As a result of Western sanctions over Russia’s invasion of Ukraine, the world’s three most extensive shipping lines have ceased non-essential cargo to the country, adding to a growing list of businesses that have shunned Moscow.
Earlier this week, the Danish shipping firm Maersk, the Swiss shipping company MSC, and the French shipping company CMA CGM all stated that they would no longer accept orders for commodities from Russia and cease all deliveries to the nation.
“Bookings to and from Russia will be temporarily halted, except groceries, medical supplies, and humanitarian assistance,” Maersk said in a statement, citing the effect of sanctions.
A similar announcement was made by MSC, which said that it will “continue to accept and filter reservations for the transport of vital cargo.”
In a statement, CMA CGM said that its “top objectives continue to be the protection of our staff and the preservation of as much of your supply chain as possible.”
‘In the interest of public safety,’ the company said in a statement on its website, “all reservations to and from Russia have been suspended as of today and will remain so until further notice.”
Because container shipping firms transport the vast majority of the world’s produced commodities, they are an integral aspect of its trading system.
As the world’s eleventh-largest economy and the source of one-sixth of all commodities, Russia is essentially blocked off from a substantial portion of the world’s shipping capacity due to the actions of Maersk, MSC, and CMA CGM, among others.
Russian businesses have been forced to suspend sales, cancel links, and sell tens of billions of dollars worth of assets because the West has put severe restrictions on its economy to isolate it from the international financial system.
On Tuesday, Germany’s finance minister, Christian Lindner, said that the sanctions are intended to “isolate Russia politically, economically, and financially.”
After holding talks with peers from the G7 group of affluent countries, he said that the measures had already had a “huge effect on financial markets and currencies.”
Apple, Google, Ford, and Harley-Davidson are among the corporations that ceased sales in Russia on Tuesday.
As a result of the Russian invasion of Ukraine, Apple has declared a stop in sales in Russia and additional steps, including a restriction on Apple Pay and the removal of the ability to download RT News outside of Russia, among other things.
Several Russian financial institutions have been barred from participating in the payment card networks of Visa Inc. and Mastercard Inc.
To stop the decline in the currency and the broader financial markets, the Russian government has proposed a raft of steps that include prohibiting money transfers to other countries and shutting the Moscow Stock Exchange.
Since Russian President Vladimir Putin announced the invasion last week, the currency has lost around 35% of its value.