According to reports, some Russians have complained that the sanctions are unjustified. That they’re unfairly punishing innocent Russians for the crimes of their leader. Putin rose to power 20 years ago under false pretenses and has reportedly killed any challenger, so I understand their frustration. However, the effectiveness of global sanctions against the country is undeniable.
Russian banks have been cut off from the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, a Belgian company that processes transactions for more than 11,000 financial institutions across the globe.
On Monday, the Russian rouble plunged to a record low of less than one US cent, losing more than 30 percent in value since the anti-Moscow steps where taken.
“The war itself will have a dramatic effect on the Russian and world economy. First, it is the loss of human life, both of military personnel and civilians – a long-lasting psychological impact. Although Russia has accumulated huge gold reserves, which would have let it survive previous sanctions for quite some time, now it will be used for the war machine,” said Inna Pomorina from Bath Spa University, who has signed an open letter by Russian economists condemning the war.
“Banning Russia from SWIFT as part of sanctions will be a major blow to Russian banks, as completing financial transactions will no longer be as simple for Russian businesses and for the Russian government,” she told Al Jazeera.
“Of course, sanctions will hurt ordinary people as well – they won’t be able to travel, prices will rise due to high inflation, many will lose their jobs, and international companies will stop operating in Russia.”
I don’t think that it’s anyone’s intention to hurt innocent Russians or their businesses but the reality is, the world needs them to handle the Putin situation before other countries are forced to do so.