Sanctions on Russia Can Intensify

Canada has imposed sanctions on Russia, intended to impact oligarchs close to Putin in an effort to end Russia’s invasion of Ukraine. But are working class Montrealers taking a hit? 

Many working class people in the West and in Central Asia are seeing the economic effects of sanctions imposed on Russia by numerous countries.

Frédéric Mégret, Professor of Law at McGill University said these sanctions aren’t as intense as they could be, explaining that politicians don’t want to impose too intensely from the start, but make them worse if Russia does not follow the wishes of the West.

Mégret said McGill was discussing the possibility of denying international students from Russia the ability to study at McGill, however, he said there was great push back against this.

As a result of these sanctions, Montrealers will most notably see rising gas prices, as Canada has ended oil exports from Russia, but many will also notice many imports have been limited, including the selling of Russian vodka. 

Mégret said oligarchs are having their bank accounts frozen, sanctions are making it difficult to buy foreign jewelry and yachts. He said that hitting Russian oligarchs is our best hope applying pressure on Russia in order to urge Russian President Vladimir Putin to end the country's invasion in Ukraine.

Half of Russia’s population makes $6,000 US a year or less and will be gravely affected, but so will middle class Russians. The Russian Ruble has crashed, worth 0.012 cents Canadian in March 2022.

Sanctions are intended to hurt oligarchs, but not all of them are facing sanctions.

The Biden administration will not apply sanctions to global investment bank Credit Suisse, a bank which has been supplying resources to autocrats - including Russian oligarchs. 

On March 1, it was reported that Credit Suisse told investors to “destroy documents relating to its richest clients’ yachts and private jets, in an attempt to stop information leaking about a unit of the bank that has made loans to oligarchs who were later sanctioned.”

Credit Suisse employees donated more than $117,000 to President Joe Biden’s 2020 campaign, while Steptoe and Johnson employees – the law firm which represents Credit Suisse – donated almost $140,000 to the campaign.

This is an example of how some oligarchs are slipping through the sanctions.

While Italy recently seized yachts and villas worth $156 million and France said it seized a super yacht worth $120 million owned by a Putin-ally, some oligarchs have been heading to Israel, Dubai and the Maldives via private jet or yacht to escape sanctions.

Canada isn’t the only nation imposing sanctions on Russia, as many nations have halted trade with Russia, from prohibiting the sale of their vodka to no longer exporting oil from the nation.