Economic sanctions
Reference: Live mint
What are Economic Sanctions?:
Economic Sanctions are Restrictions or penalties that are being Levied upon any Country to modify their Decisions
This Includes withdrawal of Customary Trades and Financial Relations for Security and Foreign Policy Necessities Result of Economic Sanction: Sanctions could result in cutting down Most of the Financial Activities
Such as Financial Support, Terms of Trade, Travel Bans, and Assets Freezing as well as Trade restrictions These Sanctions can be Targeted Economic Groups, Certain Businesses as well as Individual People which can cause serious Trouble to the Sanctioned Country (Targeted)
How can Sanctions affect the Economy of a Country?
Can a Country sustain being a Closed Economy for Long? Can a Country like Russia contribute 34% of the World's GDP? The food chain gets disrupted as well as Services get Disrupted. Exports will see No light with the sanctions Even the Domestic economy gets Affected Seriously if it depends upon the Raw Material in their Business Production Risk Element is higher for the Domestic economy especially when a Country Faces Curbs from Organizations like Organization for Economic Cooperation and Development (OECD) and North Atlantic Treaty Organization (NATO)
Economic Sanctions against Russia
All Major Russian Banks have been Banned from SWIFT Financial Messaging Services and frozen their Assets Sanctions have been issued on the Russian Direct Investment Fund and Some Important (Rich) People have been banned. Accessing to Air Space has been denied
India Stand On this
Russia cannot be ignored as an Ordinary Economy because It has Rich Oil Reserves and it supplies Major defence Products to India So India is keeping itself Distant from Voting against Russia
Sanctions Against Russia from Financial messaging Platform like SWIFT could Affect the Foreign Institution Participation in the share sale of Life Insurance Corporation of India (LIC) US Investors who have Investments in Russian Banks are not willing to withdraw any Securities and Invest in something else like LIC Government of India is planning to sell 55 shares of Largest Insurer of the Country LIC, With this Government can Raise worth of 75,000 Crores
