How Western Sanctions Against Russia For ‘LPR’ Will Directly Affect Belarusian Economy

• 22.02.2022, 17:15

The expert named the main areas.

What kind of sanctions will Western countries take against Russia and how will this affect Belarus? This largely depends on the situation on the line of contact between Ukrainian forces and representatives of the “LPR”. This opinion was expressed by the program director of the Russian International Affairs Council Ivan Timofeev for Office life.

The expert noted the following: if there is an escalation of armed confrontation on the line of contact, then tougher sanctions are possible. For example, there may be restrictions for Russian banks. Including the complication of transactions in foreign currencies, primarily in dollars.

The second sector where sanctions can be expected is mining. These are oil, coal and ores. As for gas, as Ivan Timofeev noted, the situation is specific. In this area and energy, Western countries will only make decisions that they themselves will not suffer from.

If there is a relatively peaceful end to the current international crisis, then sanctions should also be expected, but more moderate.

Banks and the oil business are among the Russian sectors named by the expert in Belarus. Subsidiaries of SBER (Sber Bank), Gazprombank (Belgazprombank), VEB operate in the republic. RF (JSC Belvnesheconombank, aka BelVEB Bank), VTB (VTB Bank), etc. They are included in the list of systemically important ones. Each bank has affiliated structures operating in related sectors.

For example, BelVEB has a Finstore platform through which companies raise money by issuing tokens. These are not only local businesses, but also legal entities, for example, from Kazakhstan.

It is also important to note that the Belarusian economy is strongly tied to the Russian one. The fall of the Russian ruble and the collapse of securities will affect Belarus.