SANCTIONS THE U.S. AND EU COULD IMPOSE ON RUSSIA

1. Increased military support for Ukraine
2. Bolstering of NATO’S eastern flank (Romania, Lithuania, Latvia, Estonia, Hungary, Slovakia, the Czech Republic and Bulgaria)
3. More restrictions on Russia’s ability to refinance its sovereign debt (Russian debt market disrupted)
4. Sanction the secondary market in Russian bonds, where they are resold and packaged with other investments.
5. Limits on interbank operations of major Russian banks including currency conversion (Bank operations, cross-border financing, trade impeded)
6. Travel bans and asset freeze on Russian politicians
7. Putting an end to visa-free travel for diplomatic passport holders.
8. Sanctioning the Nord Stream 2 pipeline between Russia and Germany to prevent it becoming operational
9. Cancelling gas contracts
10. Full-blocking sanctions on large Russian banks, energy companies, or defense firms
11. Banning EU transactions with private Russian banks
12. More sanctions on companies on energy sector including coal and defense sectors (Transactions, possibly exports and financing limited)
13. Restrictions on certain technology exports to Russia — including those related to the telecommunications and chemicals industries —
14. New sanctions regime on hybrid attacks
15. Sweeping prohibitions on investment and provision of services to conventional Russian oil projects. Two possible financial targets are the huge VTB Bank, and Gazprombank.
16. Add more Putin-friendly oligarchs to a blacklist to be appended to the defence budget. Family members of Putin’s circle could also be more extensively targeted.
17. Exclude Russia from the global electronic payment system, Swift making Russia a pariah in international finance (Global markets for oil, gas, other commodities, as well as Russian markets disrupted)

Note

1. EU countries, such as Germany who have a high dependence on Russia for energy and other products, will be attempting to shape the sanctions to best suit their own economies.
2. Berlin will be reluctant to risk a cut-off of Russian natural gas supplies, on which it is highly dependent for its businesses as well as households in winter. 
3. There are a range of sensitivities across the EU member states as well as the UK, which is also committed to the sanctions. Those nearer Russia have an energy dependency, those further west have more general trade concerns.
4. There will be difficulty in getting the right balance.

Trade Picture with Russia

• Russia is the EU's fifth largest trade partner, representing 4.8% of the EU’s total trade in goods with the world in 2020.  
• The EU is Russia's biggest trade partner, accounting for 37.3% of the country’s total trade in goods with the world in 2020. 36.5% of Russia’s imports came from the EU and 37.9% of its exports went to the EU.
• Russia is the origin of 26% of the EU’s oil imports and 40% of the EU’s gas imports. Energy price volatility directly affects the volume of bilateral trade.
• Total trade in goods between the EU and Russia in 2020 amounted to €174.3 billion. The EU’s imports were worth €95.3 billion and were dominated by fuel and mining products – especially petroleum (€67.3 billion, 70.6%), agriculture and raw materials (€4.3 billion, 4.5%), chemicals (€4.1 billion, 4.3%) and iron and steel (€4.0 billion, 4.1%). The EU’s exports totalled €79.0 billion. They were led by machinery and transport equipment (€35.0 billion, 44.1%), chemicals (€16.7 billion, 21.1%), and manufactured goods (€7.6 billion, 9.6%) as well as agriculture and raw materials (€6.9 billion, 8.7%).
• Two-way trade in services between the EU and Russia in 2020 amounted to €27.7 billion, with EU imports of services from Russia representing €8.9 billion and exports of services to Russia accounting for €18.8 billion.
• The EU is the largest investor in Russia. In 2019, the EU’s outward foreign direct investment (FDI) stock in Russia amounted to €311.4 billion, Russia’s FDI stock in the EU was estimated at €136 billion.