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Explainer-How Western sanctions target Russia

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The United States, Britain, Europe and Canada announced new sanctions on Russia on Saturday – including blocking certain lenders’ access to the SWIFT international payment system – following Russia’s invasion of Ukraine on Thursday.

Below are details on the measures proposed so far:

SWITCHING OFF SWIFT

Washington and its partners started to deploy what was widely seen as one of the harshest sanction measures: barring banks from SWIFT – a step that will stop lenders from conducting most of their financial transactions worldwide and, according to the statement, effectively curb Russian exports and imports.

The step, which will include restrictions on the central bank’s international reserves, will be implemented in the coming days, the nations said in a joint statement that also vowed further action.

It was not immediately clear which Russian banks would be removed from SWIFT, but Ursula von der Leyen, president of the European Commission, said the move would ensure those selected were “disconnected from the international financial system” in a way that would “harm their ability to operate globally.”

SWIFT is used by more than 11,000 financial institutions in over 200 countries.

BANKS & FINANCIAL FIRMS

The United States and Britain announced restrictions that, combined with previous sanctions, would in effect kick the vast majority of Russian banking assets out of both countries. New targets included Sberbank and VTB Bank, Russia’s two largest lenders.

U.S. banks must sever correspondent banking ties – allowing banks to make payments between one another and move money around the globe – with Russia’s largest lender, Sberbank, within 30 days.

Officials in Washington also wielded their most powerful sanctioning tool, adding VTB, Otkritie, Novikombank and Sovcombank to the Specially Designated Nationals (SDN) list – effectively kicking them out of the U.S. financial system, banning trade with Americans and freezing their U.S. assets.

EU leaders have agreed sanctions targeting 70% of the Russian banking market and important state-owned companies, including in defence.

Russia’s large banks are deeply integrated into the global financial system and sanctions will be felt far beyond its borders. Data from the Bank for International Settlements showed European lenders hold the lion’s share of the around $120 billion in foreign banks’ exposure to Russia.

According to data from Russia’s central bank, total Russian banking foreign assets and liabilities stood at $200.6 billion and $134.5 billion, respectively, with the U.S.-dollar share amounting to around 53% of both, down from 76%-81% two decades ago.

SOVEREIGN DEBT & CAPITAL MARKETS

Britain announced it would ban Russian sovereign debt sales in London. Russia has issued 4.1 billion pounds of sovereign debt in London since the beginning of 2020.

The coming package of EU measures will “target the ability of the Russian state and government to access the EU’s capital and financial markets and services, to limit the financing of escalatory and aggressive policies,” the bloc said. It will ban EU investors from trading in Russian state bonds.

Washington announced new restrictions on dealings in Russia sovereign debt on Tuesday. Americans – already barred from investing in Russian sovereign debt directly – will be banned from purchasing it in the secondary market after March 1.

Even before the latest events, access to Russian bonds had become increasingly restricted.

U.S. sanctions imposed in 2015 made future Russian dollar debt ineligible for many investors and key indexes. In April 2021, President Joe Biden barred U.S. investors from buying new Russian rouble bonds over accusations of Russian election meddling.

The curbs have cut Russia’s external debt by 33% since early 2014 – from $733 billion to $489 billion in the third quarter of 2021.

INDIVIDUALS

The U.S., the EU and Britain have already imposed asset freezes, travel bans and other curbs on Russian individuals.

Britain announced sanctions on more than 100 Russian individuals and entities, including an asset freeze and travel ban on Yelena Georgieva, chair of the board of Novikombank; Pyotr Fradkov, Promsvyazbank chairman; Denis Bortnikov, VTB deputy president; Kirill Shamalov, President Vladimir Putin’s former son-in-law; and United Aircraft’s Yury Slyusar.

Britain will also introduce legislation to limit deposits that Russian nationals can hold in UK bank accounts. The limit will be 50,000 pounds ($66,860) at British banks.

Washington sanctioned Fradkov and Bortnikov on Tuesday, as well as Vladimir Kiriyenko, the son of a former prime minister.

On Thursday, Washington targeted others close to Putin, including Sergei Ivanov, CEO of Russian state-owned diamond mining company Alrosa; Andrey Patrushev, who has served in leadership roles at Russian state-owned gas company Gazprom; and Ivan Sechin, reportedly a deputy head of a department at energy company Rosneft.

Biden said on Thursday he would consider personal sanctions on Putin, a move Moscow has said would not harm the Russian president personally but would prove “politically destructive”.

The EU has already imposed sanctions on five people who were involved in a Russian parliamentary election in annexed Crimea last September, and said it would blacklist all lawmakers who voted to recognise two regions controlled by pro-Russian separatists in eastern Ukraine, freeze any assets they have in the EU and ban them from travelling to the bloc.

ENERGY CORPORATES & NORD STREAM 2

The United States and the EU already have sanctions in place on Russia’s energy and defence sectors, with state-owned gas company Gazprom, its oil arm Gazpromneft and oil producers Lukoil, Rosneft and Surgutneftegaz facing various types of curbs on exports/imports and debt-raising.

Sanctions could be deepened, with one possible option being to prevent companies settling in U.S. dollars.

Nord Stream 2, a recently completed pipeline from Russia to Germany, was awaiting regulatory approval by EU and German authorities before Berlin put its certification on ice.

The U.S. on Wednesday imposed sanctions on the company in charge of building Russia’s Nord Stream 2 gas pipeline.

CURBING TECHNOLOGY

The EU has vowed to introduce measures to crimp Russia’s technological position in key areas – from high-tech components to cutting-edge software.

The U.S. Commerce Department said on Thursday it was implementing export controls that will severely restrict Russia’s access to semiconductors, computers, telecommunications, information security equipment, lasers, and sensors that it needs to sustain its military capabilities.

Similar measures were deployed during the Cold War, when sanctions kept the Soviet Union technologically backward and crimped economic growth.

 

(Reporting by Karin Strohecker and Catherine Belton in London, Michelle Price in New York, Katya Golubkova and Andrey Ostroukh in Moscow; Editing by Timothy Heritage and Leslie Adler)

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Bad traffic, changed plans: Toronto braces for uncertainty of its Taylor Swift Era

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TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?

It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.

Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.

And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.

Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.

Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.

Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.

“Something as simple as getting together and having dinner is now thrown out the window,” he said.

Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.

“Her coming into town has kind of changed up my social life,” he added.

“We’re pretty much just not doing anything.”

Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.

“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.

“We’re a hybrid company, so we can be flexible. It just makes sense.”

Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.

In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.

“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.

Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.

“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.

Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.

Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.

“There may be some who will say we’re over-preparing, and that’s fair,” Green said.

“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”

Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.

A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.

“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.

Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.

“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.

“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”

This report by The Canadian Press was first published Nov. 13, 2024.



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‘It’s literally incredible’: Swifties line up for merch ahead of Toronto concerts

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TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.

Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.

Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.

Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.

Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.

“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”

The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.

Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.

“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.

Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.

The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.

Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.

Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.

But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.

Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.

“It’s literally incredible.”

This report by The Canadian Press was first published Nov. 13, 2024.

The Canadian Press. All rights reserved.



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Via Rail seeks judicial review on CN’s speed restrictions

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OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.

The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.

It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.

CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.

The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.

Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.

This report by The Canadian Press was first published Nov. 13, 2024.

Companies in this story: (TSX:CN)

The Canadian Press. All rights reserved.



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