• War This is how Putin has built the Russian oligarchy: the financial guard that accumulates 800,000 million euros

The Kremlin did not expect that the response of the European Union and the entire West to its military incursion into Ukraine would be so effective where it hurts the most: economically.

On Monday afternoon, Vladimir Putin ordered an economic lockdown to try to contain the bleeding of his currency, the ruble, which had hit record lows after plummeting almost 30% after the sanctions imposed on the country.

Putin's slam consisted of the express prohibition of transferring foreign currency abroad and forcing its import companies to convert 80% of what they earned outside the country into rubles from January 1, 2022.

The move appears to have had a soothing effect on his currency, at least for now.

After Monday's crash, the ruble remains relatively stable on Tuesday, around 100 units against the dollar.

But the West is not laying down its financial weapons against the Ukraine attacker.

Thus, the French Minister of Finance,

Bruno Le Maire,

stated on Tuesday that the sanctions against Russia for the invasion of Ukraine will cause the collapse of the Russian economy.

"We are going to cause the collapse of the Russian economy. The balance of economic and financial forces is totally in favor of the European Union which is discovering its economic power," Le Maire told France Info radio.

On Monday, the European Union (EU) added oligarchs close to the Kremlin and President Vladimir Putin's spokesman to its sanctioned list.

Among the high-profile figures sanctioned are Putin associates such as

Igor Sechin

, head of state oil giant Rosneft, and

Nikolay Tokarev,

director of Transneft, the state company in charge of pipelines.

Three men included in Forbes' list of Russia's 10 richest were also sanctioned: metals tycoon

Alexei Mordashov,

Alisher Usmanov

and

Gennady Timchenko,

a businessman and personal friend of Putin.

An adviser to French President Emmanuel Macron told reporters on Monday that the imposition of new sanctions is "a priority" and seeks to "increase the cost" of Putin's war, according to Agence France Presse.

The attack does not come only from the flank of its great oligarchs.

Relatively few in number, but with the bulk of their fortunes outside of Russia, to be sure.

Big companies are also cutting their ties with Putin's country.

This is the case of

Shell, BP or the Norwegian Equinor.

Also this Tuesday we learned that

Mastercard

has decided to block several Russian financial institutions after the imposition of sanctions.

The blockade of Russian reserves, to a large extent also located outside Russia, has been key in the financial offensive to surround the Kremlin.

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  • Russia

  • European Union

  • Ukraine

  • Vladimir Putin

  • Emmanuel Macron

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