International sanctions during the Russian invasion of Ukraine

Following the full declaration of the Russian invasion of Ukraine, which started on 24 February 2022, many countries and groups took strong steps to show their disapproval. The United States, the European Union, and other Western countries put in place or made much stronger rules called sanctions. These sanctions were aimed at important leaders like Russian president Vladimir Putin, other government members, and many Russian citizens.

Some big Russian banks were banned from using the SWIFT international payments system, which made it harder for Russia to do business with the rest of the world. These sanctions and the boycotts of Russia and Belarus caused many problems for the Russian economy. Even so, Russian leaders found ways to lessen these problems. They bought important goods from places that don't usually have export rules, used worldwide supply chains cleverly, and traded more with countries like China, India, Turkey and the UAE that did not follow the Western sanctions.

Background

Main article: International sanctions during the Russo-Ukrainian War

Western countries and others put sanctions on Russia after it took control of parts of Ukraine in February 2022. These sanctions included cutting off some Russian banks from a special money network called SWIFT. They also froze a lot of Russia's money and stopped some trade. Big companies like Apple and IKEA decided to stop doing business with Russia.

Countries like Switzerland and Singapore agreed to some sanctions too. Germany stopped a big pipeline from Russia and started buying energy from other places. The United States added more sanctions, including stopping Russia from using gold and targeting defense companies. Many companies and groups chose to stop working with Russia because of these sanctions.

Sanctions

Western countries and others began placing sanctions on Russia when it recognized the independence of self-declared Donbas republics. After the invasion began on 24 February, many countries started applying sanctions to affect the Russian economy. The sanctions targeted individuals, banks, businesses, money exchanges, and trade.

After Russia invaded Ukraine on 24 February 2022, two governments that had not taken part in sanctions before, South Korea and non-UN member state Taiwan, also imposed sanctions on Russia. On 28 February 2022, Singapore announced banking sanctions against Russia, becoming the first Southeast Asian country to do so. The sanctions included materials that could be used for weapons, as well as electronics and technology devices.

On 25 February and 1 March, Serbia, Mexico and Brazil said they would not take part in economic sanctions against Russia.

On 28 February, the Central Bank of Russia was blocked from accessing about $300 billion in foreign-exchange reserves held abroad. The EU also sanctioned several Russian oligarchs and politicians. The US Foreign Assets Control (OFAC) prohibited transactions with the Central Bank of Russia, the Russian Direct Investment Fund, the Russian Venture Company, and Kirill Dmitriev, an ally of Vladimir Putin.

Sergei Aleksashenko, a former Russian deputy finance minister, called it a "financial nuclear bomb" for Russia. By July 2023, frozen Russian assets in the G7 countries and the EU were estimated at $335 billion.

Fossil fuels and other commodities

Further information: 2022 Russian crude oil price cap sanctions, 2023 Russian oil products sanctions and price cap, Embargo of Russian oil during the Russo-Ukrainian War, and EU natural gas price cap

On 28 February 2022, Canada banned imports of Russian crude oil. On 8 June, Canada also banned services to the Russian oil, mining, gas, and chemical industries.

On 8 March, US president Joe Biden banned imports of oil, gas and coal from Russia.

Also on 8 March, Shell said it would leave the Russian hydrocarbons industry.

Switzerland is a major hub for commodities trading. Much of Russia's commodity trading goes through Geneva. Many commodities companies linked to Russia are in Zug.

In May, the European Commission proposed a ban on oil imports from Russia. The plan was changed to ban oil imports by sea to accommodate Hungary. Imports of oil by pipeline from Russia were exempted but will be phased out. Germany and Poland said they would end pipeline deliveries. The embargo on crude oil began in December 2022 and oil products in February 2023.

In April, the European Commission said "the era of Russian fossil fuels in Europe will come to an end". In May, the EU planned to end reliance on Russian oil, natural gas and coal by 2027.

In September, the G7 agreed to cap the price of Russian oil to reduce Russia's ability to finance its war. The EU followed this in October. Some countries gained exemptions.

In 2022, Turkish president Recep Tayyip Erdoğan said that Turkey could not join sanctions on Russia because it imports much of its gas from Russia.

In March 2023, when the EU adopted new sanctions against Russia, Russian diamond exports to Europe remained unaffected. In June 2023, EU sanctions against Russian-based diamond exporters were announced.

According to experts, Russian oil can be sent to refineries in third countries to be turned into other products and then re-exported to Europe.

In July, Ukraine said it might not renew its gas transit deal with Gazprom. That deal ended in 2024.

In April 2024, the United States and the United Kingdom banned imports of aluminum, copper and nickel from Russia.

In June 2025, many U.S. senators supported the Sanctioning Russia Act, which would place tariffs on countries that buy Russian oil, natural gas, uranium, and other exports.

Banking

In a 22 February 2022 speech, US president Joe Biden announced restrictions against four Russian banks. UK prime minister Boris Johnson said major Russian banks would have their assets frozen and be cut off from the UK financial system.

Days later, many European nations agreed to cut many Russian banks off from the SWIFT international banking network.

On 26 February, two Chinese state banks limited financing to buy Russian raw materials. On 28 February, Switzerland froze a number of Russian assets and joined EU sanctions. The same day, Monaco adopted sanctions identical to those of most European states. Singapore became the first Southeast Asian country to impose sanctions on Russia. South Korea said it would join the SWIFT ban against Russia.

On 28 February, Japan said its central bank would limit transactions with Russia's central bank and sanction Belarusian organisations and individuals.

Russian frozen central bank assets

Main article: Confiscation of Russian central bank funds

Within days of the invasion, western countries froze Russian central bank funds. In May 2023, the G7 countries and the European Union said the frozen assets would remain frozen "until Russia pays for the damage it has caused to Ukraine". The frozen assets were estimated at $335 billion by late July 2023.

Restrictions on purchase and transfer of goods

The EU banned cars with Russian license plates from entering the EU.

European impounding of ships

A 5 April 2022 article by Insider claims the total cost of yachts impounded throughout Europe to be over $2 billion.

France

On 26 February, the French Navy intercepted Russian cargo ship Baltic Leader in the English Channel. The ship was taken to the port of Boulogne-sur-Mer for investigation.

On 2 March, French customs seized the yacht Amore Vero at a shipyard in La Ciotat. The Amore Vero is believed to be owned by sanctioned oligarch Igor Sechin.

Two yachts belonging to Alexei Kuzmichev of Alfa Bank were seized by France on 24 March.

Germany

On 2 March, German authorities seized the Dilbar, owned by Alisher Usmanov. It is reported to have cost $800 million.

Italy

On 4 March, Italian police seized the yacht Lady M. Authorities believe the ship is owned by Alexei Mordashov. The same day, Italian police seized the yacht of Gennady Timchenko, the Lena, in Sanremo. On 12 March, Italian authorities seized the sailing yacht A, owned by Andrey Melnichenko.

Spain

In March, the Spanish Ministry of Development detained three yachts for investigation. The Valerie is in the Port of Barcelona; Lady Anastasia in Port Adriano in Calvià, Mallorca; and the Crescent in the Port of Tarragona.

United Kingdom

On 29 March, Grant Shapps announced the seizure of the PHI.

Netherlands

On 6 April, Dutch Minister of Foreign Affairs Wopke Hoekstra reported that twelve yachts under construction were immobilized to check ownership.

Lithuania

On 20 April 2023, Lithuanian parliament approved sanctions against all Russian and Belarusian citizens. From 1 May 2023, citizens of these countries cannot obtain Lithuanian visas or buy property in Lithuania.

Aviation

The EU sanctions included a ban on the sale of aircraft and spare parts, and required lessors to end leases on aircraft with Russian airlines by the end of March.

Services and spare parts

On 2 March 2022, Airbus and Boeing stopped maintenance support for Russian airlines. On 11 March, China blocked the supply of aircraft parts to Russia. Bombardier Aviation cancelled all orders from Russian individuals or companies. Shortages of spare parts affected foreign aircraft flying into Russian airports.

In June, the Russian government advised airlines to use some aircraft for parts. In August 2022, Russia was stripping parts from Airbus A320s and A350s, a Boeing 737 and a Sukhoi Superjet to maintain other aircraft.

In April 2023, Aeroflot sent its aircraft to Iran for maintenance. In May 2023, Aeroflot told flight attendants not to report maintenance issues that would ground aircraft. In August 2023, some Aeroflot aircraft were operating with disabled brakes.

Leased aircraft

On 10 March 2022, Russia passed laws to stop the return of leased aircraft to foreign lessors. Many aircraft operated by Russian airlines were registered with the Bermuda registry, which suspended airworthiness approvals on 14 March. Russia allowed re-registration with the Russian registry. Some 515 commercial aircraft were leased by Russian airlines from foreign lessors.

By 22 March 78 foreign-owned aircraft had been taken back. By 30 March, over 400 leased aircraft in Russia had been re-registered and would stay in Russia.

Aeroflot resumed flights to "friendly" countries. On 2 June, an Aeroflot A330 was temporarily impounded in Sri Lanka.

Airspace

On 24 February 2022, Ukrainian airspace was closed to civilian aircraft. On 25 February, the UK closed its airspace to Russian airlines. On 27 February, the EU and Canada closed their airspace to all Russian aircraft. The US did the same on 1 March. On 8 March, Aeroflot suspended flights to most international destinations. On 9 March, Finnair began flying over the North Pole to avoid Russian airspace.

By 29 March 2022, many countries had closed their airspace to Russian airlines and private jets.

U.S. "freeze and seize" policy

The main United States sanctions law, IEEPA, blocks assets and prohibits transactions with designated people or entities.

On 3 February 2022, John "Jack" Hanick was arrested in London for violating sanctions against Konstantin Malofeev. He was the first person criminally charged for violating US sanctions during the War in Ukraine.

In the 1 March State of the Union Address, President Joe Biden said the US would target the wealth of Russian oligarchs.

On 2 March, U.S. Attorney General Merrick B. Garland announced Task Force KleptoCapture.

On 11 March, President Joseph R. Biden signed an order prohibiting certain imports, exports, and new investment with respect to Russia.

On 4 April, the yacht Tango was seized in Mallorca by Spanish and US agents.

Defense sector

Sanctions were imposed on entities in the Arms industry of Russia and financial entities supporting the arms industry.

Science

The European Commission and the United States suspended cooperation with Russian entities in research. Russian scientists are affected by the sanctions.

Other entities

On 9 March 2022, the New Zealand Parliament passed the Russia Sanctions Act 2022, allowing sanctions on individuals connected to the invasion. New Zealand also created a blacklist targeting senior Russian officials and oligarchs.

The Bahamas, Antigua and Barbuda and Saint Kitts and Nevis also imposed sanctions on Russia.

On 2 May, Finnish consortium Fennovoima ended its contract with Russia's Rosatom for a nuclear power plant in Finland.

Main articles:

Shifting of safe havens and sanctions evasion

Andorra

On 24 March 2022, Andorra made new rules to stop banking deals by people and groups from Russia and Belarus. Many deals were blocked, and trading some financial items was stopped. Andorran people could not borrow from banks or public groups in these countries. Trading with Russia and Belarus using public money was banned, and Russians could not put new money into Andorra if it was more than €100,000. Andorra followed the same rules as the European Union. The government added more people to their sanction list on 4 May 2022.

Switzerland

Switzerland follows the same sanctions rules as the European Union. Because of this, Russia called Switzerland an "unfriendly nation." Many rich Russians have kept their money in Swiss banks. By July 2022, Swiss authorities had frozen a big amount of money belonging to Russians. The sanctions were aimed at many people and companies linked to the European Union's decisions.

Some critics said Switzerland could do more, but the Swiss government said they follow all EU rules. In May 2022, Switzerland agreed to new rules to stop Russian gold from being traded. In September 2022, Switzerland stopped sharing tax information with Russia. In July 2023, talks were held to make sure Swiss companies were not helping Russia avoid sanctions, especially with oil and energy deals.

United Arab Emirates

Many rich Russians moved their money to the United Arab Emirates (UAE) because of flexible rules there. In early 2022, many Russians bought homes in Dubai, and some private planes and ships linked to rich Russians were seen there. The UAE says it follows international rules but has not added its own sanctions against Russia.

Russian commodities traders relocated from Switzerland to Dubai.

In May 2022, some European leaders suggested the UAE should be listed for letting Russians avoid sanctions. Some very expensive ships and planes linked to Russians were found in the UAE. The UAE said it was neutral and followed United Nations rules.

United Kingdom

By May 2023, 127 British companies said they had broken rules meant to stop helping Russia's economy. In late 2023, Britain added more people and companies to its sanction list, including some linked to gold trading. Britain continues to enforce these rules to stop money from helping Russia.

United States of America

In 2022 and 2023, some American oil service companies kept working with Russia, even though many others stopped. The United States leads in pushing for sanctions to reduce Russia's money from oil and gas. Some American oil companies said they had fewer workers in Russia but that changes in the market affected their earnings.

Effects on Russian economy

In April 2022, Russia sold a lot of gas to the EU and made a lot of money. In the first two months after the invasion of Ukraine, Russia made money from selling fuels, especially to the EU.

Russia's money system had problems, but Russia found ways to keep working. Even though people thought there would be big economic troubles, Russia did not have serious money issues right away. But there were worries about problems in the future if Western countries kept their sanctions.

Russia's economy got smaller in 2022, but not as much as some people thought. The country had trouble trading with Western Europe, but traded more with China. Russia also bought more gold to help its economy.

In 2023, many companies stayed in Russia, and car production went down a lot. Even with these problems, Russia started selling its energy to countries like China and India. The Russian economy stayed strong in some ways, but still had issues with inflation and the value of its money.

In 2024, Russia looked for new ways to handle money to avoid sanctions and relied more on China, but had trouble trading with Chinese banks. Russian companies also tried to find ways to avoid sanctions by moving their work and changing how they sold things.

Collateral damage for individuals using Russian securities market infrastructure in Russia and abroad

Because of sanctions on Russian banks, many investors could not get their money from their investments. These sanctions stopped investors from moving money from places like Euroclear and Clearstream.

Some investors could sell their investments using a special rule from the President of the Russian Federation, but this only worked for some people and amounts. Many others still could not get their money back. The process to get money back was costly and slow, making it hard for small investors to get what they lost.

Effect on global food supply

Further information: 2022–2023 food crises

When Russia began its invasion of Ukraine, fighting near important ports like Odesa made it difficult for Ukraine to send out its wheat. Russia claimed that sanctions from Western countries were stopping them from exporting their own wheat. Leaders from both sides talked about how to solve these problems.

Later, Russia agreed to let grain ships leave Ukraine through the Black Sea. This helped many countries get the food they needed. But as the war continued, it still caused problems for food prices around the world, especially in places like North Africa. Talks are still happening to find ways to keep food moving even while the war continues.

International sanctions during the Russian invasion of Ukraine