The G-7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union) released a joint statement on May 8, 2022 emphasizing their continued solidarity with Ukraine and announcing new sanctions being put in place or finalized by member countries. See White House Briefing Room, G7 Leaders’ Statement, May 8, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/08/g7-leaders-statement-2/. Paragraph 12 of the statement reviews the new sanctions G-7 members are pursuing.

“12. Our unprecedented package of coordinated sanctions has already significantly hindered Russia’s war of aggression by limiting access to financial channels and ability to pursue their objectives. These restrictive measures are already having a significant impact on all Russian economic sectors – financial, trade, defence, technology, and energy – and will intensify pressure on Russia over time. We will continue to impose severe and immediate economic costs on President Putin’s regime for this unjustifiable war. We collectively commit to taking the following measures, consistent with our respective legal authorities and processes:

“a. First, we commit to phase out our dependency on Russian energy, including by phasing out or banning the import of Russian oil. We will ensure that we do so in a timely and orderly fashion, and in ways that provide time for the world to secure alternative supplies. As we do so, we will work together and with our partners to ensure stable and sustainable global energy supplies and affordable prices for consumers, including by accelerating reduction of our overall reliance on fossil fuels and our transition to clean energy in accordance with our climate objectives.

“b. Second, we will take measures to prohibit or otherwise prevent the provision of key services on which Russia depends. This will reinforce Russia’s isolation across all sectors of its economy.

“c. Third, we will continue to take action against Russian banks connected to the global economy and systemically critical to the Russian financial system. We have already severely impaired Russia’s ability to finance its war of aggression by targeting its Central Bank and its largest financial institutions.

“d. Fourth, we will continue our efforts to fight off the Russian regime’s attempts to spread its propaganda. Respectable private companies should not provide revenue to the Russian regime or to its affiliates feeding the Russian war machine.

“e. Fifth, we will continue and elevate our campaign against the financial elites and family members, who support President Putin in his war effort and squander the resources of the Russian people. Consistent with our national authorities, we will impose sanctions on additional individuals.”

The U.S. released a fact sheet on its new sanctions. See White House Briefing Room, FACT SHEET: United
States and G7 Partners Impose Severe Costs for Putin’s War Against Ukraine, May 8, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/08/fact-sheet-united-states-and-g7-partners-impose-severe-costs-for-putins-war-against-ukraine/. In the fact sheet, the U.S. outlines the sanctions it is imposing in this latest round.

“Targeting State-Controlled Media Within Russia That Bolster Putin’s War. The United States will sanction three of Russia’s most highly-viewed directly or indirectly state-controlled television stations in Russia – Joint Stock Company Channel One Russia, Television Station Russia-1, and Joint Stock Company NTV Broadcasting Company. All three stations have been among the largest recipients of foreign revenue, which feeds back to the Russian State’s revenue.

“Banning Services that Help Finance Putin’s War and Aid Sanctions Evasion. The United States will prohibit U.S. persons from providing accounting, trust and corporate formation, and management consulting services to any person in the Russian Federation. These services are key to Russian companies and elites building wealth, thereby generating revenue for Putin’s war machine, and to trying to hide that wealth and evade sanctions. This action builds on previous prohibitions to restrict the export of goods related to aerospace, marine, electronics, technology, and defense and related materiel sectors of the Russian economy.

“Cutting off Imports of Russian Oil and Reducing Dependence on Russian Energy. The United States has already banned the import of Russian oil, gas, and coal. Today, the entire G7 committed to phasing out or banning the import of Russian oil. This will hit hard at the main artery of Putin’s economy and deny him the revenue he needs to fund his war. The G7 also committed to work together to ensure stable global energy supplies, while accelerating our efforts to reduce dependence on fossil fuels.

“Impose further export controls and sanctions to degrade Russia’s war efforts.  The United States will issue a new rule that imposes additional restrictions on Russia’s industrial sector, including a broad range of inputs and products including wood products, industrial engines, boilers, motors, fans, and ventilation equipment, bulldozers, and many other items with industrial and commercial applications. These new controls will further limit Russia’s access to items and revenue that could support its military capabilities. The United States also sanctioned Limited Liability Company Promtekhnologiya, which produces rifles and other weapons that have been used in military operations in Ukraine; seven shipping companies, which own or operate 69 vessels; and one marine towing company. The Nuclear Regulatory Commission will also suspend general licenses for exports of source material, special nuclear material, byproduct material, and deuterium to Russia.

“Impose Sanctions on Russian Elites and their Family Members and Visa Restrictions on Russian and Belarusian Officials Undermining the Sovereignty, Territorial Integrity, or Political Independence of Ukraine. The United States imposed approximately 2,600 visa restrictions on Russian and Belarusian officials in response to their ongoing efforts to undermine the sovereignty, territorial integrity, or political independence of Ukraine. Additionally, the United States issued a new visa restriction policy that applies to Russian Federation military officials and Russia-backed or Russia-installed purported authorities who are believed to have been involved in human rights abuses, violations of international humanitarian law, or public corruption in Ukraine. The United States also sanctioned eight executives from Sberbank– the largest financial institution in Russia and uniquely important to the Russian economy, holding about a third of all bank assets in Russia; twenty-seven executives from Gazprombank – a prominent Russian bank facilitating business by Russia’s Gazprom, one of the largest natural gas exporters in the world; and Moscow Industrial Bank and its ten subsidiaries.”

Canada’s Prime Minister was in Kyiv on May 8th and met with the Ukrainian President. Canada also announced new sanctions. See Canada Prime Minister Justin Trudeau, Prime Minister visits Kyiv, Ukraine, May 8, 2022, https://pm.gc.ca/en/news/news-releases/2022/05/08/prime-minister-visits-kyiv-ukraine; Radio Free Europe/Radio Liberty’s Ukrainian Service, Canadian Prime Minister Announces New Military Aid, Sanctions After Meeting In Kyiv With Zelenskiy, May 8, 2022, https://www.rferl.org/a/ukraine-zelenskiy-trudeau-weapons-equipment-canada/31840100.html (“‘Today, I’m announcing more military assistance, drone cameras, satellite imagery, small arms, ammunition, and other support, including funding for demining operations,’ Trudeau said. ‘And we’re bringing forward new sanctions on 40 Russian individuals and five entities, oligarchs, and close associates of the regime in the defense sector, all of them complicit in Putin’s war,’ in a reference to Russian President Vladimir Putin.”). Canada is also granting duty free treatment to Ukrainian goods for the next year. Canada was the first G-7 country to announce a ban on energy imports from Russia.

The United Kingdom similarly announced additional sanctions and duty free treatment for Ukrainian imports under the U.K.-Ukraine FTA. See Government of the United Kingdom, Press release
UK punishes Putin with new round ofsanctions on £1.7 billion of goods, May 8, 2022, https://www.gov.uk/government/news/uk-punishes-putin-with-new-round-of-sanctions-on-17-billion-of-goods. A section of the press release is copied below.

“The UK is today announcing a new package of sanctions on Russia and Belarus targeting £1.7 billion worth of trade in a move designed to further weaken Putin’s war machine.

“It will bring the total value of products subjected to full or partial import and export sanctions since Russia’s illegal invasion of Ukraine began to more than £4 billion.

“The sanctions announced today by the International Trade Secretary and the Chancellor of the Exchequer include import tariffs and export bans.

“The new import tariffs will cover £1.4 billion worth of goods – including platinum and palladium – hampering Putin’s ability to fund his war effort.

“Russia is one of the leading platinum and palladium producing countries and is highly dependent on the UK for exports of platinum and palladium products.

“Meanwhile, the planned export bans intend to hit more than £250 million worth of goods in sectors of the Russian economy most dependent on UK goods, targeting key materials such as chemicals, plastics, rubber, and machinery.”

The European Commission has proposed phasing out imports of Russian crude oil within six months and all refined oil products by the end of 2022 with some possible exceptions. The European Parliament and European Council still have the proposal under consideration. See EC Press Release, Speech by President von der Leyen at the EP Plenary on the social and economic consequences for the EU of the Russian war in Ukraine – reinforcing the EU’s capacity to act, Strasbourg, 4 May 2022, file:///C:/Users/tps/Downloads/Speech_by_President_von_der_Leyen_at_the_EP_Plenary_on_the_social_and_economic_consequences_for_the_EU_of_the_Russian_war_in_Ukraine___reinforcing_the_EU_s_capacity_to_act%20(1).pdf. EC President von der Leyen’s proposal on sanctions is copied below.

“Today, we are presenting the sixth package of sanctions. First, we are listing high-ranking military officers
and other individuals who committed war crimes in Bucha and who are responsible for the inhuman siege of the city of Mariupol. This sends another important signal to all perpetrators of the Kremlin’s war: We know who you are, and you will be held accountable. Second, we de-SWIFT Sberbank – by far Russia’s largest bank, and two other major banks. By that, we hit banks that are systemically critical to the Russian financial system and Putin’s ability to wage destruction. This will solidify the complete isolation of the Russian financial sector from the global system. Third, we are banning three big Russian state-owned broadcasters from our airwaves. They will not be allowed to distribute their content anymore in the EU, in whatever shape or form, be it on cable, via satellite, on the internet or via smartphone apps. We have identified these TV channels as mouthpieces that amplify Putin’s lies and propaganda aggressively. We should not give them a stage anymore to spread these lies. Moreover, the Kremlin relies on accountants, consultants and spin doctors from Europe. And this will now stop. We are banning those services from being provided to Russian companies.

“My final point on sanction: When the Leaders met in Versailles, they agreed to phase out our dependency on Russian energy. In the last sanction package, we started with coal. Now we are addressing our dependency on Russian oil. Let us be clear: it will not be easy. Some Member States are strongly dependent on Russian oil. But we simply have to work on it. We now propose a ban on Russian oil. This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined. We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimises the impact on global markets. This is why we will phase out Russian supply of crude oil within six months and refined products by the end of the year. Thus, we maximise pressure on Russia, while at the same time minimising collateral damage to us and our partners around the globe. Because to help Ukraine, our own economy has to remain strong.”

The unprovoked war has created major challenges for the global trading system as reviewed in earlier posts particularly in food security for many countries, and in energy and fertilizers. The countries imposing sanctions and providing security and economic assistance to Ukraine are attempting to secure the multinational order that has preserved peace in Europe and many other parts of the world for the last 70+ years. Imposing costs on the Russian Federation and Belarus for their conduct and the unmentionable atrocities will continue and will likely increase as the brutal war started by Russia likely will last for some time yet.