In addition to the military escalation, international sanctions on Russian hostilities increased even more. The full sanctions regime imposed on Russia has probably been the heaviest ever imposed on any country. As for where sanctions stand, global support for removing Russia from the SWIFT payment network has gained traction, once considered not even an option. Known for its impartiality and hosting international peace talks, Switzerland is also among the countries that have decided to impose sanctions on Russia.
The US, in concert with its Western allies, has imposed sanctions on Russia's central bank and Russia's sovereign wealth fund. Transactions with the Central Bank of Russia (CBR) and the Russian Direct Investment Fund are now prohibited in the United States and most of Western Europe. In addition, the foreign exchange reserves of the Central Bank of Russia, perhaps the most severe of the sanctions imposed on Russia, are largely frozen and inaccessible.
On the other hand, steps were taken towards Ruble bonds and the Russian MB announced that coupon payments would not be made to foreign investors. The course of war and default will do much more damage. There are measures announced to stabilize the Ruble (importers keeping their incomes at 80% Ruble, 10K USD limit for money transfer abroad, interest increase etc.). Putin's counter-sanctions range from, more importantly, to transferring foreign currency, as Russian citizens are no longer allowed to send foreign currency abroad. Putin's restriction applies to debt service and could put Russia's entire external debt load at risk of default. When we look at the reasons for the market uneasiness, we can see the ignorance of the results of the war between Russia and Ukraine, the danger of integrating the increasing inflationary risks with the effect of the economic crisis, and the uncertain policy evolutions of the Central banks.
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