US sanctions in case of invasion of Ukraine could completely destroy Russia's economy, NYT reports

Meanwhile, in Britain, officials announcing sanctions said Putin's oligarchs "will have nowhere to hide."

The boldest measures that US President Joe Biden has threatened to deter an invasion of Ukraine could destroy the entire Russian economy. At the same time, they will also affect the economies of other countries. This is reported by The New York Times.

At the same time, senior British officials announcing their package of sanctions said that "Putin's oligarchs will have nowhere to hide."

US sanctions: "Complete destruction of the Russian economy"

The large-scale sanctions that American officials threaten to impose on Russia in case of an invasion of Ukraine could trigger a collapse of the ruble, a crash of the stock market and other forms of financial panic that would "hurt" almost all Russians, from billionaires and officials to ordinary middle-class families.

Measures against Moscow include sanctions against its largest banks and financial institutions, which will inevitably affect the daily lives of Russians.

Former senior official at the State Department's Office of Economic Sanctions Policy during the Obama administration Edward Fishman notes that the sanctions announced by Biden will hit the entire Russian economy and "This will certainly affect ordinary Russians."

Washington plans to "knock out" the pillars on which the entire Russian financial system rests.

The publication suggests that the US strategy involves political and economic risks, because the rapid and harsh anti-Russian response promised by American officials could shake major economies, especially in Europe.

Some analysts also predict that in response to harsh sanctions, Putin could halt natural gas supplies to Europe or carry out cyberattacks on American and European infrastructure.

The United States is currently trying to form a set of measures that will strike Russia as hard as possible while containing economic shock waves around the world, including in the United States.

Economist and author of the Atlantic Council report on US sanctions against Russia Anders Aslund noted that, although Russia has been taking steps since 2014 to rely less on external debt, the consequences of the sanctions announced by Washington will still be devaluation of the ruble, a shock to the stock market and a freeze in bond trading.

For the average Russian, this could mean rising prices for food and clothing, a significant reduction in pensions and the devaluation of savings.

UK sanctions: "Putin's oligarchs will have nowhere to hide"

Britain is preparing to expand sanctions against Russia in the near future, and also plans to double the size of its troop contingent in Estonia as part of the NATO multinational battalion, reports SkyNews.

According to UK Foreign Secretary Liz Truss, updating the sanctions package should strike a wide range of targets so that Russian oligarchs "have nowhere to hide."

Liz Truss
UK Foreign Secretary

Any company of interest to the Kremlin and the regime in Russia could become a target. So "Putin's oligarchs or Russian companies that support the Russian state will have nowhere to hide. This is what we are going to do in the next week.

Truss did not rule out that tougher sanctions could include confiscating London property of Russian oligarchs in Britain. "We will not go into detail about whom exactly and how we will target with sanctions," she warned.

Truss also added that Ukrainians will fight stubbornly, as "they are not going to surrender to Russia easily."

Stopping escalation from the Kremlin is "priority number one" for Britain, Truss said.

Prime Minister Boris Johnson warned of an "increasingly worrying" situation around Ukraine after receiving briefings this week from heads of defense departments.

"I continue to urge Russia to negotiate and avoid a reckless and catastrophic invasion," he said.

Johnson is considering doubling the number of British troops deployed to strengthen Europe's borders, as well as sending fast aircraft, warships and military specialists. According to him, Britain "absolutely rules nothing out" in helping Ukraine, but sending British troops is "unlikely."