UN Adopts Sanctions Against Russia
G7 Strengthens Sanctions on 3 Countries Supporting Russia
EU Delays Agreement Due to Member States' Disagreements
[Asia Economy Reporter Lee Ji-eun] As the one-year anniversary of Russia's invasion of Ukraine approaches, the international community has intensified sanctions against Russia, increasing pressure on the country.
On the 23rd (local time), the United Nations General Assembly adopted a peace resolution calling for the immediate withdrawal of Russian troops at an emergency special session held at the UN Headquarters in New York, USA. 141 countries voted in favor, while 7 voted against and 32 abstained. The countries voting against the resolution were Russia, North Korea, Eritrea, Belarus, Mali, and Nicaragua, while China, Iran, and India abstained.
The resolution on peace and principles in Ukraine, led by the United States and the European Union (EU), also included the South Korean government as a co-sponsor.
Although the UN General Assembly resolution is not legally binding, it is significant in reaffirming the international community's unified stance. Given the overwhelming support for the resolution, Russia cannot help but feel the pressure.
The Group of Seven (G7) major countries also plan to announce additional sanctions against Russia on the 24th, marking one year since the war began. The leaders of each country will discuss measures to strengthen support for Ukraine and sanctions against the three countries supporting the war during a video conference on that day.
The United States will unveil the additional sanctions against Russia it had previously announced on the same day. Through these sanctions, the US intends to block Russia's main revenue channels, including its banks and technology industries. The sanctions are expected to target over 200 individuals and independent entities. White House spokesperson Karine Jean-Pierre explained, "The US will impose comprehensive sanctions on key sectors generating revenue for Putin," adding, "This includes more Russian banks, defense and technology industries, and third-country actors attempting to evade our sanctions."
On the 23rd, the EU began discussions on additional sanctions against Russia but failed to reach an agreement due to disagreements among member states. The 10th round of sanctions aims to block the export of 47 components, including antennas and thermal cameras, which Russia could use as weapons. It also includes export bans worth 11 billion euros (approximately 15.12 trillion KRW), and for the first time, companies related to Iran's Islamic Revolutionary Guard Corps, which supplies Russia with "suicide drones," were added to the sanctions list.
If these sanctions pass, Russia will effectively have all major supply routes for key components used in the Ukraine war cut off. However, the agreement reportedly fell through because Poland, a member state, opposed whether to exempt Russian synthetic rubber from sanctions.
As the international community continues to impose stringent sanctions, forecasts suggest that the Russian economy will gradually enter a recession phase. Last year, Western countries imposed about 11,300 sanctions on Russia.
Since the war, the value of the Russian ruble against the dollar has fallen to its lowest level in 10 months since April last year. The implementation of the oil price cap has also caused significant disruptions to energy exports. Russia has traditionally covered half of its fiscal revenue through oil and natural gas sales.
The fiscal deficit is also soaring due to the prolonged war. Major foreign media reported last month that Russia's fiscal deficit rose 59% year-on-year to 1.7619 trillion rubles. Natalia Lavrova of investment bank BCS Global Markets diagnosed, "Russia's fiscal risks are increasing on both the revenue and expenditure sides."
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