Invasion would see Russian businesses cut from dollars and pounds – POLITICO

A Russian invasion of Ukraine would result in sweeping economic sanctions against Russian companies, preventing them from trading with US dollars and pounds, British Prime Minister Boris Johnson said on Sunday.

The impact of the sanctions will extend beyond Russian President Vladimir Putin’s inner circle to “all companies and organizations of strategic importance to Russia”, Johnson told the BBC.

“We are going to prevent Russian companies from raising funds in the UK markets and we will even, together with our American friends, prevent them from trading in pounds and dollars,” he said. “It’s going to hit very, very hard.”

The British leader also warned that a conflict in Ukraine could be the “biggest war in Europe since 1945” and lead to a “bloody and protracted conflict”.

But Johnson pushed back against accusations of appeasement by Ukrainian President Volodymyr Zelenskiy, who on Saturday berated the West for not doing enough to punish Moscow.

Britain’s prime minister said economic sanctions would ensure that any “blitzkrieg”, even if initially successful, “does not bear fruit” over time.

While Johnson acknowledged that the UK needed to tackle Russian money in the City of London, he tackled European countries’ dependence on Russian oil and gas.

“The tragedy is that too many countries in Europe continue to absolutely dominate Russian oil and gas. We have to wean ourselves off of that,” he said. “We have a problem with Russian money in the City and we have to deal with it, but the much, much bigger problem is Russian hydrocarbons.”

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Edward L. Robinett