In response to Russia's attacks on Ukraine, the UK is relying on financial sanction to stop further devastation.
President Vladimir Putin launched full scale attacks on Ukraine at the end of February with Western allies now imposing laws to punish Russia.
Boris Johnson has now unveiled a 10-point financial plan that will see major sanctions placed on Russia in a move set to target Russian banks and firm
The Prime Minister described the UK's list of sanctions as the "largest and most severe Russia has ever seen".
In addition to this, many businesses have now cut ties with Russia along with sports fixtures being cancelled.
Russia has even been banned from participating in the Winter Paralympics as well as the Eurovision Song Content.
But what sanctions have been imposed, what are businesses doing, and what does this all mean?
Here is everything you need to know.
Sanctions imposed on Russia by the UK Government
Asset freeze against Russian banks
Boris Johnson announced an immediate asset freeze from today against Russia’s second-largest bank VTB, with assets of £154bn.
He said the measure will “stop them from accessing Sterling and clearing payments through the UK.”
Banks subject to this measure will be unable to process any payments through the UK or have access to UK financial markets.
Targeting Russian media, energy and other firms
All major Russian firms are now banned from raising finance on UK markets.
It is understood eight sectors are impacted, including media - suggesting Russian broadcaster Russia Today could be hit.
It will also prevent major Russian firms raising finance in the UK energy market.
Boris Johnson claimed: “These powers will enable us to ban Russian state and private companies from raising funds in the UK, banning dealing with their securities and making loans to them.”
This is in addition to banning the Russian state itself from raising funds in the UK, the Foreign Office said.
Asset freezes on firms and five oligarchs
Sanctions announced target five major defence firms and five new oligarchs with links to Vladimir Putin, on top of three hit earlier this week.
The elite individuals are:
- Kirill Shamalov, Russia’s youngest billionaire, who was married to Putin's second daughter, Katerina Tikhonova, and a former economic adviser to the Kremlin.
- Petr Fradkov, CEO of Promsvyazbank, and son of the former boss of the FSB.
- Denis Bortnikov, deputy president of the state-owned VTB Bank.
- Yury Slyusar, director of United Aircraft Corporation.
- Elena Aleksandrovna Georgieva, the chairwoman of the board of Novicom bank, which bankrolls Rostec (below).
No sanctioned Russian can travel to Britain, no UK individual or firm can transact with them, and their assets in the UK are frozen.
However, their children can still attend UK schools - even if their parents can’t meet in the holidays - as family members aren’t hit.
More oligarchs will be sanctioned in the coming weeks.
Boris Johnson said: “Overall we will be imposing asset freezes on over more 100 new entities and individuals on top of the hundreds we’ve already announced. This includes all the major manufacturers that support Putin’s war machine.”
Russian airlines banned from landing in the UK
Boris Johnson announced plans to ban state-owned Russian flag carrier Aeroflot from landing in the UK.
Russia’s national airline Aeroflot has also been banned from UK airspace entirely.
Transport Secretary Grant Shapps later confirmed: “I've signed restrictions prohibiting all scheduled Russian airlines from entering UK airspace or touching down on British soil.
“Putin's heinous actions will not be ignored, and we will never tolerate those who put people’s lives in danger.”
Bans on exports of ‘dual-use items’ to Russia
The UK has suspended all dual-use export licences to Russia.
This includes electrical components that could be used in military computers, or parts that could be used in military trucks.
Boris Johnson said they include a “range of high-end and critical technological equipment and components in sectors including electronics, telecommunications, and aerospace.”
Ban on range of high-tech exports to Russia
Laws also see a ban exports in high-tech sectors and minerals, metals, natural gas and oil.
Boris Johnson claimed: “These trade sanctions will constrain Russia’s military-industrial and technological capabilities for years to come.”
Limit on Russians’ UK bank balances
The PM announced: “We will limit the amount of money that Russian nationals will be able to deposit in their UK bank accounts.”
It will cover all Russians but be aimed at the wealthiest.
That is because there’ll be a set limit on how much these people can hold in a UK bank account.
Russia has been frozen out of the international financial system via SWIFT
Boris Johnson has shut off Russian access to the SWIFT system that enables global payments between banks.
This limits Moscow elite’s ability to move their money around the world.
The same sanctions will be imposed on Belarus
“Sanctions will also be applied to Belarus for its role in the assault on Ukraine,” Boris Johnson said.
It’s understood the full range of sanctions listed above will be also extended to Belarus.
UK officials took the decision based on the country’s integration with the Russian military, and on top of existing Belarus sanctions.
A U-turn on the Economic Crime Bill
Boris Johnson will finally speed up measures in his long-awaited Economic Crime Bill after months of protest from MPs.
It had only been due in the next session of Parliament, but now some measures will be brought forward before the Easter recess.
The PM’s official spokesman said: “Before Easter recess we will bring forward legislation previously intended for the Economic Crime Bill to strengthen unexplained wealth orders, to take action against kleptocrats who launder funds in the UK.”
Agencies will have “longer to act in targeting individuals and reduce their exposure to some of the legal costs” of going after these individuals, he added.
Labour had condemned the failure to bring forward the Bill and it was a factor in the resignation of Tory minister ordered Agnew.
Companies boycotting Russia
In addition to the Government imposed sanction, Russia is now being subject to a number of boycotts as large businesses and organisations are cutting ties with the country.
From clothing brads to oil and gas, there are numerous important firms taking action.
Here is a list companies cutting ties with Russia, according to The Mirror.
H&M
H&M has temporarily suspended all sales in Russia due to the invasion of Ukraine.
The world's second-biggest retailer said it was concerned about the developments in Ukraine on Wednesday.
In an official statement, the Swedish retailer said it stands "with all the people who are suffering".
On Wednesday evening, H&M's Russian English-language website was unavailable for customers to place orders.
The retailer currently has more than 150 stores in Russia, according to its 2020 annual report, which will all now be shuttered due to the conflict.
British Gas
British Gas owner Centrica has become the third big British energy firm to cut ties with Russia within a week, echoing BP and Shell by announcing the end of its gas supply agreement with Kremlin-controlled Gazprom.
Gazprom supplies gas to Centrica, which it then sells to British households. The agreement is understood to account for a fraction of what Centrica supplies to its customers in Britain.
Adidas
German sportswear company Adidas suspended its partnership with the Russian Football Union (RFS) on Tuesday.
The company has served as the country's kit manufacturer since 2008, designing the shirts for their home World Cup in 2018.
The decision came after several sports bodies announced plans to cut ties to Russian-affiliated bodies or companies as the death toll continues to escalate in Ukraine.
Wetherspoons
Wetherspoons has stopped selling bottles of Baltika Lager, because of its affiliations with Russia.
The beer, which is brewed in St Petersburg, the birthplace of Vladimir Putin, has been axed in all 870 boozers.
All bottles of the Russian beer - which cost £2.99 - will be returned to distributor Carlsberg.
Wetherspoons said: "In light of the situation in Ukraine we just felt that we could not stock it anymore. "As of today all those beers won't be available in any Wetherspoons pub and either have been or are in the process of being returned to the Carlsberg distributor.
"We are not implying in any way that anyone involved with the brewery is directly involved with what's going on but we thought in light of the current situation our pubs don't want to be serving Russian beers."
BP
On Monday, BP announced plans to offload its 19.75% stake in state-owned Russian oil giant Rosneft "with immediate effect" following the invasion of Ukraine.
The firm's chief executive Bernard Looney also resigned from Rosneft's board along with its other Rosneft director, Bob Dudley.
The statement said Russia's invasion of Ukraine "caused us to fundamentally rethink BP's position with Rosneft".
BP has held the shareholding in the Russian company since 2013.
Apple
Apple has paused all product sales in Russia in response to the country's attacks on Ukraine.
The tech giant was said it was "deeply concerned" about the Russian invasion and stands with those "suffering as a result of the violence".
Apple Pay and other services such as Apple Maps have also been limited.
Apple said: "We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence. Advertisement
"We are supporting humanitarian efforts, providing aid for the unfolding refugee crisis, and doing all we can to support our teams in the region."
Shell
Oil corporation Shell this week announced plans to end all of its joint ventures with Russian energy company Gazprom.
The move will include the oil giant's 27.5% stake in a major liquefied natural gas plant.
Shell's chief executive, Ben van Beurden, said the company was "shocked by the loss of life in Ukraine".
Shell will quit the flagship Sakhalin II facility, which is 50% owned and operated by Gazprom.
It will also sell its 50% stake in two Siberian oilfield projects, as well as end its involvement in the Nord Stream 2 gas pipeline from Russia to Germany, which it helped finance among a mix of other companies. The 1,200km pipeline under the Baltic Sea had already been put on hold by German ministers.
In a statement issued on Monday, Shell said that it expected the move, which will also apply to any "related entities" to Gazprom, would be worth about £2.2billion.
UK bars ditch Russian vodka
A host of UK bars and hospitality firms have stopped the sale of Russian vodka in a move of solidarity with citizens in Ukraine.
Arc Inspirations, the chain behind the Box, Banyan and Manahatta bars, has stopped pouring Russian vodka globally.
Nightcap Group, which is owned by a former Dragon's Den entrepreneur, has also terminated sales of Russian vodka.
Owner Sarah Willingham described the move as a 'little thing' the business could do in response to the conflict.
Ms Willingham said: "The devastation in Ukraine is heartbreaking, and I cannot start to comprehend what it must be like for the people of Ukraine. 'It's hard to sit here in our warm safe homes and do nothing.
"We have donated money, but from a business point of view we (the senior team and the staff) wanted to do something, anything, to show our support and so therefore we have removed all Russian vodka and alcohol from our bars across the whole of the Nightcap estate.
"It's a little thing but the more little things we do, the bigger the impact will be."
Compare the Market
Compare the Market has launched a review into its meerkat advertising campaign to ensure it is not played around news bulletins reporting on the Ukraine war.
The price comparison website said that it was examining its marketing and would be “sensitive” to when it plays the adverts, which feature a Russian meerkat named Aleksandr Orlov.
The character has been described as a billionaire from Moscow who lives in a South London mansion.
A spokesman for Compare the Market said: "The meerkats are fictional characters and not associated with Russia and the current situation. But we're looking at our marketing to make sure we're being sensitive and it doesn't show up in inappropriate places."
Compare the Market launched the campaign featuring the meerkat, whose catchphrase is “simples”, in 2009.
Disney, Warner and Sony
Disney is pausing all movie releases in Russia, including the upcoming Pixar film Turning Red, citing the “unprovoked invasion of Ukraine and the tragic humanitarian crisis”.
“We will make future business decisions based on the evolving situation,” Disney said on Monday.
“In the meantime, given the scale of the emerging refugee crisis, we are working with our NGO partners to provide urgent aid and other humanitarian assistance.”
Turning Red, a family film about a girl who turns into a red panda when she is excited, had been set to premiere in Russia on 10 March.
A few hours after Disney’s decision was announced, Warner Bros said: “In light of the humanitarian crisis in Ukraine, WarnerMedia is pausing the release of its feature film The Batman in Russia. We will continue to monitor the situation as it evolves. We hope for a swift and peaceful resolution to this tragedy.”
Following Disney and Warner Bros, Sony Pictures announced it would also pause all its releases in Russia, including Morbius, which stars Jared Leto as the Marvel antihero and was set to open on 24 March.
“Given the ongoing military action in Ukraine and the resulting uncertainty and humanitarian crisis unfolding in that region, we will be pausing our planned theatrical releases in Russia, including the upcoming release of Morbius,” a Sony Pictures spokesperson said. “Our thoughts and prayers are with all those who have been impacted and hope this crisis will be resolved quickly.”
Other Warner Bros films due to be released in Russia soon included Fantastic Beasts: The Secrets of Dumbledore on 14 April, and the animated DC League of Super-Pets on 19 May.
FA and Fifa
The Football Association has suspended all matches against Russia due to the war in Ukraine. It comes as Fifa stripped Russia of the right to host matches.
A number of footballing bodies have condemned Russia’s attacks in the past week.
In a statement, the FA said: “Out of solidarity with the Ukraine and to wholeheartedly condemn the atrocities being committed by the Russian leadership, The FA can confirm that we won’t play against Russia in any international fixtures for the foreseeable future. This includes any potential match at any level of senior, age group or para football.”
Poland, Sweden and Czech Republic have all refused to play in Russia.
“The military escalation that we are observing entails serious consequences and considerable lower safety for our national football teams and official delegations,” a joint statement from the three teams said.
“Therefore we expect Fifa and Uefa to react immediately and to present alternative solutions regarding places where these approaching play-off matches could be played.”
This season’s Champions League final has been moved from St Petersburg to Stade de France in Saint-Denis.
The final of Europe's most prestigious club competition was due to be played in St Petersburg on 28 May.
Meanwhile, Russia's Formula 1 Grand Prix, due to take place in Sochi in September, has been cancelled.
F1 says it is "impossible" to hold the event in "the current circumstances".
International sports federations should move or cancel their sports events currently planned in Russia or Belarus, the International Olympic Committee said.
Volvo
Volvo has suspended shipments of cars and heavy goods vehicles to Russia in the wake of the country's invasion of Ukraine.
The Swedish car manufacturer cited the "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US" as a factor in the decision.
The firm did not give a time frame for when sales would resume, saying only that "Volvo Cars will not deliver any cars to the Russian market until further notice".
Volvo sold 9,000 cars in Russia last year, importing them from factories in Sweden, China and the US. The overall Volvo Group makes 3% of its global sales in Russia.
Its commercial vehicle sister company, AB Volvo, has also ceased all production and sales in Russia.
The firm builds Volvo and Renault-badged HGVs at a plant in Kaluga, around 100 miles from Moscow, which has been in operation since 2009 and employs some 700 workers.
Netflix
Netflix has refused to broadcast Russian state propaganda, in the face of a law that comes into effect in the country on 1 March.
The law requires streaming services with more than 100,000 daily users to carry 20 major Russian federal television channels, many of which broadcast Kremlin propaganda.
“Given the current situation we have no plans to add these channels to our service,” a Netflix spokesperson said.
MasterCard and Visa
Visa and MasterCard have both blocked a number of Russian financial institutions from their networks, dealing another heavy blow to the country’s economy.
The move complies with US sanctions imposed on Russia following its invasion of Ukraine last week.
Visa and MasterCard together handle 90% of all debit and credit card payments outside of China.
"We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve," Mastercard said in a statement on Monday night.
The US has compiled a list of sanctioned entities, including Russia’s central bank and its second-largest lender, that Visa is required to suspend from its network.
Since 2015, Russia has been building an alternative payment network that does not rely on Visa or MasterCard.
Mir, as it is called, only has a market share of around 30% in Russia however, according to the country’s central bank.
Nike
Nike Inc has suspended all online and app sales in Russia, stating that it cannot guarantee delivery of goods to customers in the country in a statement online.
The update on Nike's website, however, directed its customers to their nearest Nike stores, suggesting branches are still trading as normal.
Asos
Online fashion retailer Asos has stopped shipping goods to Russia and shoppers are currently unable to process any orders on its website.
An Asos spokeswoman said:“ASOS’ priority is the safety of its colleagues and partners in Ukraine and Russia.
“ASOS’ priority is the safety of its colleagues and partners in Ukraine and Russia. Immediately following the invasion, ASOS suspended sales in Ukraine as it became impossible to serve customers there.
"Against the backdrop of the continuing war, ASOS has decided that it is neither practical nor right to continue to trade in Russia, and has, therefore, today suspended sales there. Our thoughts are with the people of Ukraine and all those affected in the region."
Ikea
Ikea has confirmed it will pause all retail operations in Russia in an update on March 3.
The move is expected to affect around 15,000 workers across 14 Ikea stores across the country.
Ikea has also confirmed it will stop all exports and imports in and out of both Russia and Belarus.
"The devastating war in Ukraine is a human tragedy, and our deepest empathy and concerns are with the millions of people impacted," the company said in a statement.
"The immediate actions of Inter IKEA Group and Ingka Group have been to support the personal safety and security of IKEA co-workers and their families, and we will continue to do so."
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