the latest financial sanctions will cripple Russia’s economy

The financial measures just announced against Russia are unprecedented for a country of Russia’s size.

This of course means it’s impossible to predict exactly how their impacts will reverberate around the Russian–and global–economy. And we still need to see the exact details of the plan.

But on their face they threaten the collapse of the Russian ruble, a run on Russian banks, hyperinflation, a sharp recession and high levels of unemployment in Russia, as well as turmoil in international financial markets.

Over the weekend the European Commission, France, Germany, Italy, Britain, Canada, and the US imposed four measures they had been holding off on:

  • they removed selected Russian banks from SWIFT, the global financial messaging system that enables money to travel around the world

  • they agreed to prevent Russia’s Central Bank from deploying its international reserves in ways that undermined the sanctions, crippling its ability to use…

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