Some EU states have called for freezing Russia's access to Special Drawing Rights of the International Monetary Fund (IMF) as part of the measures to be imposed on Russia, if the tensions around Ukraine escalate, the Financial Times reported on Monday, citing documents
MOSCOW (Pakistan Point News / Sputnik - 01st February, 2022) Some EU states have called for freezing Russia's access to Special Drawing Rights of the International Monetary Fund (IMF) as part of the measures to be imposed on Russia, if the tensions around Ukraine escalate, the Financial Times reported on Monday, citing documents.
According to the media, the United States and European allies brace for what they call the most aggressive package of economic and financial sanctions ever to retaliate against Russia should the invasion of Ukraine occur. Sanctions are planned to disrupt Russia's banking system, energy sector, technology development and target economic elite, which holds assets abroad.
Allies intend to block Russia's access to the IMF's Special Drawing Rights, which act as a reserve Currency, and exclude the country from SWIFT, a global electronic payment network. These steps may undermine Russia's position in the international financial system, and thereby derail its economic capability.
Furthermore, the United States and the European Union reportedly deliberate imposing strict control on exports of Western technology to Russia to impair its industrial base and ability to innovate, including by enforcing the "direct foreign product rule," prohibiting third countries from exporting certain sensitive technologies that contain American components to Russia.
Despite heavy dependence on Russia's energy supplies, the US and allies reportedly are discussing the possibility of imposing sanctions against oil and gas producers and Russian companies in the mining sector, while raising concern over potential countermeasures and a possible collapse in gas supplies to the EU in the event of a war.
The Western allies reportedly believe that merely threatening these measures would be enough to dissuade Russian President Vladimir Putin from attacking Ukraine.
The precarious situation around Ukraine worsened in recent weeks, with NATO deploying additional troops near the Russian border in anticipation of escalation. The European Council announced last week that Moscow would face "massive consequences and severe costs" in the event of a military incursion into Ukraine, with the United Kingdom saying it would adopt new legislation to tighten its sanctions regime and target more Russian companies and individuals.
Russia has repeatedly denied having any intention of invading Ukraine, while raising concerns over increased NATO military activity in Eastern Europe. Moscow reiterates that it has the right to move forces within its own territory, stressing that the move poses no threat to any state and should be of no concern to anyone.
