Russia's invasion of Ukraine triggers sweeping Western sanctions

On 24 February 2022, Russia launched a full-scale invasion of Ukraine, escalating a conflict that had run since 2014. Within days, the United States, the European Union, the United Kingdom and other allies announced sweeping sanctions aimed at pressuring Moscow.

The measures targeted Russian banks, state-linked companies and wealthy individuals. Assets were frozen, and several Russian lenders were cut off from SWIFT, the global interbank messaging system used for cross-border payments. The central bank's foreign reserves held abroad were also immobilised, and export controls restricted the sale of technology to Russia.

The sanctions mattered far beyond Russia's borders. Foreign banks and payment providers became cautious about handling transactions linked to Russian institutions, fearing penalties for breaching the rules. Visa and Mastercard suspended operations in Russia, and many Russians found it harder to pay for services abroad, including travel. This wider caution, known as over-compliance, later shaped decisions by banks in third countries about Russian customers and payments.