Can someone explain to me about sanctions on Russia?

[DenholmElliot]

I thought that sanctions on Russia meant that things made in Russia aren't allowed to be sold in the UK anymore, ie Russian Vodka.

But now I have read that sanctions doesn't mean it can't be sold here, only that the favourable trading terms have been removed which means it's going to be more expensive. I don't understand how this punishes Russia though?

Can anyone clarify this?

Sanctions vary. Trade in some good is banned. Weapons, metals etc. Other goods have lost favoured trading partner status which means they may be more expensive to buy or sell. Both can affect imports and exports. The general idea is to deprive Russian companies of profits so they cannot pay taxes to the Russian govt, who will use it to finance war.

Other sanctions prevent the transfer of monies between currencies, and between banks.
Some sanctions are against individuals who are close to Putin, so they cannot enjoy the benefit of their assets, or sell or move them. Boats, houses etc.
Sanctions can also be varied e.g. Chelsea football club is allowed to play but cannot generate a profit for the Abramovich. They can spend small amounts but cannot trade players and so on.

Pretty sure the sanctions that are doing the most damage are the hundreds of companies stopping trade there. Western countries froze the assets of russias central bank and suspended it. Something like two thirds of Moscow's $640 billion "war chest" is held in dollars, sterling and euros and now can't be accessed. They also cut russia off from SWIFT meaning they can't access profits from oil and gas, I think 40% of their national revenue.

Things like Instagram and tiktok and Adobe have all been pulled. Freelancers and influencers have lost their income overnight = no income tax and no spending to boost the economy.

Other sanctions include the closing of airspace to all Russian aircraft. Russia has acted likewise so No-one can fly in or out through European/US/British airspace meaning travel options are severely limited.

Putin will find it hard to claim victory when Russian shops are empty, travel is blocked, social media is unavailable and the rouble is worth very little.

I believe it limits exports from russia,

As an aside, not all vodka is made in Russia. Some shops and bars have pulled Russian-made vodka, but it's up to them.

There are lots of different types of sanctions including trade and financial sanctions. They are basically trying to isolate Russia and make it harder for them to function. So the trade sanctions affect both exports and imports, financial ones include asset freezes on people like Abramovic and Putin meaning you can't deal with their funds, but also there are financial measures cutting off access to markets and trade in bonds etc. Also aviation measures, travel bans and linoleum the export of luxury goods.