By Azuka Christopher
MON 28 FEB, 2022-theGBJournal- The European Union has closed its airspace for Russian owned planes, Russian-registered or Russian-controlled aircraft. The European Commission President Ursula von der Leyen announced the new EU step Sunday.
Russian planes have also been banned from UK airspace as pressure builds on Russian economy. Germany said its ban on Russian planes would last three months. U.S airlines are suspending flight booking agreement with Russia’s Aeroflot.
Reports say most Russian airports departure boards showed dozens of flight cancellations Sunday, including flights to major European cities.
The Russian economy is coming under increasing pressure from even the private sector, underscored by the announcement Sunday by oil giant BP that it is offloading nearly 20% stake in Russian state-owned oil company Rosneft.
Norwegian energy company Equinor ASA signalled it will also start the process of divesting from its joint ventures in Russia.
Amid the squeeze on Russian economy, the Russian local currency, the rouble has fallen 25% against the U.S dollar, a new record low for the Russian currency. The crash follows the crippling ban imposed on country’s central bank and some local banks.
The local banks were banned from using SWIFT international system and the assets of the central bank frozen, limiting the country’s ability to access its nearly $630 billion overseas reserves. There are now talks of a likely run on Russian banks after fears that hoards of people will scramble to the banks to withdraw money.
News agency, RIA News today cited Singapore’s Minister of Foreign Affairs Vivian Balakrishnan as saying that the country have banned financial transactions of some Russian banks. The news comes as Russia central bank ordered block on foreign clients’ bid to sell Russian securities.
Last week, Moody’s was mulling review of Russian bonds to possibly downgrade them to ‘’junk’’. If downgraded, it will put Russia on the list of riskier countries. Credit rating agency S&P has since lowered Russia to junk status.
Meanwhile, anti-war protests are taking place around the world against the Russian assault on Ukraine. Reports say nearly 6,000 people have arrested by Russian authorities in Russia.
Civilian casualty is mounting at the same time. Release on Sunday by Ukraine Human Rights Commissioner put the number at 210, including several Children.
The UNHCR said the number of refugees from Ukraine who have crossed to Poland, Hungry, Romania, Moldova and other countries is escalating and is now 368,000.
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