World leaders increase sanctions on Russia

The Group of Seven economic powers announced a volley of economic sanctions on Thursday in an attempt to stop President Vladimir Putin’s assault on Ukraine. At an afternoon news conference, President Joe Biden said he was sanctioning every Russian bank, freezing up to $1 trillion in U.S. assets. He said the United States will halt more than half of Russia’s tech imports and sanction more Kremlin elites. The United Kingdom banned all Russian planes from its airspace and granted visa concessions for Ukrainian refugees. China declined to levy sanctions, instead lifting a ban on wheat imports from Russia.

How does this affect the economy? Stocks sank worldwide as missiles pummeled key cities in Ukraine. When Moscow’s stock exchange resumed trading, indexes crashed as much as 45 percent on Thursday, with energy companies and banks dropping the most. The geopolitical situation is expected to cause price hikes around the world at gas pumps and grocery stores. Biden said his administration is working with other countries to keep gas prices as low as possible. He said U.S. military forces are prepared to defend NATO allies but will not engage in the conflict in Ukraine. A NATO summit of 30 world leaders will convene on Friday.

Dig deeper: Keep track of WORLD’s coverage of the Ukraine conflict here.