Action Plan 3.0 Strengthening Sanctions Against the Russian Federation

The goal of this group is to provide the world with ideas on sanctions that will reduce the resources of the Russian Federation and thereby hasten the end of Russia’s invasion of Ukraine. [...] The initial shock of sanctions in 2022 triggered a 1.2% contraction in Russia’s GDP, instead of a predicted growth in the range of 4% in the absence of war and sanctions (based on projections of a “Covid rebound” and robust commodity prices). [...] Since the beginning of the 2022 invasion, approximately 1,000 companies have announced a reduction in operations in the aggressor state, 4 387 of which have made a full exit.5 Generally, the exit of the Western companies and the loss of foreign involvement means reduced transfer of technology, the know-how, and managerial expertise. [...] That means imposing more sanctions on oil, gas, and metals and introducing across-the-board tariffs on imports from Russia to degrade Russia’s economic resilience to the point that, combined with Russian failure to gain ground on the battlefield, will induce a change in the Kremlin’s policy toward ending the war on terms acceptable to the Ukrainian government and people. [...] The Russian banking sector plays a crucial role in financing Russia’s war machine and supporting the occupation of Ukraine, including by financing the Russian government, paying taxes to the Russian federal budget, facilitating all transactions of the Russian military- industrial complex, supporting the circulation of the ruble on the territory of Ukraine, and providing financial services to Russi.