cross-posted from: https://mander.xyz/post/43056816

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The E.U. blacklisting will further isolate Russia’s financial system, making cooperation significantly riskier for foreign banks and investors. “In practical terms, landing on this list serves as a global warning: engaging with this country entails serious risk,” Shumanov explained. He pointed out that the designation will force even “friendly countries” like China and Turkey to curb Russia-linked operations to avoid “ending up among the pariahs or rogue states that assist those on these blacklists.” Credit-rating agencies may incorporate the blacklist status into sovereign credit assessments, reducing Russia’s access to investment, technology, and partnerships. “Entire industries face long-term contraction,” Shumanov explained.

Inclusion among countries like Myanmar, Mali, Kenya, South Africa, Venezuela, and Syria has nothing to do with attracting investment or developing global commerce. Instead, Shumanov said, it signals Russia’s erasure from numerous investment programs and bars Russian businesses from prospective projects, largely because numerous governments closely track European economic policy.

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