Yermak-McFaul Group presents new action plan for economic pressure on Russia

The International Working Group on Russian Sanctions, headed by Head of the Office of the President of Ukraine Andriy Yermak and Director of the Freeman Spogli Institute for International Studies (FSI), Ambassador Michael McFaul, has presented a new action plan to further tighten sanctions pressure on Russia, Action Plan 3.0.

The relevant statement was made by the Office of the President of Ukraine, an Ukrinform correspondent reports.

The document contains specific steps that can significantly undermine Russia’s economic and military potential to stop its aggression in Ukraine sooner.

“The proposed sanctions measures should become a powerful response of the international community to Russian aggression. The success of the sanctions depends on their collective enforcement and constant strengthening. The measures, stipulated in Action Plan 3.0, are ambitious but achievable, they are designed to drastically limit Russia’s ability to finance its military actions in Ukraine,” Yermak noted.

According to the experts, the package of restrictions will reduce the aggressor’s export revenues by $70-80 billion per annum, cause a significant deficit in Russia’s external trade and its budget, and weaken its currency and overall economic stability.

“We believe that the sanctions proposals, formulated in the new Action Plan, will make Russia pay a higher price for its invasion into our country and will ensure support for democratic Ukraine in defending its territorial integrity and national sovereignty,” Advisor to the Head of the President’s Office, Secretary of Ukrainian Working Group on Russian Sanctions Vladyslav Vlasiuk explained.

The proposed measures include the confiscation of the frozen assets of Russia’s Central Bank, which should be used for Ukraine’s military and economic support and reconstruction efforts. They also include the enforcement of the current oil price cap and the suppression of the shadow fleet of tankers.

The experts propose to introduce a full embargo on uranium, aluminum, and steel, and to resume the work of the Coordinating Committee for Multilateral Export Controls to enforce the ban on exports of critical technologies, equipment, and components, used in the defense and oil and gas sectors, to Russia.

According to the members of the working group, the sanctions list should include more individuals and organizations that support or finance Russian aggression. In addition, it is proposed to impose sanctions on Western companies involved in Russian logistics operations and those that facilitate its circumvention of restrictions.

Separately, the document emphasizes the designation of Russia as a state sponsor of terrorism and the strengthening of control over the existing sanctions.

A reminder that the International Working Group on Russian Sanctions was initiated by President of Ukraine Volodymyr Zelensky.