The chaos and the fighting continue not only in the Ukrainian territories where Russia has sought a special military campaign to ‘disarm’ and ‘denazify’ the Ukrainian Government (claims which were found to be baseless) but also in the realm of economic and fiscal sanctions designed to cripple Russia’s economy. These sanctions were imposed during the Russian assault on Ukrainian military installations within Ukrainian soil.

The United States has imposed the first tranche of economic and fiscal sanctions against Russia, aiming to weaken Russia’s capacity to service its sovereign debt, financial institutions, and several members of the Russian oligarchy. Specifically, it sanctioned Vnesheconombank (VEB) and Promsvyazbank Public Joint Stock Company (PSB), along with 42 of their subsidiaries, so that its ability to pay back its loans and ability to keep the military financed are indefinitely hampered.

It also imposed sanctions on Donetsk and Luhansk after it was initially recognized by Russia as independent and sovereign countries, banning US investments, business, importation, and exportation of any goods or services in and out of the Russian-backed separatist regions.

A number of countries had originally followed suit in order to keep Russia’s military actions punished as Russian troops raged war on Ukrainian soil. These countries included the United Kingdom, Japan, Australia, the European Union, and Germany. Some of these sanctions included blacklisting and sanctioning Russian politicians and elites who supported the recognition of the breakaway states, restrictions on trade and investment, blocking of importing and exporting to and from the regions, as well as several sanctions for the top 5 Russian banks so that it would not be able to raise funds in the majority of the West.

Most notably, Germany, through the leadership of German Chancellor Olaf Scholz, sided with the West and proceeded to halt the certification process of the Nord Stream 2 gas pipeline at the cost of its own economy and gas supply which it is in dire need of.