The US and European sanctions against the Kremlin have exceeded the expectations of many, including, probably, those close to Russian President Vladimir Putin. Their influence crushed the Russian financial system, collapsed the ruble, provoked a very likely default, and also sent the Russian economy in the direction of depression.. "

The impact on industrial production and critical imports due to semiconductor export restrictions could also be very profound.. The Kremlin's reaction has exacerbated long-standing Russian isolation (and therefore stagnation) due to the imposition of controls on corporate and individual capital.. Russian companies are required to turn over a significant part of their foreign currency to the central authorities, as well as pay creditors in rubles (and this will lead to default).

Brian O'Toole, former senior adviser to the director of the Office of Foreign Assets Control at the US Treasury Department, and Daniel Fried, former senior adviser to the director of the Office of Foreign Assets Control at the US Treasury, write about this in an article for the Atlantic Council.. They recall that recently the US and UK also announced a ban on Russian oil imports, which was the first major blow to the Kremlin's lifeblood.. Meanwhile, the EU is considering restrictions on Russian gas purchases.. In less than two weeks, Putin's war returned Russia to the Soviet level of economic isolation, but in a much more integrated world.. This is a disaster for the Russian people.

The Joe Biden administration prepared sanctions in advance and introduced the first package before February 25. And then a day later strengthened it by blocking two-thirds of the pre-war Russian foreign exchange reserves ($630 billion). Therefore, the authors note that this amplification occurred faster than expected.. The rest of Russia's reserves (cash, gold, Chinese bonds) are too meager to fill all the huge holes caused by Western sanctions..

However, Putin's forces continue their attack, targeting civilian and non-military infrastructure despite growing irritability in the US, Europe and beyond.. Therefore, the West needs to continue to develop options for strengthening sanctions to match Putin's escalation of violence.. There is still room for this before the level of all restrictions can be compared with those introduced against Iran and the DPRK..

What is left on the menu for strengthening sanctions? The authors provide several proposals, arranged in ascending order (with the exception of a potential European restriction on Russian energy purchases, their impact is unlikely to be as effective as everything already introduced).

Suggestion One: Hit Putin's Oligarchs, Henchmen, Wallets, and Assets. The West has already taken a hesitant step in this direction, hitting only a few Russian oligarchs.. In theory, this was done with the hope of splitting the billionaires from Putin's orbit.. The idea that the oligarchic class in Russia would rise up and make the Kremlin behave better on its own has always been dubious and unlikely.. At the same time, these billionaires, especially those close to Putin and the Kremlin, still remain attractive targets for sanctions due to their large role in the Russian economy and Putin's kleptocracy.. The arrest of the yacht for 600 million dollars against the backdrop of destruction in Ukraine was only symbolic. But such symbols could help sow uncertainty and panic in Russian markets and undermine confidence in the Russian economy.. Such sanctions will show Putin's henchmen and subordinates that he has become harmful to their interests and their families..

Proposal Two: Extend Sanctions Against Companies. Since 2014, the Russian financial and defense sectors have been hit hard. But the West can still target other businesses close to the Kremlin or vulnerable to collateral risks.. The state-owned Gazprombank and Rossselkhozbank, as well as the private Alfabank, are already dealing with financial constraints.. But they could still fall victim to new total lockdowns that cut off their international financial system.. This also applies to transport companies such as Sovcomflot and Russian Railways, as well as the diamond mining company ALROSA.. Also, the main Russian insurer SOGAZ was under EU sanctions, but not the US. The authors note that there is still a significant part of the private and public sectors of the economy that can become attractive targets for strikes..

Proposal three: impose sanctions against the Russian stock exchange. The West has already largely cut Russia off from access to foreign capital markets. If he also wants to blow up domestic markets, then sanctions against the Moscow Exchange could open the way to more market turmoil.. It will also prevent Western and Chinese firms from buying Russian assets for next to nothing and keeping them for years.. Such purchases will not actually provide the capital needed by Russian companies.. However, they will send an obscene signal at a time when Western business is withdrawing from Russia..

Fourth proposal: block the Russian government. To do this, it will be necessary to impose sanctions on all state-owned companies in the country.. Many already under restrictions. But a complete lockdown further isolates Putin and his sources from the global economy.. The Russian government will be on the same level with the authorities of Cuba, Iran, North Korea and Syria. The move will require some sort of compensatory mechanisms so as not to cause turmoil in energy markets.. After all, the giants Gazprom and Rosneft are state-owned companies. However, such sanctions can be quite effective..

Fifth proposal: ban new investment in Russia. On Tuesday, the White House has already banned investing in Russian energy projects.. And a logical strengthening scenario would be to expand this ban to the entire Russian economy. It is concentrated in a small number of key companies in the most profitable sectors.. And if those targets are devastated, a ban on new investment could be a compromise for Western politicians unwilling to impose a full embargo.. Since cuts in energy purchases and a ban on the export of Russian raw materials are already affecting key areas of Western trade with Russia, the investment move will not hurt the West too much..

Sixth proposal: implement a complete financial embargo. This will mean a ban on all transactions, exports and imports to Russia. This will be the West's last major move to eliminate Russia from the global economy. At this point, Moscow will be under the so-called " A few weeks ago, such a move was hard to imagine.. But given the almost insane tightening of sanctions, the West could get closer to that point faster than expected if it doesn't abandon its violent overseas ambitions..

And the seventh tip: hit the sanctions evaders. After the introduction of all restrictions, it will be important to maintain this mode.. The US, UK and EU must understand that the Russians will try to get away with creating fake front companies. This will be a long term challenge.. And the Biden administration will have to maintain intense, real-time consultations with allies on compliance and common approaches..

If the Ways seriously consider a diplomatic exit from the war, sanctions easing could be a " US Deputy Secretary of State Victoria Nuland recently outlined the conditions for lifting sanctions: the withdrawal of Russian troops from Ukraine and participation in the reconstruction of the country. The problem of lifting or suspending sanctions will be difficult, especially since Putin's promise to honor any agreements with Ukraine cannot be trusted.. Putin expressed regret over the collapse of the USSR. But he may find out that Russians, accustomed to the fruits of globalization, do not want him back..