In times of crisis, the political situation gains more and more importance. States can use the economy as an instrument of foreign policy and impose sanctions, which then initiates boycotts from the opposite side. This is happening at present in the ongoing geopolitical crisis in Ukraine, in which Russia and Ukraine are key players. The consequences of the troubles in eastern Ukraine are going well beyond that country’s borders and are having an impact both on world politics and on the international financial markets.

Ice Age — but no new Cold War

The current crisis in Ukraine has seen the United States and the European Union impose tighter sanctions on Russia and prominent Russians. These measures are directed primarily at the Russian financial, energy and defence industries. Banks were defined as a particular target. Russia’s financial institutions have to be prepared for a disconnection from international capital markets, which will make refin