More Sanctions Have Been Imposed On Russia By G-7 Leaders

Aiming to weaken Russia’s capability to wage war, the United States plans to implement measures to “economically isolate” it.

Separately, the United Kingdom imposed additional sanctions on imports of Russian-origin copper, aluminum, and nickel as well as on Russia’s diamond industry, which is expected to generate $4 billion in exports in 2021.

As Russia’s invasion of Ukraine continues for a second year, leaders of the Group of Seven are expected to introduce a set of measures to increase pressure on Russia.

The leaders of the G-7 are in Hiroshima, Japan, for a three-day meeting to talk about international trade and security as the Ukraine war goes on and the United States and China fight for influence in a multipolar world with fears of decoupling.

On the condition of anonymity, a senior U.S. administration official stated early Friday morning that the government plans to implement measures to “economically isolate” Russia in order to weaken its ability to wage war.

“We will continue to expand export controls to make it even harder for Russia to sustain its war machine,” the senior official told reporters, emphasizing that the U.S. government’s “commitment to continue tightening the screws on Russia remains as strong as it was last year.”

Conversations on the extent of the authorizations on Russia will be in progress as Ukrainian President Volodymyr Zelenskyy is allegedly expected to travel to Japan to go to the G-7 culmination on Sunday, as per the Financial Times.

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The American official went on to say that every member of the G-7 is getting ready to implement a new set of export controls. This will include adding over 300 new sanctions against individuals, organizations, vessels, and aircraft and adding 70 new entities to the U.S. commerce blacklist.

The official stated,

“These will go after financial facilitators, as well as future energy and extractive capabilities of Russia and other actors helping to support the war, adding the sanctions will span Europe, the Middle East and Asia”.

Meanwhile, diamonds have been banned in the interim, and the United Kingdom has also imposed additional sanctions on Russia under legislation that will be introduced later this year.

The U.K. is today announcing a ban on Russian diamonds, an industry worth $4 billion in exports in 2021, as well as imports of Russian-origin copper, aluminium and nickel,” Prime Minister Rishi Sunak’s office said in a Friday May 19 release.

“As today’s sanctions announcements demonstrate, the G7 remains unified in the face of the threat from Russia and steadfast in our support for Ukraine,” Sunak added.

However, it is highly unlikely that the additional efforts to squeeze Russia’s economy will have a significant impact.

World trade will not be significantly affected by the new restrictive sanctions imposed on Russia. These actions are not really liable to get Russia to stop its conflict on Ukraine since Putin is completely dedicated to that and the authorizations are not hurting Russia’s capacity to work on an everyday premise, according to reports.

Russia still has a lot of trading partners because China and India aren’t taking part in the sanctions.

According to economic experts, putting an end to the war that prevents Russia from further aggression will be the best outcome for global trade.