The White House announced measures to isolate Russia from the global financial, technology and trade system.
The United States said it was imposing “heavy” economic sanctions on Russia in response to President Vladimir Putin’s decision. attack on ukraineIt aimed to paralyze the Russian economy, financial institutions, and access to technology.
US President Joe Biden He said at the White House on Thursday: “Putin has chosen this war. And now he and his country will suffer the consequences.”
Russia’s stock market plunged to a four-and-a-half-year low on Thursday, and its currency, the ruble, hit a record low against the dollar.
Now, even more stringent measures are aimed at squeezing the Russian economy, stifling its growth, increasing borrowing costs, raising inflation and intensifying capital outflows.
Biden management said He reported on Thursday afternoon that the sanctions had targeted all of Russia’s top 10 financial institutions, and that Russia had implemented export control measures that would cut its high-tech imports by more than half.
The moves include cutting Russia’s largest bank from the US financial system, imposing sanctions on Russia’s second largest bank, and freezing its assets touching the US financial system.
The White House said the sanctions against Russia’s leading financial institutions included the imposition of “full blockchain and correspondent and payable account sanctions, and debt and equity restrictions on institutions holding about 80 percent of Russian banking sector assets.”
“The scale of Putin’s aggression and the threat to the international order require a decisive response and we will continue to pay a heavy price unless he changes course,” the Biden administration said in a statement.
He applauded the United States, Australia, Canada, the European Union, Japan and the United Kingdom for agreeing to take “similarly strong” action against Russia.
Here is a list of US sanctions:
- Disconnect By implementing measures for Sberbank, Russia’s largest financial bank, including its 25 subsidiaries, to the US financial system, cutting off Sberbank’s access to dollar-denominated transactions. Sberbank owns about a third of Russia’s banking sector assets.
- Sanctions on Russia VTB Bank (VTB), the second largest financial institution, and its subsidiaries freeze assets that touch the US financial system and prohibit US individuals from doing business with them. With heavy exposure to the US and western financial systems, VTB owns about one-fifth of Russia’s banking sector assets.
- Similar full blocking sanctions Bank Otkritie, Sovcombank OJSC and Novikombank and dozens of its subsidiaries have taken measures to prevent the assets of these institutions from touching the US financial system, and also prohibit Americans from doing business with them.
- New debt and equity restrictions Relating to 13 critical Russian financial institutions, including all transactions related to new debt with maturities longer than 14 days and new equity issued by 13 Russian state enterprises, restrictions on financing and other transactions. The list includes Sberbank, AlfaBank, Credit Bank of Moscow, Gazprombank, Russian Ziraat Bank, Gazprom, Gazprom Neft, Transneft, Rostelecom, RusHydro, Alrosa, Sovcomflot and Russian Railways. These organizations, with estimated assets of approximately US$1.4 trillion, will not be able to raise money from the US market.
- Additional full blocking sanctions against Russian elites and family members and individuals who “enrich themselves at the expense of the Russian state.” The heads of Russia’s largest financial institutions and those responsible for providing the resources needed to support the invasion of Ukraine are also targeted.
- Two dozen Belarusian individuals and organizations Sanctions were also imposed for supporting the attack on Ukraine. Among those affected are two leading Belarusian state banks, nine defense firms and seven others.
- Ministry of military and defense of Russia It is prohibited from purchasing nearly all US products and products manufactured in foreign countries using certain software, technology or equipment originating in the US.
- Defense, aerospace and marine technology It is subject to Russia-wide restrictions aimed at blocking Moscow’s imports of technology products. This also includes the refusal to export certain technologies across Russia. The US sanctions will also impose Russia-wide restrictions on some US technologies manufactured in other countries, including semiconductors, encryption security, lasers, sensors, navigation, avionics and marine technologies.
- License exemptions For countries that impose export restrictions to Russia, it will eliminate US licensing requirements for products manufactured in their own country. The EU, Australia, Japan, Canada, New Zealand and the United Kingdom have already submitted parallel action plans.