Sanctions, aid and frozen markets: the economic picture on 17 March 2022
A look back at the financial measures in force on 17 March 2022, from Washington's aid package to restrictions on Russian trade, banking and share trading.
What did the economic backdrop to the war look like on 17 March 2022? Reports from the preceding days show a mix of Western financial support for Ukraine and mounting pressure on Russia's economy.
On 15 March, U.S. President Joe Biden signed a $1.5 trillion budget bill that included $13.6 billion in aid for Ukraine.
Four days earlier, on 11 March, Biden announced that he would revoke Russia's most favoured nation trade status, acting in coordination with the European Union and the Group of Seven. The U.S. would also ban imports of Russian seafood, alcohol and diamonds, forbid new investment in Russia by American citizens, and criminalise the export of U.S. banknotes to Russia.
Russia's financial system under strain
Inside Russia, the Central Bank acted on 11 March to order all banks not to charge commission for withdrawals of foreign-denominated cash from the accounts of individuals. It also set a rule that remittances from abroad could be withdrawn only after being converted to rubles.
On 12 March, the Central Bank announced that stock trading on the Moscow Stock Exchange would stay suspended until at least 18 March, citing the fallout from the Russian invasion. Trading was therefore still halted on 17 March.
Markets and the talks
Global markets reacted to diplomacy as well as to sanctions. On 11 March, stock prices rose in the United States and elsewhere after Russian president Vladimir Putin said there had been progress in talks with Ukraine. The Dow increased by 300 points following his remarks.
