
The West hasn't been a mere spectator to the crisis in Ukraine. While it did not enter the battlefield directly, it has kept up a steady supply of ammunition to Ukraine. Also, it imposed a large number of sanctions aimed at weakening the Russian economy.
Sanctions are financial penalties that a government or authority imposes on another entity as a means of punishment.
Russia is one of the world’s biggest exporters of oil, which is a major source of income for the country. The US has banned imports of Russian oil and natural gas while the EU has lashed its Russian gas imports by two-thirds (banning import of oil transported by sea) — an attempt to ban the import in a phased manner. UK too will cease imports in a phased manner by the end of the year.
EU has a Russian coal import ban by August in the pipeline.
In order to prevent Russia from using its $630 billion (£470 billion) of foreign currency reserves, the central bank's assets have been frozen and county's banks have been removed from SWIFT, the international financial messaging system. The EU, UK, US and Canada have barred Russian airlines from their airspace.
Apart from the country as a whole, sanctions have been imposed on individuals, including Putin, the orchestrator of the war. The British government has also halted the sale of "golden visas," which enabled wealthy Russians to become British citizens.
More than 1,000 foreign companies have stopped investing in Russia. For instance, 30 years after establishing in Russia, McDonald's is exiting the market. UK and EU have banned export of luxury items to Russia.
How these sanctions affect Russia
Oil was a huge source of income for Russia. Even though China, and India too, continue to export large quantities of oil from Russia, the country is suffering huge losses. Before slashing the imports, the EU had been a source of over $1 million a day for Russia as it imported humongous amounts of crude oil and oil products.
A removal from SWIFT means that the transactions in return for exports is slow. The freezing up of the foreign reserves obstructs Russia’s ability to make international payments.
These sanctions aim to make Russia economically weak and stop their supply of money, which in turn goes to backing the war efforts. An import-dependent nation, Russians citizens are bearing the brunt of the sanctions. In April, inflation touched the 20-year high of 17.8 percent.
