Two of the world’s most significant shipping lines, MSC and Maersk, suspended container shipping to and from Russia on Tuesday, deepening the country’s isolation.
Russia is faced with several restrictions from various companies following its invasion of Ukraine. These have blocked it from the global financial system, closing its economy, cutting ties, and dumping tens of billions of dollars worth of investments.
The step taken by the MSC and Maersk would cut off the world’s 11th largest economy from a large chunk of the globe’s shipping capacity.
Moscow announced on Tuesday that it would temporarily curb foreign investors from selling Russian assets. However, energy firms BP and Shell have already decided to abandon their Russian businesses. Also, leading banks, airlines, automakers, and more have cut shipments and ended partnerships.
A senior investment and markets analyst at Susannah Streeter stated that the corporate world is building a fortress to isolate Russia from the international community.
From a lucrative bet to a financial pariah
Just in a matter of weeks, Russia’s central bank is hamstrung by sanctions, major banks have been blocked out of the international payments system, and capital controls are obstructing off money flows.
Visa Inc and Mastercard Inc have barred several Russian financial institutions from their network. Furthermore, major auto and truck makers have cut exports to Russia, including AB Volvo, Volvo Cars, Harley-Davidson, General Motors, and Jaguar.
Tech companies are shutting services in Russia, and Meta platforms Inc. restricts access to Russian state media outlets RT and Sputnik on its platforms across the European Union.
These measures are being looked at as a mission to voice dissent and protest.
California Treasurer Fiona Ma stated firmly on Monday that they are against Russia’s aggression and declared support for divesting Russian assets from the state’s pension funds.
20% of global air cargo faces blockages in the east-west flight corridors after the EU and Moscow issued airspace bans.
Russia, however, defends its actions by calling it a “special operation” in Ukraine. It is not their intention to occupy territory but to destroy Ukraine’s military capabilities and capture dangerous nationalists.