Business
Column: How Western sanctions may demolish Putin’s ‘Fortress Russia’

For years, Vladimir Putin labored assiduously to strengthen what was referred to as “Fortress Russia,” decreasing its authorities debt and build up its reserves of gold and international forex as a bulwark towards political and financial challenges.
Over the previous couple of days, Fortress Russia has begun to crumble. What regarded impregnable up-to-the-minute that Russia launched its invasion of Ukraine on Feb. 24 now seems to resemble a Potemkin Village, a reference to the pretend settlements purportedly erected to deceive Catherine the Nice concerning the vibrancy of her area within the 1780s.
In probably the most important of worldwide sanctions imposed on the aggressor, the Russian central financial institution has been blocked from accessing greater than $400 billion in international reserves held overseas as financial institution deposits and securities holdings — a large portion of the $630 billion in international reserves amassed underneath Putin’s management.
Russia has cash, it simply can’t entry or spend it.
Robert Individual, U.S. Navy Academy
Russia holds roughly an extra $132 billion in gold domestically, however monetizing that hoard will probably be extraordinarily tough amid monetary restrictions positioned on the central financial institution and the nation’s largest industrial banks.
In sensible phrases, the restrictions imply that Russia has misplaced most of its potential to defend the ruble from its ongoing collapse, purchase items overseas or domestically, or pay its money owed.
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“Russia gained’t be capable to convert these funds into rubles to counteract the huge sell-off we’re seeing immediately,” says Robert Individual, professor of worldwide relations on the U.S. Navy Academy at West Level.
“And since they’re frozen, they will’t repatriate these funds and spend them domestically to assist the financial system or fund the struggle,” says Individual, who emphasizes that he’s talking personally, not on behalf of the U.S. authorities. “Russia has cash; it simply can’t entry or spend it.”
The true-world penalties have grow to be evident in latest days. Lengthy strains of depositors materialized on the doorways of Russian banks, as residents rushed to withdraw their funds earlier than the banks run out of forex.
The worth of the ruble has deteriorated by the hour, falling as little as 110 to the U.S. greenback from about 82 simply previous to the invasion — making it tougher for Russians to purchase international items and elevating the specter of hyperinflation. Normal & Poor’s slashed the score of Russian authorities bonds to “junk” standing, with different credit-rating businesses poised to comply with swimsuit.
The Russian central financial institution greater than doubled benchmark rates of interest to twenty% in an effort to lure deposits again into its monetary system. However with restrictions being positioned by the U.S., the European Union and different sovereign entities, even historically impartial Switzerland, on buying and selling with Russia, it’s unclear the place these deposits might come from.
Sanctions on the Russian authorities and on the nation’s monetary plutocrats, or oligarchs, have been hinted at within the run-up to the invasion of Ukraine, after which have been applied in steps after tanks crossed the Ukraine border and shelling started.
Putin’s private property held overseas have been frozen, as have these of prime ministers, tons of of members of the Duma, or Russian legislative physique, and main monetary figures. Some, although not Putin, have additionally been banned from touring to European nations. The U.S. has lower off Sberbank, Russia’s largest financial institution, from the U.S. monetary system and frozen the property of VTB, the second-largest financial institution. Different banks face lesser restrictions.
The U.S. has barred a few of Russia’s largest personal and state-owned firms from elevating funds within the U.S. market, together with Gazprom, the world’s largest gasoline firm; Gazprom Neft, amongst its largest oil producers; and its largest transport and railroad firms. State-owned firms are banned from itemizing shares on EU inventory markets.
The U.S. has blocked the export of high-tech merchandise comparable to computer systems and laptop chips to Russia.
The U.S. and different main nations have disconnected main Russian monetary establishments from SWIFT, the acronym for the Society for Worldwide Interbank Monetary Telecommunication. The cutoff can have a chilling impact on Russian transactions, as a result of communications over SWIFT enable the speedy and environment friendly conclusion of these transactions, however technically wouldn’t block them outright.
By far probably the most important worldwide sanction is the freezing of the Russian central financial institution’s property overseas. That’s genuinely a hammer blow — and one which shocked worldwide commerce consultants with its scale and the rapidity with which it got here collectively.
“Going after the central financial institution is a large step,” Daniel Fried, a former U.S. ambassador to Poland and at present a fellow on the Atlantic Council, mentioned throughout a council roundtable dialogue Saturday. “We’re in a brand new place. That is financial chilly struggle towards Putin’s Russia, which is completely deserved.”
“That is actually a historic set of actions by the Western allies,” says Daniel Glaser, a former U.S. Treasury official specializing in terrorism financing and monetary crimes. “I’ve been concerned on this space for greater than 20 years, and it’s taken us per week to do what took us 5 years to ramp up towards Iran” beginning within the Nineteen Nineties.
What makes the extreme sanctions so extraordinary, Glaser instructed me, is that they’re directed not at a modest-size nation like Iran, however a developed nation that could be a member of the G20, or Group of 20 developed nations. “What’s important is that this can be a coordinated and fairly overt assault on Russia’s reserves.”
Via the postwar years, main nationwide economies grew to become extra built-in and interrelated. “Globalization” was not all the time seen as a world boon. For Putin, nevertheless, it was an indispensable brick in Fortress Russia — he purposely strove to make international economies, particularly in Western Europe, extra depending on Russia, mainly via its exports of oil and pure gasoline.
Now and for the primary time, nevertheless, world interdependence has been weaponized for geopolitical functions. “We’re seeing the benefit of globalization,” says Richard M. Nephew, a sanctions skilled at Columbia College. “We’re saying, ‘Sure, you’re in our system, however we’re additionally in yours.’ ”
Putin’s efforts to inoculate Russia towards sanctions included utilizing revenues from oil and gasoline gross sales — the nation’s main exports — to quickly pay down the nation’s worldwide debt to the purpose that it amounted to lower than 18% of its gross home product, making it one of many least indebted nations on the earth, by Individual’s reckoning.
In the meantime, Putin assiduously constructed up Russia’s international alternate holdings, growing them by greater than 36% because the finish of 2018.
Russia has the capability to avoid or blunt some sanctions. Oil and gasoline gross sales are nonetheless permitted underneath the sanctions regime, at the very least via the top of June — a loophole that will replicate the necessity for European patrons to acquire provides of oil and gasoline via the winter and spring.
Russia might additionally attempt to evade some sanctions with the cooperation of China, one nation that has not overtly joined the sanctions drive. Russia holds about $84 billion in Chinese language authorities bonds, in response to Individual, however they will be transformed solely into Chinese language forex and, subsequently, spent solely on Chinese language items.
However Putin might not relish tying his nation’s fortunes nearer to China.
“If Russia needs to show itself right into a vassal to China,” Glaser says, “I’m certain the Chinese language can be glad to dictate phrases to them. However I don’t assume China will probably be notably fascinated with saving Russia from the West.”
The important thing imponderable within the sanctioning of Russia could also be how lengthy the coordinated monetary assault can maintain. One challenge is what Russia can do that will immediate the West to rescind the restrictions. A withdrawal of troops from Ukraine actually can be essential, however whether or not any however probably the most stringent sanctions can be eliminated so long as Putin stays the Russian president is unsure.
One other unknown is what influence the Russian sanctions can have on the remainder of the world. “It’s nearly inevitable that such a disruption within the worldwide financial system goes to have unattractive penalties worldwide,” Glaser says.
“These actions will not be cost-free to the West,” he instructed me. “However if you examine the devastating influence you’re already seeing within the Russian financial system to the delicate and longer-term influence on the worldwide financial system, it’s nearly like evaluating apples and oranges.”

Business
Here’s how the 2025 legislative session closed: The lowdown on the environment

Gov. Gavin Newsom wrapped up the 2025 legislative session with the usual flurry of activity, signing several important environmental, energy and climate bills and vetoing others ahead of Monday’s deadline.
Among the newest laws in California are efforts to accelerate clean energy projects and advance the state’s position as a climate leader — but also decisions to ramp up oil drilling and reject the phase-out of forever chemicals.
Here’s a look at what happened this year:
In September, Newsom signed a blockbuster suite of bills including the reauthorization of California’s signature cap-and-trade program, which sets limits on greenhouse gas emissions and lets large polluters buy and sell emissions allowances at quarterly auctions. The Legislature extended the program by 15 years to 2045, rebranded it as “cap-and-invest” and specified how its revenues will be allocated for wildfire prevention efforts, high-speed rail and other projects.
The greenhouse gas trading program is seen as essential for the state to meet its climate targets, including reaching carbon neutrality by 2045.
“California really needed to act this year to decisively try to put in policies to meet our climate goals [and support] the economy and different sectors,” said Susan Nedell, senior western advocate with the nonpartisan policy group E2. She called state legislative efforts especially important as the Trump administration aims to erode California’s authority on tailpipe emission standards, electric vehicle initiatives and renewable energy projects, among others.
“This is the time for California to lead, and I really feel like they came through on it as a state,” Nedell said.
WHAT ELSE BECAME LAW
- One of the more controversial bills of the year was Senate Bill 237, which makes it easier to drill up to 2,000 new oil wells in Kern County. It’s a tradeoff that also makes it more difficult to drill new oil or gas wells offshore. Legislators said it will help address the volatility of gasoline prices following announcements from oil companies Phillips 66 and Valero that they are shutting down two big refineries in the state. Environmental groups were quick to condemn the bill.
- Also controversial was Assembly Bill 825, which will expand California’s participation in a regional power market — enabling the state to buy and sell more clean power with other Western states. Opponents feared that it will cede some control of California’s power grid to out-of-state authorities, including the federal government. Supporters said it will improve grid reliability and save money for ratepayers.
- January’s firestorm in L.A. led to a renewed focus on the state’s approach to fires, including Senate Bill 254, which contains various policies to address California’s aging electric infrastructure and wildfire prevention goals. It will secure about $18 billion to replenish the state’s wildfire fund — a state insurance policy for utilities — which officials say will help protect ratepayers from excessive utility liability costs. It also will establish a program to speed up the construction of power lines needed for clean energy projects.
- Assembly Bill 39 requires cities and counties with at least 75,000 residents to plan for more electrification infrastructure by 2030, including electric vehicle charging and building upgrades. The measures must address the needs of low-income households and disadvantaged communities.
- Senate Bill 80 will create a $5-million fund to accelerate research and development for fusion energy. Fusion creates energy by slamming two atoms together. The state hopes to launch the world’s first fusion energy pilot project by the 2040s. “Fusion energy has the immense potential to provide consistent, clean baseload power on demand that will help us meet our clean energy goals,” said Sen. Anna Caballero (D-Merced), the bill’s author, in a statement.
- Assembly Bill 888 creates a grant program to help low-income homeowners clear defensible space around their houses and install fire-safe roofs. It is “exactly the kind of proactive, people-first policy California needs,” said Eric Horne, California director for the nonprofit Megafire Action, which is geared to ending large wildfires.
- Senate Bill 653 means that state agencies have to pay more attention to using native species in their fire prevention work and use science-based standards to avoid introducing invasive, fire-prone species.
- Senate Bill 429 establishes the Wildfire Safety and Risk Mitigation Program at the California Department of Insurance, which will fund research into developing and deploying a public wildfire catastrophe model — a computer simulation that estimates property damage from large wildfires and helps communities better assess and prepare for risk.
- Assembly Bill 462 streamlines approvals for accessory dwelling units on properties affected by the 2025 wildfires in the California Coastal Zone, requiring decisions on coastal permits within 60 days and eliminating some appeals.
- Assembly Bill 818 accelerates local permitting for rebuilding homes and allows residents to place temporary homes, such as manufactured homes or ADUs, on private lots during reconstruction.
- Assembly Bill 245 gives residents additional time to rebuild their homes or businesses in the wake of the 2025 wildfires without experiencing a property tax increase.
- Senate Bill 614 will establish new regulations for the safe transport of carbon dioxide captured from large polluters or removed from the atmosphere. The legislation will authorize the development of dedicated pipelines to move CO2 to underground geological formations for permanent storage, and was described by Newsom as a vital next step for the state’s burgeoning carbon capture, removal and sequestration market.
- Assembly Bill 14 expands the “Protecting Blue Whales and Blue Skies Program” statewide. The program encourages large vessels to voluntarily reduce their speed in designated areas in order to reduce air pollution and reduce the risk of fatal vessel strikes and harmful underwater acoustic impacts on whales.
WHAT WAS VETOED
- The governor vetoed Senate Bill 34, which would have required the South Coast Air Quality Management District to consider certain factors before implementing regulations at the region’s ports. Opponents, including health and environmental groups, said it would have ultimately weakened its authority and ability to meet clean air standards. In its place, the air district and the ports are pursuing a voluntary cooperative agreement that will include obligations for zero-emissions infrastructure and other clean-air efforts. “With the current federal administration directly undermining our state and local air and climate pollution reduction strategies, it is imperative that we maintain the tools we have,” Newsom wrote in his veto.
- Assembly Bill 740 would have directed the state’s energy agencies to create an implementation plan for “virtual power plants” — networks of small energy resources such as smart thermostats, home batteries and rooftop solar panels that can help reduce strain on the grid. Newsom vetoed it earlier this month, stating that it would result in additional costs for the California Energy Commission’s already depleted operating fund. But Edson Perez, California lead at the nonprofit Advanced Energy United, called its veto a “costly mistake” and said the bill would have saved ratepayers more than $13 billion.
- Newsom this week also vetoed Senate Bill 682, which would have phased out the use of perfluoroalkyl and polyfluoroalkyl substances, known as PFAS, or “forever chemicals,” in consumer products such as nonstick cookwear and products for infants and children. The governor cited concerns about affordability in his veto.
Earlier this year, the governor also signed the most significant reforms to the California Environmental Quality Act, or CEQA, since it originally became law in 1970. Signed in June, Assembly Bill 130 and Senate Bill 131 exempt a broad array of housing development and infrastructure projects from CEQA in an effort to ease new construction in the state. Supporters said it will help address the state’s housing crisis, while many environmental groups were outraged by the move.
“While California was able to advance on grid regionalization, strengthen energy affordability, uphold local air quality protection, and protect endangered species, we’re frustrated by the Governor’s vetoes of measures that would have banned forever chemicals, prioritized cost effective energy consumption, expanded virtual power plants to lower electricity bills, and banned microplastics,” said Melissa Romero, policy advocacy director with the nonprofit California Environmental Voters.
Business
Tens of thousands of Kaiser Permanente healthcare workers launch five-day strike

Tens of thousands of Kaiser Permanente healthcare workers in California and Hawaii walked off the job early Tuesday as they urged the nation’s largest not-for-profit medical provider to increase salaries and address staffing shortages.
Up to 31,000 registered nurses, nurse anesthetists, pharmacists, midwives, physician assistants, rehab therapists, speech language pathologists and other specialists are involved in the planned five-day strike.
“We’ve been really clear, our workers are trying to keep up and catch up with the cost of inflation,” said Charmaine Morales, president of United Nurses Assns. of California/Union of Health Care Professionals, known as UNAC/UHCP.
Morales said the union’s request to raise wages a total of 25% over four years was necessary to compensate for the far smaller increases workers received in their 2021 contract negotiations, when they received a 2% raise in the first year. She also said the company neglected to meet with various groups of workers at planned bargaining sessions last week to discuss solutions to short-staffing.
“We need to be able to hire more permanent staff. We’re looking for long-term solutions to staffing burnout,” Morales said.
The union has proposed an internal registry of on-call nurses who are union members, so that the company doesn’t have to rely on contract traveling nurses. Morales said the proposal “didn’t go anywhere.”
As striking workers picketed at facilities across Southern California, Kaiser Permanente called the strike “unnecessary and disruptive” and said the demands would “dramatically increase” its current $6.3-billion annual payroll. The company also insisted that staffing was not central to the union’s demands.
Kaiser spokesperson Candice Lee said in an email that while the union’s “public messaging emphasizes staffing and other concerns, the core issue in this negotiation is wages. That’s the reason for the strike.” Lee said that Kaiser’s staffing ratios meet or exceed all California-mandated nurse-to-patient ratios, and that the company “has been proactive in hiring and retaining staff to ensure we deliver the care our patients expect and deserve.”
The company has called the workers’ request for a 25% salary increase “out of step with today’s economic realities and rising health care costs.” Kaiser’s offer of a 21.5% pay raise would increase payroll by nearly $2 billion by 2029, the company said.
“To support this level of increase, we’re reducing internal costs and optimizing operations. Anything beyond 21.5% will require us to further increase rates for our members and customers, at a time when health care costs are increasingly unaffordable and many of them are having to make the difficult choice to go without coverage,” read a statement on the company’s website.
The company said it has plans to fill in care gaps during the strike, and has hired 7,600 temporary nurses, clinicians and other staff as substitutes. Many of those personnel have worked at Kaiser Permanente before and are familiar with its facilities, Kaiser said. The company also noted that 1,000 of its employees volunteered to be reassigned to work in strike locations.
The union’s collective bargaining agreements with Kaiser Permanente expired Sept. 30. Negotiations between the union and the company over wages and benefits have been ongoing for about three months, although some of the union workers have been in talks since March.
The first day of the strike — which is planned to continue until 7 a.m. Sunday — coincided with the onset of a potent storm that swept across Los Angeles early Tuesday.
Surgical nurse Tonja Sweeney marched with hundreds of others from a nearby park to Kaiser South Bay Medical Center through a downpour early that morning. The crowd of drenched healthcare workers carried signs, and their blue ponchos whipped in the wind.
Sweeney, 54, who has worked at Kaiser Permanente for 20 years, had been on the picket line for hours. “I’m super soaking wet, but it’s OK. We’re advocating for the right things,” Sweeney said.
The Harbor City facility was among 20 sites that were picketed across the state, with most of them concentrated in Southern California. Actions are planned in Hawaii and Oregon later in the week.
Sweeney said she often struggles to manage five patients, particularly if other staff members, such as nutritionists and aides, are tied up. If two patients, for example, are delirious upon waking from surgery, they both need someone to sit by their bedsides, even as a third or fourth patient may need assistance walking to the toilet.
“It’s not easy to walk away from our patients, but if we don’t advocate for them, who will?” Sweeney said. “We’re the people taking care of them. It’s hard but we have to do it.”
Romy Timm, a physical therapist, joined the picket line with other union members on strike.
Timm said problems of short-staffing are prevalent for physical therapists as well, and at least ten of her co-workers in recent years have reduced their work hours to part-time from full-time because it became too exhausting for them to consult with 16 to 20 new patients a week.
“We often work on paperwork through our lunches,” Timm said.
Timm, who for six years worked as an ergonomist for the company, would evaluate workspaces for nurses and pharmacists who had filed requests because they were starting to experience repetitive stress injuries from long hours caring for patients or filling prescriptions, she said.
Demands for higher wages come amid rising healthcare costs. Average monthly premiums for families with employer-provided health coverage in California’s private sector nearly doubled in 15 years. Costs rose from just over $1,000 in 2008 to almost $2,000 in 2023, according to an analysis of federal data by KFF Health News, which is not affiliated with Kaiser. That increase is far greater than the rate of inflation.
Some major medical facilities face other financial headwinds, with uncertainty of federal funding due to impending Medicaid cuts. Facilities including Sharp HealthCare, UC San Diego Health and UCSF Health have in recent months announced plans to cut public health services and conduct hundreds of layoffs.
Business
Video: New Tariffs Worry Furniture Sellers

new video loaded: New Tariffs Worry Furniture Sellers
transcript
transcript
New Tariffs Worry Furniture Sellers
New tariffs on imported furniture, kitchen cabinets and lumber came into effect on Tuesday. President Trump has threatened more.
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Everybody is going to be slowly raising their price once every three months or once every six months, you know. But everybody is going to be raising their price — that’s for sure. I wasn’t against the president trying it, because I think we need better trade deals. The longer it goes on, the more it hurts, so I’d like to see something resolved as soon as possible to try to get a fair deal for everybody.
By Monika Cvorak
October 14, 2025
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