Foreign investments

Russia prevents foreign investment from leaving the country as sanctions hurt the economy

Witnessing a massive exodus of businesses following its invasion of Ukraine, Russia on Tuesday (March 1st) prevented foreign investment from leaving the country. Announcing the decision, Russian Prime Minister Mikhail Mishustin asked entrepreneurs not to come under “political pressure” when making decisions.

Russia has witnessed a setback in three decades of investment by the West following its military offensive against Kyiv. As foreign governments and organizations roll out sanctions after sanctions and bar banks from the SWIFT money messaging system, foreign companies are looking to get out of the country.

Given the risky environment, Russia’s biggest foreign investor BP Plc on Sunday exited its 20% stake in state-controlled Rosneft, a move that could result in a $25 billion write-off and cut its global oil and gas production by a third, Bloomberg reported.

After BB Plc, Shell Plc ended its partnerships with Gazprom, the state-controlled Sakhalin-II liquefied natural gas facility and its involvement in the Nord Stream 2 gas pipeline project (which Germany has already blocked ), condemning Russia’s “senseless act of military aggression”. Later, Norway’s largest energy company Equinor ASA and France’s Total Energies SE followed suit, causing the Russian ruble to fall.

The United States and the world impose financial sanctions on Russia

On February 28, the United States cut the Russian Central Bank and sanctioned the public investment fund, in brutal retaliation for the Ukrainian invasion. Taking to Twitter, the White House released a statement announcing that the country along with its allies and partners are preventing Russian President Vladimir Putin from accessing its war chest to cushion the blow of their sanctions and fund his invasion of Russia. ‘Ukraine.

The move came days after US President Joe Biden announced that the country would impose a variety of economic sanctions targeting Russian state-owned banks, high-end tech imports as well as a number of wealthy elites and members. of Putin’s inner circle. The United Kingdom and the European Union had previously announced similar sanctions.

Previously, the United States and its allies announced the withdrawal of some Russian banks from SWIFT. Restrictions on the Russian Central Bank target its access to more than $600 billion (Rs 45,419.70 crore) of reserves the Kremlin has. The sanctions have taken the Russian currency to an all-time low against the dollar.

(With agency contributions; Image: AP)