Paris, Europe Brief News – The European Union has agreed with other members of the Council of Baltic sea states to suspend Russia and Belarus from the Council’s activities.
The European Union said, “ This decision is a part of the European Union’s and like-minded partners’ response to Russia’s invasion of Ukraine and the involvement of Belarus in this unprovoked and unjustified aggression”.
It further added, “ The EU agrees with the other members of the Council of Baltic sea states ( Finland, Estonia, Denmark, Germany, Iceland, Latvia, Lithuania, Norway, Poland and Sweden) that suspension of Russia and Belarus will remain in force until it is possible to resume cooperation based on respect for basic principles of International law”.
EU Curb Russia’s IMF Rights
This is just another effort from Western Allies and European Union to cripple Russia from Political and economic aspects. This decision came after a day the EU declared that it may curb Russia’s IMF Rights.
European Union Officials have given signs that they are considering restraining Russia from having any influence or access to finance and International Monetary Funds following its invasion of Ukraine.
The European Union is analysing this scenario and putting more pressure on Russia’s economy and financial system. This is another way to force Russia to withdraw its troops from the neighbouring county.
One option that is under consideration by so many officials is to remove Russia from the institution that acts as a lender of last resort. However, European Union officials believe that eliminating Russia from the IMF is a daunting task if not impossible.
One of the Senior Eurozone officials said “ There is discussion going on but kicking Russia out entirely is probably unrealistic because of required quora”.
He further added that are under consideration include the suspension of Russia’s voting rights as well as blocking its access to special IMF currency, the special drawing rights.
Besides the EU suspending IMF rights, US and Western allies have imposed several sanctions on Russia to completely isolate it economically from the world after its assault on Ukraine. Moscow claims its assault is a special military operation.
US and western allies have imposed sanctions to remove 70% of Russia’s banks from the SWIFT payment system, which allows a smooth transfer of money across borders.
The ban will certainly delay the payments that Russia receives for its exports of oil and gas.
