G7 sanctions will shrink Russia's economy by up to 15 percent

G7 sanctions will shrink Russia’s economy by up to 15 percent

April 7, 2022

The world’s seven most powerful economies have continued to impose sanctions on Vladimir Putin’s regime for its atrocities in Ukraine, including the Bucha massacre.

According to the US State Department, these measures are aimed at stopping new investments and restricting the financial activity of Russia’s largest bank, Sberbank and some of its most critical state-owned enterprises, as well as against officials of The Kremlin.

“The United States and more than 30 allies and partners around the world have imposed the toughest economic sanctions in history. Experts predict that Gross Domestic Product will shrink by up to 15 percent by 2022, erasing the economic gains of the last 15 years. “Inflation is already rising above 15 percent and is projected to accelerate even further,” the statement said.

More than 600 private sector companies have already left the Russian market.

“Supply chains in Russia have been cut off. Russia is likely to lose its status as a major economy and will continue a long decline in economic, financial and technological isolation. “As long as Russia continues its brutal attack on Ukraine, we will stand united with our allies and partners in imposing additional costs on Russia for its actions.”

The sanctions include Russia’s largest financial institution, Sberbank, and Russia’s largest private bank, Alfa Bank. The move will freeze any assets of Sberbank and Alfa Bank affecting the US financial system and stop US citizens from doing business with them.

Sberbank holds nearly a third of the total assets of the Russian banking sector and is critical to the Russian economy. Alfa Bank is also the largest private financial institution in Russia.

As for the ban on new investments in the Russian Federation, US President Joe Biden will sign an order that includes a ban on new investments in Russia by American people everywhere, which will further isolate Russia from the world economy. .

Complete blockade of Russian elites and members of their families includes sanctions on the children of President Putin, the wife and daughter of Foreign Minister Sergei Lavrov and members of Russia’s Security Council, including former President and former Prime Minister Dmitry Medvedev and current Prime Minister Mikhail Mishustin.