The Human Cost of Economic Warfare
When Western nations imposed EU sanctions on Russia following its invasion of Ukraine, the intended targets were the Russian government, military-industrial complex, and powerful oligarchs. However, years into the sanctions regime, evidence increasingly shows that ordinary Russians with no connection to the Kremlin have become collateral damage in this economic conflict, raising questions about the proportionality and effectiveness of such measures.
According to VICE, Russian students studying in Western universities have faced severe financial hardships after their bank accounts were suddenly frozen or closed. One 20-year-old business management student from Moscow studying at Exeter University in the UK reported, "If I say something bad about Russia, I will have problems there — if I say something good about Russia, I will have problems here." Such students find themselves trapped between conflicting loyalties and struggling to access basic financial services.
The situation extends beyond students to Russian workers abroad. According to The Times, Nerijus Kuskys, a Lithuanian estate manager working for Russian billionaire Mikhail Fridman in the UK, had his bank account frozen with no warning or explanation. When he tried to obtain clarification from his bank, he was met with silence: "We cannot give you an explanation," the manager said. "You need to call head office." Despite multiple attempts, he received no answers about why his account was targeted.
The Banking Restrictions Paradox
Financial restrictions imposed on Russians have created a complex web of consequences that extend far beyond the intended targets. According to Reuters, Amsterdam Trade Bank (ATB), a subsidiary of Russia's Alfa Bank, was declared bankrupt despite being solvent because sanctions forced its counterparties, including correspondent banks, to stop supporting it. The bank had approximately 23,000 customers, most of whom were Dutch, with about 6,000 Germans also affected.
This bankruptcy illustrates how sanctions can have cascading effects far from their intended targets. According to Chamber International, ATB was described as a "solvent and 'healthy' business" at the time of its bankruptcy. The bank had even attempted to sell itself to avoid closure, but the deal fell apart the night before its bankruptcy was declared.
The fallout from such closures affects many people with minimal connections to Russia's government. According to The Times, the staff at Athlone House in the UK, owned by Fridman, included "cleaners, housekeepers, gardeners" who were "Ukrainians, Lithuanians and Poles, and there were no Russians." These employees found themselves without money for food, bills, or rent after their bank accounts were frozen and closed.
The Employment Impact
The consequences of international sanctions extend to employment opportunities as well. British semiconductor company Compound Photonics, controlled by Russian tycoons including Roman Abramovich, collapsed after sanctions "torpedoed its business." The company employed approximately 100 staff, whose jobs were lost not because of business failure but due to banking restrictions that made normal operations impossible.
Similarly, a Russian-backed technology firm called Truphone was affected. According to The Times, Truphone "was harmed by the sanctions on Abramovich" and had to be sold in a pre-pack deal. These examples demonstrate how sanctions designed to target wealthy Russians often have more severe impacts on ordinary employees who lose their livelihoods.
The scale of these effects is substantial. Sanctions have been applied without adequate due process, with individuals designated based on ministerial decisions rather than court findings. The process is described as "opaque, secretive and the individual has no opportunity to see the evidence against him and defend himself."
Educational and Cultural Disruption
Beyond financial hardships, why sanctions Russia policies have created cultural and educational disruptions. Russian students have reported instances of discrimination based solely on their nationality. One student mentioned that a friend's car with Russian number plates was vandalized, even though the owner was actually Ukrainian. Such incidents highlight how sanctions can contribute to broader anti-Russian sentiment.
The academic consequences are equally concerning. Many Russian students have abandoned plans to return home during academic breaks due to travel complications resulting from flight restrictions. One student noted, "I had plans to go to Moscow for spring break but I've decided not to," citing the difficulties Russians face traveling outside their country.
The exchange rate volatility resulting from sanctions has also made studying abroad significantly more expensive. One student reported that "it has become three times more expensive to live in the UK right now as a Russian" due to the ruble's depreciation against the pound, forcing many to reconsider their educational plans.
Questioning Effectiveness and Proportionality
These human costs raise important questions about whether sanctions are not working as intended or are causing disproportionate collateral damage. According to The Spectator, sanctions have been applied inconsistently and sometimes with minimal evidence. The sanctions process has been criticized for lacking due process protections, with "Google searches, social media posts, obscure online messages and unverified articles on anti-Putin websites" used as evidence for designation.
Legal experts have raised concerns about this approach. According to The Armadillo, Michael Swainston KC told a UN Human Rights Committee that unilateral sanctions "violate human rights" and "amount to collective punishment without trial under a law that is usually retrospective and vague."
These procedural deficiencies matter because they undermine the legitimacy of sanctions regimes. According to a poll cited by The Armadillo, 71.5% of people believe it is "unfair" that a government minister has the power to impose sanctions against any individual without the right to challenge the evidence or appeal.
Balancing Effectiveness and Human Rights
The documented experiences of ordinary Russians caught in the sanctions crossfire highlight the need for more targeted approaches that minimize collateral damage. Future sanctions regimes could benefit from several improvements, including clearer humanitarian exemptions, stronger due process protections, and mechanisms to address unintended consequences rapidly.
Establishing independent review processes for sanctions designations could help ensure that individuals have meaningful opportunities to challenge evidence against them. Additionally, creating expedited licensing procedures for humanitarian cases could prevent situations where students or workers are left without access to basic financial services.
These reforms would not necessarily weaken sanctions' impact on their intended targets. Rather, they would strengthen the legitimacy of such measures while reducing unnecessary suffering among populations with minimal connections to the policies being sanctioned. A more precise approach to economic pressure might ultimately prove more effective at achieving policy goals while better aligning with Western commitments to human rights and due process.
