react it to the lead to sanctions. among those major russian banks would be kicked out of the global financial transaction network swift at a cost not only to russia, but also to its trading partners of the weekend. german chancellor, will, i shall, it's made it clear that things could get even worse. bobby, on finished for let's not kid ourselves is put in will not change his course overnight. but very soon the russian leadership will feel the high price. it is paying worship already in the last week. the russian stock market sank by more than 30 percent. that shows our sanctions are working and we reserve the right to impose further sanctions on the was on the, on the so far, sanctions against russia include the exclusion from swift, making it impossible for sanctioned russian banks to pay for and receive goods from abroad. there are also restrictions on major banks with immediate consequences. the europeans subsidiary, off russia state on spare bank is facing bankruptcy. last week's initial sanctions

also included asset freezes and travel bands for individuals. as well as the blocking of rushes access to semiconductors, computers and other high tech products experts consider the sanctions against russia harsh and expect them to possibly cripple the russian economy for years to come on that, that sir, i'll talk to cost breski. he's the chief economist of iron g bank in frankfort, crossed the rubel is plummeting. what does this mean for russia right now? well, this obviously means for the people on russia, then they will get enormous high inflation. we saw this in turkey, for example, earlier this year, last year, the plunging currency leads to high imported inflation. so this means food prices will be higher, everything that is important will be high. it also means that there is a loss of capital we see on the financial markets. this explains why the russian

central bank not tried to stop the fall of the, of the rule by doubling. it's a policy right. you just mentioned that the russian central bank raise the interest rates to 20 percent from 9.5 percent today. that was russian export to sell their foreign currency revenues as well. will these and other capital controls help stabilize the rule you think? well i, i don't think so because the situation is so uncertain on the sanctions will continue to bind. and the problem for the russian central bank was that it actually, it holds. i'm currency reserves off for some i think it's $600000000000.00 approximately. but half of this is in western european countries. it is to them very often located with western european central banks. and those assets were also frozen. so this central bank could not intervene in the foreign exchange market with reserves. it only had to use the policy rate and this will not be well,

the european central bank on monday has won't that spam europe, that's a subsidiary of russia back is likely to fail. what does that mean for russia and for the european financial landscape? i think we're going to see a bit of similarity, what we saw during the financial crisis, a lady that there will be into bank market where one bank can get money from the other bank will. ready be clearly disruptive, and in this case the geographically there, there will be more tension in the so called money market bank market, which is neither good news for russia nor european banks. what sanction seem to begin to buy right now? is it wise now to go ahead with a plan and exclude a number of russian banks from the swift global into bank payment system b, a which way will that also hit european companies doing business with russia?

why it is also still clear what the details are. a lot of these plans are from what i understood is that there was a yesterday night was that trans actions to pay for oil and gas will be excluded from, from any, any, actually in this system. so, but if it was to be included, there's obviously also mean that in the end of the year, it will not get oil or gas from rush anymore because they will, but they will not be able to pay for it. but all these sanctions, like russian for an asset, a currency acids, having been frozen, an export ban for high tech components. the european canadian, possibly us air spaces be off limits for russian carriers. how soon do you think this will have an effect on the russian economy? i think we'd be in the carry off from, from international financial markets will be felt immediately and we saw the

pictures already. it is hard to get money. there will be banks in russia you're getting into trouble. so this will is in imminent impact, the dropping currency with all of the rules and imminent impact on prices on inflation in the country. so russia and the russian economy will definitely the field. and then the other thing is the, the, for the long term station, the 1st way that we saw be decided early on last week. that was no more exports and high technology could no more exports in part and materials for, for actress, city, something with which has more, a longer term horizon, but will also undermine the strength of the russian economy. at no cost, i must, you know, to look into your crystal ball there. if these sanctions do not stop, stop vladimir putin from continuing this war in ukraine. what other economic

sanctions are still in the arsenal or is, has everything been deployed by now? why do we see right now is really very much comparable. would be the same sheet on iran? said andrew at you the ran crisis site years ago. so there is already weinstein. arsel put on the table. i think the, what you could imagine go who would really be a star offer energy important. why the important from russia into your this would obviously also heard the european economy. but i think that is the, that the last last to the last instrument that europe still play cousin, partially their chief economist of iron g bank. joining us from frankfurt. thank you very much. as part of their sanctions against russia, the european union and its allies have agreed to block some russian banks from the swift global payment system. the move is widely regarded as the toughest measure in

trying to put pressure on the russian economy. he is why, what is swift? the acronym stands for society for world wide into bank financial telecommunication, a global network founded to process international financial transactions. it's been around since 1973. 190 countries used the standardized system as well as banks and commodities and securities traders. last year, some 42000000 transactions were handled by swift every day. each swift member is identified by its bank identifier, code or big. the big ensures that money transfers are paid into the correct account . a big is familiar to any one with a bank card. it allows bank a in germany to carry out transactions with money. shares of precious metals with bank b in the u. s. ever big code is blocked,

the member is shut out of swift. barring rushes, access to the swift network would separate the country completely from the international monetary flow. russia companies would no longer be able to pay for or receive foreign goods. rush us trade with the rest of the world would be suspended, but it means the trade in urgently needed goods from russia would also be interrupted. the result rising energy prices, world wide, and russia is not only a major exporter of oil and gas, but of iron and steel, to still being shut out of swift would harm russia most of all in the catalog of sanctions. it's the instrument that cuts the deepest a pipeline for transporting gas from poland to lithuania. it's expected to be completed ahead of schedule. operator gas system says it will open on may 1st instead of later in the year. as initially announced auctions will pasadena

location will begin in april work has been stepped off as concerns about european energy security. arising is normally one of the biggest events of the year for technology, faster mobile world. congress starts in barcelona, up to $60000.00 trade visitors are expected at the world's largest mobile communications, treva. but as the overshadowed of course by the events in ukraine and the massive economic sanctions on russia includes something not be seen in decades. a ban on technology transfers high tech companies at the fair by discussing what that could mean for them on t w's. chelsea delaney is at the m w. c in barcelona and she sent us this update. all this was expected to be a week of celebration where the global technology industry are returned to normality after that pandemic instead, the war between russia, ukraine is really dominating this event. there was supposed to be a rush of pavilion. they're no longer will be, but there's also

a lot of long term consequences for the industry and that we're going to see really taking center stage here. first and foremost, rushes access to western technology, particularly semiconductors is going to be restricted as well. russia is a major supplier of things like palladium or neon that are crucial to technology production to this could end up actually worsening. some of the supply chain issues we've been dealing with at the same time. a lot of western companies like google or facebook or twitter, youtube are seeing access to their services restricted in russia or are restricting them themselves. so they're having to acknowledge that their products are, are being used as a weapon, as the ukranian deputy prime ministers that they're using, being used for propaganda to build influence for, for censorship. so this is really a landmark moment in which a global and technology giants have to really face their role in geopolitical events. and the outcome of that. analysts say it is what they're calling the splinter. now we're, we're see where we see access to technology, access to the internet become really fractured and no longer this global connector

that we'd known it as did obvious child today. they're reporting from barcelona. i know his quick update for you all the latest events relating to russia's invasion of ukraine. ukrainian delegation has arrived and bill roo, swear it's holding peace talks with russia aimed at ending the invasion. now in its 5th day, you can say that would be pushing for a cease fire. and the withdrawal of russian troops from sto torrie. but there was an officials published this picture of the room where the talks are taking place in france. delegation includes the defense minister and deputy foreign minister. meanwhile, ukrainians have been forced to take shelter. as the russian invasion continues, government says it's still in control of all major cities. pressure is drawing on the strategic port of mario poll. hear from her have also enjoyed heavy attacks. ukraine says more than $350.00 civilians have also been killed. the

united nations security council has called the red emergency meeting of the 193 members general assembly as to take place on monday. 11 of the council's 15 members voted in favor of the resolution. russia voted against while china india and the united arab emirates, abstained. russia was unable to use its veto to block the resolution. as the vote was procedural, the us and its allies at the u. n. say russia is becoming isolated internationally decade it is. the european union has decided to finance the purchase and delivery of weapons and equipment to ukraine. it's the 1st time that you are sending weapons to a country under attacked. european commission, president of the founder lions, says the block is also closing its air space to russian aircraft and will the back will ban the state owned media channels. russia to day and sputnik vashti also announced new sanctions targeting the regime of villa rouge leader, alexander lucas. shinkel for supporting rushes invasion. he is up from the lion.

explain the significance of these developments. as the war in ukraine rages on and ukrainians like bravely for their country. european union steps up once more its support for ukraine and the sanctions against the aggression aggressor that is put in russia. for the 1st time ever. the european union will finance the purchase and delivery of weapons and other equipment to a country that is under attack. this is a watershed moment. and for more this, let's bring in the w, correspond christine one, but in a brussels, christine or these laid to steps, then mean god, it means that for the 1st time in the european union's history, it is going to be coordinating efforts in terms of bringing together its military resources and sending them add to a 3rd country in this case, to ukraine, to assist the ukrainian armed forces. the european union has set aside some

450000000 euros, and the what is called the european piece facility framework. and the different series that it is largely going to be used. this money is essentially going to be used to supply the ukranian armed forces with lethal ammunition. the european union has been known to assist a in, in, in conflict missions around the world. but more from a piece perspective, so not necessarily supplying things like anti tank missiles, fighter jets and the like the kind of assistance that is going to be given to the ukrainian or armed forces. so the significance of this cannot be, am under estimated. it cannot be understated as we're hearing from that wasn't on the line there. it is really a watershed moment for the european union to take the step in doing this. indeed, in the weeks leading up to, to this invasion, we saw an individual member states donating military eights of the ukrainian

military. but this was at a bilateral level. and now this, if it is being coordinated at a, at a block level, an e u level, and that again, is the 1st time we've ever seen such happen. so you defense ministers are also convey convening to day walker. we expect her so now it's about the logistics of this, right. i've talked about this for 150000000000 years. that's been set aside. and it doesn't mean that the european unit is suddenly going on a shopping spree to buy all this equipment. no, because this is the kind of stuff that you make orders for and it takes months or for delivery. so what they're going to do is they're going to give the ukrainian armed forces from what is already in the e u struck by that. i mean, what do individual member countries have? so for example, some states i have loads of anti tank missiles at this, her fighter jets and others not. so they're going to be coordinating who's got what and how then to send that off. of course, to the ukranian, a military that has to happen soon in the coming days, as you can understand, the situation on the ground as it is unfolding. and this has to happen sooner

rather than later. so it is expected that the defense ministers will now be coordinating the logistics of that bear in mind. the european union is not a military alliance. so to say, so this is sort of uncharted territory. but many of them are nato member states and under the nato framework, they have participated in a number of maneuvers so they have be, know how in terms of how to move around or equipment. so you can expect that they'll use avenues like poland, romania, et cetera. in order to get as some of this military aid add to the ukrainians as soon as possible, but gearhart going forward. this also now opens up that conversation that emanuel con, has constantly, i've been putting on top of the ear gender. that is a common defense for the european union, and up until now it's been one of those things of that that the front, the french president has been pushing for and, and there's been sort of a lack luster as sort of attitude towards it. but i think having seen this invasion, a lot of e u. member states are now thinking about the real, a probability of, of,

of, of the threats to the european union. and the fact that this becomes more necessary now more than ever. so it's, of course would be hope that it remains at the theoretical probability or possibility, but the idea of a common european defense, a common european army, is certainly now more real than it's ever been before. gearhart who sees you currently present ramez zalinski is calling for immediate you membership for his country, assuming ukraine retains its independence. what are the prospects of the country becoming an e. u members stayed very quickly while the response add to that perhaps the her by the a european council president sha michelle. i'll give that see here. as he said, it, he said look, the e, you already has an association agreement with ukraine, which can be deepened at. so essentially, all michelle, a basically, you know, cutting, reducing their, their, their expectation. they're basically taking it off the table for ukraine to be

granted. and that e u membership, we know that some member states, poland for exam examples over here do support the ukrainians in that in that they have publicly chord for, for, for ukraine to be granted, accession into the european union. but i'll point out that most e, you states, right, the majority of eager states have not officially stated their support for ukraine's accession into the european union. so it's difficult to see and some kind of an express parsley for the ukrainians to be granted eager membership. at the moment it does appear that the more preferred option is to increase co operation in existing frameworks like the eastern partnership of for example, but not quite e u membership just yet for ukraine. did you respond? christy mont brother reporting from brussels. thank you. christine mars, we've heard russia's president vladimir putin, us put his countries a deterrence forces that includes its nuclear weapon systems on high alert in

a video from murder kremlin, put it said natal powers had made aggressive statements towards russia. be also pointed to economic sanctions that been cut off russian banks from international google trans. we're mostly money, a turning point in europe's history. that's how a german chancellor all of shots described russia's war against ukraine. speaking to a special session of parliament on sunday, shoals announced a raft of policy changes that would have been unthinkable just days ago. germany will triple its military budget this year and reduce its dependency on russian energy imports. german chancellor olive shelf is moving the country away from this traditional path admits defense and security policy to a tougher, more direct line shackled bytes 1st and 2nd world war history. germany has been

hesitant to involve itself in conflict, but short says, this is a new era. 6, he casala cut us this war is a catastrophe for ukraine. but this war will also turn out to be a catastrophe for russia. russia has done the unthinkable. bringing the most aggressive military assault to europe since world war 2. at the special session of the moon, the south shelter announced germany ascending 1000 anti tank weapons and 500 surface to air missiles directly to ukraine. instead of using a 3rd party. it will also invest $100000000000.00 euros in a special military fine. and after years of pushing against cars from the us to invest more in natal shelton ounce that's happening too high to national defense spending to more than 2 percent of germany's economic output per year president put

in president putin should not under estimate our determination to defend every square meter of our alliances territory together with our allies is laden, we are cutting off russian banks and state companies from financing. if we are preventing the export of future technology to russia, we are focusing on the oligarchs and their assets in the east. germany and its allies hold these tough multilateral sanctions. will force russia to retreat and bring peace. that to you, me. of the war there's, i'm a joint barge if it corresponded. melinda, cried miller, a complete turnaround in german foreign security policy there yesterday. that within the space of just a couple of days. and there's nothing short of a paradigm shift in postwar, germany, at what changes are we looking at?

absolutely, it is a complete attack, tonic shift. so concretely, the big changes are what we just heard about. 100000000000 in a fund to modernize and, and reform the armed forces that is basically double the budget for the military in this year. a pledge to commit more than 2 percent of g d p to future defense spending. something that's been on the agenda forever. that germany hasn't pledged to do, but never lived up to. so that's a momentous change. and then this agreement to very harsh economic sanctions, despite the fact that they will undoubtedly also redound on german citizens in the german economy. but beyond that or underlying that, is this major shift in perspective, away from a long consensus of that, that weapons should not be sent to war zones that germany should practice diplomacy

and dialogue. but essentially tie its own hands when it comes to military. might all of that reflecting what you might say is a lesson learned to well from the 2nd world war? the idea that and germany having instigated a war of aggression itself, should be a military midget. you might say, although an economic giant and then also the idea after the cold war, the germany now surrounded by friends can keep peace and moderation and stability simply by having good business relations with everybody. all of that is now thrown overboard and we hear the chancellor saying if we want to preserve our democracy, we must defend it. and invest in defense is erotic, that this falls to it to a social democratic chancellor. isn't it in a rather left linea coalition? if you will with passive his grades, so how do you think will, will his government remain stable or does it in this respect all or does it need

this conflict? so sort of gel to go? well, i think actually you could definitely maintain the thesis that only this government could have achieved this kind of a turn around. it was also the policy of angle americans, conservative led coalition to essentially commit far too little spending to defense . the buddhist there is only in the grievous state that is currently in because of the actions of that government. and that was made clear in yesterday's debate. so i think what we're seeing is, 1st of all, yes, the greens had their own passive, his tradition, but on this conflict in terms of ukraine, they have been pushing hard for stronger action. pushing hard for those weapons exports to, to the ukraine for support to ukraine. and i think we're also seeing the s p d come out of it's long slumber. this idea that it's main

tradition is aust politic to maintain those cultural and commercial relations with eastern european countries and thereby seek to ensure stability and perhaps start channeling another part of its past. namely deterrence. it was an s p d chancellor. helmut schmidt who station pershing's in this country, and thereby helped to bring the u. s. s r to its knees. so i think we're seeing both of these left leaning parties. moved to a new place. now as the chancellor said, we're in a new world, that's definitely a new atmosphere here with regard to economic sanctions. germany has been pretty much holding out with. so excluding russia from the swift international banking payment system. and now they've already agreed to exclude russia. how did that come about?

the concern there was, as the foreign minister said, on a bareback that it could cause collab federal damage to take this what's called the nuclear option, amongst economic sanctions. and she was concerned both about damaged for ordinary german citizens. and of course, for german companies that also damage to russian citizens saying that of course, germany makes support payments to civil society organizations in russia. what's going to happen to them? she emphasized that what convinced her essentially is that these are targeted sanctions or target exclusions from the swift payment information network. so it will not apply to all russian banks, but it will definitely apply to those that had already been sanctioned. that seems to also have convinced german politicians that at least for the short term, they will still be able to make payments for russian gas. because as you know, germany's economy in germany's industrial power house depends on russian gas

amongst other sources of energy. so apparently those payments will still go forward as long as the gas problem bank is not one of those that is included in this with exclusion. let's come back to the increase in military spent spending, which is actually, i think it's a tripling of the military budget to the defense budget of germany for just for this year. but what time for talking about one until this money will actually arrive and make a difference in the business? it's going to take quite a while and the speakers in that special session of the parliament acknowledged that saying we are looking at deficits in hardware deficit skills deficits in technology like cyber defenses and deficits on logistics. so there will need to it's going to take quite a while for that to really make a difference. but as you say, a tripling for this year alone,

financed by debt. and then in addition, this 2 percent plus g d p commitment going forward. so over time that will begin to balance out, but germany is not about to now become a military, it will not be exercising military power commensurate with it's enough economic power for quite a while. yeah, that'll take some time. one last question, yesterday's debate in the, in the bone to stock the opposition see to you on the lamarcus part of the former government, part of 16 years, mainly responsible for the sorry, state that the general news is in what, what did they say and is there sort of a cross party consensus up to a point definitely. there is a cross party consensus and we heard that from from dish mats, the opposition leader at the same time, he did raise some doubt about how, for example, this $100000000000.00 extra and defense spending will be financed. raised some skepticism on the point of taking on a debt. and then we heard a very interesting pushback from germany's finance minister, a member of the,

or the leader of the market. friendly, free democratic party. who said, you know what, we're not going to call any names. we're not going to point any fingers. but the point is fair is in this, sorry, state because of the leadership of the previous government. so essentially saying, you know, the pot calling the kettle black, please just, you know, hold your fire on this one. and that was quite interesting because in fact, debt financing is often viewed as legitimate when it's financing an investment. and the finance minister said this is an investment in freedom. one more question, the, the, the risk cross party consensus, of course of this as you just said. there are 2 small parties still in the journal on the sogba extreme right? if the and the left wing delinquent, but with a, the positions we certainly saw there was, there were lot of standing ovation staring the speeches yesterday and the one party

that demonstratively never got up was that right wing party, the a f d. and in terms of the left leaning party, the linker, we've heard some booze and cat calls when those numbers started coming out about defense spending. nonetheless, the consensus is broad. the mainstream parties are all essentially now aligned on this idea that democracy must be visually defended. the big challenge now will degree be to bring citizens along because in fact, the chancellor and the other speakers acknowledge, this is a wrenching moment for a german public that had to leave germany could be perhaps a big switzerland, largely mutual peaceable, having good commercial relations with everyone and that essentially this is a wake up call. that attitude is changing, but it's a painful journey and it will take leadership to bring the citizens a lot.