Sanctioning “Fortress Russia”: Of Oil Prices, Yachts & A No-Fly Zone

On February 24th, 2022, Russia invaded Ukraine, bombing several cities and surrounding others, including the Ukrainian capital Kyiv. And today, the Newsminute is back with more updates on the sanctions other countries are imposing on Russia.

At the start of this invasion, many countries, including the United States (U.S.) and the European Union (EU), have made clear they wouldn’t get into intervening directly. However, that doesn’t mean these countries can’t slap sanctions on Russia. They’re targeting the Russian economy instead of fighting head-on. U.S. President Joe Biden has just banned imports of Russian oil and natural gas and cut off other Russian imports in the process. Since Russia is a mass oil producer, this took a direct toll on oil prices internationally, which rose dramatically. Russian banks have also got banned from SWIFT, the Society for Worldwide Interbank Financial Telecommunication, cutting the country from a swath of international financial transactions. However, Russian President Vladimir Putin knew this all along, even when he ordered the invasion. He’s been stockpiling cash in all kinds of currencies, essentially trying to back the Russian Ruble in the case of a collapse, and the country has gained a new name “Fortress Russia.”

Another way countries are pressuring Russia is by sanctioning the most wealthy people of Russia, referred to as the oligarchs, by freezing assets owned or controlled by these people. Why the oligarchs? To answer that, we need to look at why there are oligarchs in the first place. When the Soviet Union collapsed, the Russian economy was unstable, and a few individuals brought all the big companies in the process. These people are usually friends of the current president, changing as new presidents come and old presidents go. Why sanction the oligarchs? Seizing things like their luxury yachts and confiscating property like houses, where they stashed their cash in, will make the oligarchs uncomfortable. Then there’s the tiniest chance that maybe these billionaires would speak out against the invasion to get those yachts back. And by the slimmest odds, Putin maybe will listen to them. But as sanctions go, most people think that if these don’t affect Putin in a sizable way, the chances are that he would continue doing what he’s doing.

In the currently ongoing invasion, Ukrainian president Volodymyr Zelenskyy is asking other countries to impose a no-fly zone partially or entirely over Ukraine. A “no-fly zone” could be crucial for Ukraine to ward off Russian troops, which has to do with air superiority, how much of the skies a military controls. If Russia gets the air superiority, defeating most Ukrainian air forces, its ground troops can then advance faster, with no fear of getting attacked from above. The Russian planes can also quickly defeat the remaining Ukrainian ground troops. If there were a no-fly zone, that wouldn’t happen since neither side’s planes can fly over that space. However, that would mean other countries would need to send planes in to first struck down some enemy planes out of the air to establish the no-fly zone, meaning those countries would be in direct war with Russia. More importantly, no one wants World War III.

For now, sanctions are the only way other countries can try to get hold of the situation, and Russia would continue invading Ukraine. But when it comes to you, dear reader, which one would you choose: Peace or violence? That’s the end of this production, brought to you by the New News Newsminute. As always, thank you for reading, and stay safe.