Sanctions on Russia by C7 Countries

It’s hard not to hand the equivalent to the golden globes or OSCARs to sanctions as the top issue in 2022, with cryptocurrency and transparency of beneficial ownership noteworthy concerns and continued focus of attention in the fight against financial crime. As the Russian tanks rolled into Ukraine on the 24th February 2022, resistance from Ukraine and support from the West has halted the advance and appears to be providing the Ukraine with a viable route to take back their lands and push the Russians back from 21st century importance. Whilst huge credit goes to the Ukraine, the support from in particular C7 Countries has been invaluable. Whilst they don’t share a battlefield with Ukraine they have all seriously stepped up, not least in implementing sanctions. Their is a common consensus and by all accounts a unified approach, but whilst C7 support has been substantial, legacy reliance on Russian oil and gas and is metals exports and domestic economic concerns have limited the ability of the C7 to act in unison in 2022, which is where sanctions have their biggest effect. 

Let’s hope 2023 builds on the foundations in 2022 and the measures taken to protect C7 countries from exiting Russian trade enables even greater consensus going forward. For example as can be seen in the charts above;

  • Chart 1: Their is still plenty of headroom for C7 Countries to sanction Russian targets, already sanctioned by other C7 Countries. Whilst the USA has the largest number of sanctions against Russian targets, greater alignment amongst C7 countries could strengthen sanctions against Russian targets increasing between 27% – 44%. Action 1: increase alignment.
  • Chart 2: C7 Countries need to work more closely together to align sanctions designations. In particular: Australia should work more closely with the EU and Japan but also with the UK to align sanctioned parties designations; Canada should work more closely with Japan but also with the EU, Switzerland and the USA to align sanctioned parties designations; The EU should work more closely with Australia and also with Canada, Japan, USA and the UK to align sanctioned parties designations. Japan should work more closely with Australia, Canada, USA and the UK, as well as the EU & Switzerland. Switzerland should work more closely with Japan and the USA as well as Canada & the UK. The UK should work more closely with Japan and also with Australia, as well as the EU & Switzerland and the USA. The USA should work more closely with Japan and Switzerland, as well as Canada, EU & the UK. Actions 2 – 8: C7 Countries to increase alignment.
  • Chart 3: C7 Countries have targeted key Russian sectors with sanctions. Increased sanctions by C7 countries in sectors where sanctions have yet to be fully implemented can make a significant difference in 2023 for example: increasing sanctions on the imports of: Gas: in Canada, Switzerland, EU, Japan and the UK; Coal: in Australia, Canada & Switzerland; Metals: Australia, Canada, Japan, UK & USA; & Exports of: Metals: Canada, EU, Switzerland, Japan, UK & the USA; Technology from: Australia; Professional Services from: Australia; Russian Banks Correspondent Banking from: Australia, Canada, EU, Japan & Switzerland; Access by Russian Banks to SWIFT from: Australia. Actions 9 – 18: C7 Countries to increase sector sanctions coverage.
  • Chart 4: The USA includes many more entities than other C7 countries, with entities connected to individuals sanctioned whereas other C7 countries are less inclined to identify related entities. Also only the USA has listed Vessels and Aircraft – Other G7 Countries should consider sanctioning and listing entities, vessels and aircrafts connected to sanctioned individuals. Actions 19 – 20: C7 Countries to include more related entities, vessels and aircrafts.

Financial Crime News

16th January, 2023

Main sources for this post are from:

War & Sanctions 2023 Ukrainian Government: See:

Atlantic Council: See: See:

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