To punish Russia for a new world. How London and Europe operate

PUNISHING RUSSIA FOR THE NEW WORLD. HOW LONDON AND EUROPE ACT

Europe and Great Britain announced sanctions against Russia after the recognition of the independence of the Donbass republics. We tell you what our opponents oppose to the new world https://gfxcity.blogspot.com/.

Apparently, having recovered from the shock, Russia's opponents in Western countries began to play the game announced by the Russians the day before. The game is unoriginal. It is a competition in sanctions pressure on Russia. So, who is proposing what. 

London hits the oligarchs.

British Prime Minister Boris Johnson says sanctions will be imposed on Russian oligarchs as well as five Russian banks. 

We are imposing sanctions against three very high-profile individuals: Gennady Timchenko and Boris and Igor Rotenberg. Any assets they have in the UK will be frozen," Johnson said, adding that the businessmen's assets will be frozen and British companies will not be able to do business with these Russian representatives. 

Assets of banks have also been announced to be frozen:

Rossiya Bank;

Promsvyazbank;

Joint-Stock Commercial Bank Industrial Savings Bank;

Genbank;

The Black Sea Bank of Development.

By the way, the Black Sea Bank of Development was restricted after 2014 as a Crimean bank. At the time of publication of this article, the press services of the credit institutions had not responded to London's decisions. As a reminder, the restrictions are imposed in connection with Russia's recognition of the independence of the Donbass republics. 

Europe picks up the baton

The European Council and the European Commission adopted a joint statement on the introduction of sanctions against Russia after the recognition of the independence of the LNR and DNR. In particular, the governing bodies of the EU intend to impose sanctions against those persons who were involved in the decision to recognize the independence of the People's Republics.

Restrictions will also be imposed on those Russian banks that finance the military and other individuals on the territory of the DNR and LNR. The EU authorities intend to restrict Russia's access to the EU financial markets and services.

Also, the EU should adopt restrictions against trade with the LNR and DPR "to ensure that the perpetrators feel the economic consequences of their illegal and aggressive actions."

German Chancellor Olaf Scholz also spoke separately. He stated that the Germans will re-certify Nord Stream 2, thus stopping the certification. By the way, Dmitry Medvedev, deputy head of the Russian Security Council, has already responded to this:

Well, welcome to the new world, in which Europeans will soon be paying 2,000 euros per thousand cubic meters of gas!

How will Russia respond?

Sergey Glazyev, an economist and member of the Russian Academy of Sciences, searched for the answer in his personal Telegram channel. After the Russian president's long-winded decision to recognize the LNR, the Bank of Russia should have taken measures to ensure the stability of the ruble exchange rate:

With foreign exchange reserves three times the monetary base, the Central Bank can keep the exchange rate stable, despite speculative attacks of any power. However, the regulator, just as in 2014, after the announcement of the first U.S. sanctions, on the contrary, leaves the ruble exchange rate in free float, leaving it at the mercy of international speculators," Glazyev said.

Now, on the eve of the inevitable new wave of sanctions, the U.S. hedge funds that dominate the Russian currency market will undoubtedly start a speculative attack against the ruble again. The Bank of Russia can easily block it, but will it?

Or will it once again play along with the U.S. sanctioners, as in 2014? Objectively, neither the EU nor the U.S. can inflict serious damage on the Russian economy without the connivance of the Central Bank. The latter has sufficient foreign exchange reserves to ensure a stable exchange rate, a modern interbank electronic messaging system that can replace the notorious SWIFT, a developed network of correspondent relations with the central banks of friendly countries, allowing for currency swaps, and digital technologies that can be used to circumvent sanctions," says Sergey Glazyev to https://gfxcity.blogspot.com/.