Putin's gas law: New sanctions meet Russia's economy hard!

Putin's gas law: New sanctions meet Russia's economy hard!

In a dramatic turning point, Russian President Vladimir Putin has to change central laws on the gas industry because new US sanctions in his economy move a violent blow. These sanctions that were imposed on November 21 are aimed directly at the Gazpromank - a key bench for Russian gas export. The effects are catastrophic: the ruble is heavily loaded, inflation is high and the key interest rate is around 21 percent, a record high that, according to economists, could continue to rise in December, such as frekn.de reported.

The new sanctions put pressure on Russia because they have been avoided in the past to enable countries in Europe to continue the gas payments to Russia. In response to this, Putin has changed a law that regulates the payment of gas by foreign customers and reduces the dependence on Gazprombank. In the future, alternative banks could be approved for the gas payments, while the details are still unclear, such as Home.Treasury.gov . This could significantly complicate access to Russian gas for many European countries that are still dependent on this energy source.

scope of the sanctions

The extensive sanctions that affect over 50 Russian banks and more than 40 securities registrars aim to further narrow down Russia's access to the international financial system. According to Janet L. Yellen, the US Finance Minister, these measures will further weaken Russia's military capacity and make it difficult for the Kremlin to maintain the financing of his military activities. The aim is to undermine Russia's illegal war effort against Ukraine by suffocating economic connections.

Gazprombank plays a central role in the financing of the war and paying bonuses to soldiers. In view of the sanctions now carried out, the pressure on Russia will increase to find alternative financing channels in order to continue to support its military activities. The Russian economy and its financial institutions face considerable challenges in a political climate.