Russia-Ukraine War: Russia faces barrage of sanctions – an overview

File image of Russian President Vladimir Putin

From corporates to brands, oil companies and crypto exchanges and now sports leagues, the noose seems to be closing in on Russia with the US and Europe extending sanctions on areas ranging from trade to airspace

In the latest news, two major international sports bodies - FIFA and UEFA - have imposed an indefinite ban on the Russian football team as part of the sanctions to isolate Russia amid its invasion of Ukraine. The International Olympics Committee (IOC) is also recommending a ban on Russia and its ally Belarus.

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Global sanctions pile on

The global sanctions on Russia have been unprecedentedly united – with even historically neutral countries Finland, Sweden and Switzerland declaring support to Ukraine. The former two have promised to supply Ukraine with weapons, while Switzerland announced sanctions on Russia.

Also Read | US to ban Russian flights from American airspace, officials say

Oil companies: Shell (Europe’s largest oil company) and British Petroleum (BP – the biggest foreign investor in Russia) also announced exits from their respective joint ventures (JVs) with Russian natural gas producer Rosneft. Norway's Equinor ASA also said it would abandon Russia operations.

US corporates: Earlier on March 1, top American brands such as Apple, Exxon Mobil, Ford, Google (Alphabet) and Harley-Davidson joined the list of corporates shunning Russia.

Apple Inc. has stopped sales of iPhones and other products in Russia and was making changes to its Maps app to protect civilians in Ukraine; Exxon Mobil said it would discontinue Russian operations and exit Sakhalin-1 JV; Google has dropped Russian state publishers from their news platform; Ford has informed its three JVs in Russia that it would suspend operations in the country; and Harley-Davidson has suspended its bike shipments to the country.

Tech companies: Microsoft earlier said it would remove Russian state-owned media outlet RT's mobile apps from its Windows App store and ban ads on Russian state-sponsored media; while Google barred RT and other Russian channels from receiving money for ads on websites, apps and YouTube videos, similar to a move by Facebook.

OEMs: Further, a Politico reporter tweeted that Boeing has suspended parts, maintenance and technical support services for Russian airlines, will suspend major operations in Moscow and temporarily close office in Kyiv. Boeing however is yet to confirm this.

Sports – the newest frontier: FIFA and UEFA, two of Europe’s top sports governing bodies, on March 1 announced that they will ban the respective Russian football teams from competition until further notice. Notably, this is a reversal from FIFA’s previous stance on February 27.

Further, the IOC has recommended that sports organisations ban Russia and Belarus from competitions. Belarus has allied with Russia during its moves on Ukraine.

Airspace: Further tightening the noose, the US government is expected to ban Russian flights from American airspace as soon as March 2, government and industry officials told Reuters.

The orders suspend operations of all aircraft owned, certified, operated, registered, chartered, leased, or controlled by, for, or for the benefit of, any Russian citizen. This includes passenger and cargo flights, and scheduled as well as charter flights that will "effectively close U.S. air space to all Russian commercial air carriers and other Russian civil aircraft," the US Department of Transportation and Federal Aviation Administration said.

Space, the lone dissenter: Amid all this, the standout frontier for cooperation is space. Despite growing sanctions on Russia, NASA said it would continue cooperation with Russians on operating the International Space Station (ISS).

Sanctions making impact?

Restrictions from the West have hit the Russian economy hard, with the rouble currency falling as much as a third to a record low. Financial isolation is rising as shipping companies say they will not serve Russian ports.

The global sanctions on Russia have been unprecedentedly united.

Russian companies are in particular peril with such Western investors, since they often are not open to talks to change their behaviour, said TJ Kistner, vice president at Segal Marco Advisors, a large US pension consultant. Western investors may respond by pulling out. "The only course of action for many is simply divestment," Kistner said.

And a boom of investor interest in environmental, social and governance (ESG) factors is making it more difficult for those companies that sit on the sidelines.

Moscow has responded by temporarily curbing foreign investors from selling Russian assets.