The objective of the economic sanctions imposed on Russia is to maximise the pressure on the country and make its invasion of Ukraine as costly as possible.
International companies leaving Russia partly fear exposure to the sanctions and partly do not want to be seen as indirectly funding the war which would seriously damage their reputation.
Of course, the Russian government and central bank will downplay the importance of this step. Russia has an alternative to the US payment systems, including its own as well as China’s Union pay, which is accepted in 180 countries and has been a competitor to the US systems.
The effects of the halt of Visa and Mastercard services in Russia will be mainly felt by the Russian citizen, which in turn can cause discontent with the government.
“No endgame for Ukraine“, Christof Rühl, Feb 2022
“Can Europe completely cut its reliance on Russian energy supplies?“, Dr Carole Nakhle, Mar 2022
“Can Europe decrease its reliance on Russian gas?“, Dr Carole Nakhle, Mar 2022
“International oil companies exiting Russia“, Christof Rühl, Mar 2022
“Russia, OPEC+, Europe and Energy Markets“, Dr Carole Nakhle, Mar 2022
“The impact of the exclusion of Russian banks from the SWIFT system on payment processes“, Dr Carole Nakhle, Feb 2022
“Can Russia withstand another wave of sanctions?“, Dr Carole Nakhle, Feb 2022
“EU Energy Policy amidst the Current Gas Crisis“, Dr Carole Nakhle, Feb 2022