World powers impose fresh sanctions after 'Russia's invasion of Ukraine', Germany halts gas pipeline project

Western powers have long made clear that the fate of Ukraine wasn't worth a direct military confrontation with Russia and the potential of a world war, so sanctions were the only limited option.

UNITED NATIONS: Responding swiftly to Russian President Vladimir Putin's order sending troops to separatist regions of Ukraine, world leaders have hit back with non-military actions against Moscow in hopes of averting a full-blown war in Europe.

Germany

Germany made the first big move, taking steps to halt certification of the Nord Stream 2 gas pipeline from Russia, a massive, lucrative deal long sought by Moscow but criticized by the US for increasing Europe's reliance on Russian energy supplies.

United States 

In Washington, US President Joe Biden announced financial sanctions as punishment for what he called ‘the beginning of a Russian invasion of Ukraine.’ The sanctions will hit Russian financial institutions and oligarchs. He said the US would impose ‘full blocking’ on two large Russian financial institutions and ‘comprehensive sanctions’ on Russian debt.

“That means we've cut off Russia's government from Western finance,” Biden said. “It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either.” Biden promised that more sanctions would be coming if Putin proceeds further.

European Union 

The European Union announced sanctions taking aim at the 351 Duma legislators who voted in favour of recognizing separatist regions in Ukraine, as well as 27 other Russian officials and institutions from the defence and banking world. They also sought to limit Moscow's access to EU capital and financial markets.

“This package of sanctions” will hurt Russia and it will hurt a lot,” EU foreign policy chief Josep Borrell said after chairing a meeting of EU foreign ministers in Paris. We will make it as difficult as possible for the Kremlin to pursue its aggressive policies, said EU Commission President Ursula von der Leyen.

UK

Outside the EU, British Prime Minister Boris Johnson named five Russian banks and three wealthy individuals whom the UK hit with sanctions on Tuesday.

Canada

Canada also announced a series of new sanctions against Russia on Tuesday in response to Russian President Vladimir Putin`s decision to recognize the independence of two separatist regions in Ukraine.

The sanctions include banning Canadians from all financial dealings with the breakaway states known as Luhansk and Donetsk. Canadians also will be barred from purchasing Russian sovereign debt and dealing with two state-backed Russian banks. 

Moreover, Ottawa will also sanction members of the Russian parliament who voted to recognize the separatist regions

Japan

Japan's PM announced sanctions targeting Russia and two separatist Ukrainian regions recognised as independent by Russian President Vladimir Putin, joining an international effort seeking to pressure Russia to return to diplomatic solutions. Prime Minister Fumio Kishida said on Wednesday that his government will ban the new issuance and distribution of Russian government bonds in Japan in response to the 'actions' Russia has been taking in Ukraine.

He said Japan will also suspend visa issuance to the people linked to the two Ukrainian rebel regions and freeze their assets in Japan and will ban trade with the two areas.

NATO

And if Putin pushes further into Ukraine, NATO chief Jens Stoltenberg insisted, “there will be even stronger sanctions, even a higher price to pay.” Western leaders said Putin's moves in Ukraine violated countless international agreements, and since diplomacy had failed it was time for action.

Western powers have long made clear the fate of Ukraine wasn't worth a direct military confrontation with Russia and the potential of a world war, so sanctions were the limited option.

“No lows too low, no lies too blatant, no red lines too red to cross,” Lithuanian Prime Minister Ingrida Simonyte said in summing up the political disgust for Putin's actions felt by nations from Europe to North America and the democracies hugging Russia's borders in Asia such as Japan and South Korea.

However, Putin continued to knock the world off-kilter with a strategy in which confusion about the true extent of an invasion worked to his advantage. Russia said it was sending what it called “peacekeepers" into eastern Ukraine, but EU foreign policy chief Borrell stressed they were “troops” on sovereign Ukrainian territory. I wouldn't say that's a fully-fledged invasion, but Russian troops are on Ukrainian soil, Borrell said.

British Defence Secretary Ben Wallace didn't mince words. “Russia has already invaded Ukraine. They did it in 2014, occupied illegally Crimea and Donbas. This is a further invasion of their sovereign territory," Wallace said.

Whatever the description, the latest developments were enough to push the 27-nation bloc into a mode of high alert, and the EU's foreign ministers stressed the sanctions announced Tuesday were done in close consultation with the United States and other Western allies. They stopped short of the “massive” package threatened by the EU and Washington for a full military invasion into national territory that Kyiv still controls.

Too much too soon, though, could hurt the international response, said Britain's Johnson. “This the first tranche, the first barrage of what we are prepared to do, and we hold further sanctions at readiness to be deployed,” he told British lawmakers. Biden's announcement appeared to hold in reserve some of the broadest and toughest of the penalties considered by the United States. 

The two major Russian banks targeted by the US Sanctions are Vnesheconombank (VEB) and Promsvyazbank Public Joint Stock Company (PSB). VEB is crucial to Russia's ability to raise funds, and PSB is critical to Russia's defence sector. Among the oligarchs and others close to Putin cited for sanctions are Denis Bortnikov a deputy president of Russian-state owned VTB Bank, and Petr Fradkov, chairman and CEO of PSB.

The VTB official's father Aleksandr Bortnikov, director of the Federal Security Service and a permanent member of the Security Council of the Russian Federation, was also cited in the sanction lists. Fradkov is the son of Mikhail Fradkov, a former Russian prime minister and former director of Russia's foreign intelligence service.

Sergei Kiriyenko, Putin's first deputy chief of staff, and his son Vladimir Kiriyenko, who is the CEO of the parent company of Russia's top social media platform, VKontakte, were also designated.

Hopes are dwindling that a major conflict can be averted. Putin's directive came hours after he recognized the two Ukrainian separatist regions as independent, setting up Russian military support and antagonizing Western leaders who regard his actions as a breach of world order.

Putin has blamed NATO for the current crisis and called the US-led alliance a threat to Russia. The global condemnation came amid rising skirmishes in the eastern regions of Ukraine that Western powers believe Russia could use as a pretext for an attack on the Europe-leaning democracy that has defied Moscow's attempts to pull it back into its orbit.

With an estimated 150,000 Russian troops massed on three sides of Ukraine, the US has warned that Moscow has already decided to invade. Still, Biden and Putin tentatively agreed to a possible meeting brokered by French President Emmanuel Macron in a last-ditch effort to avoid war.