USA’s Russia sanctions were announced by President Biden. He branded Russia’s incursion into Ukraine an invasion. The VEB and the Military Bank of Russia, as well as three people, were all hit with sweeping economic sanctions.
The US financial institutions will be unable to process transactions for VEB or the Russian military bank, PSB, as a result of the sanctions. This would effectively remove banks from transactions that utilize dollars throughout the world.
On Tuesday, the Russian parliament authorized President Vladimir Putin’s request to use military force outside of Russia’s borders, a development that appears to be intended to pave the way for a broader assault on Ukraine.
Biden added that the United States would implement comprehensive sanctions on Russia’s sovereign debt.
“That means we’ve cut off Russia’s government from Western financing… It can no longer raise money from the West and cannot trade its new debt on our markets, or European markets either.”
-Biden
USA’s Russia sanctions
The Biden administration imposed further penalties on VEB and Russian debt, as well as three individuals: two of whom are the sons of high-ranking Russian government officials.
In announcing the various penalties, Biden explained that Putin’s adult children were “sharing in the corrupt gains of Moscow’s decisions,” adding, “they should share in the pain as well.”
The measures targeting Russia’s sovereign debt build on previous restrictions Biden approved in 2021, which prohibit US banks from investing in or loaning to several important Russian sovereign debt funds.
The Treasury Department issued a comprehensive list of the organizations and people subject to sanctions Tuesday, as well as their subsidiaries and designations.
When Biden unveiled the tranche of sanctions, he took a significant rhetorical stride.
On Tuesday, the president of the United States had not used the phrase “invasion” to describe Russia’s military presence in the two eastern Ukraine secessionist areas himself. However, he noted that Putin’s recent actions had made his intentions clear.
“This is the beginning of a Russian invasion of Ukraine, as [Putin] indicated and asked permission to be able to do from his Duma… So I’m going to begin to impose sanctions in response.”
-Biden
Ukraine population
Ukraine is a country in Eastern Europe. It is the second-largest country in Europe by size, after Russia, which borders to the east and northeast. The current population of Ukraine is 43,301,680 as of Thursday, February 24, 2022.
United States would stand with Ukraine “no matter what”
Biden said that the reinforcement of NATO troops will continue to operate only in a defensive capacity, but that this should not be interpreted to suggest that the organization would not retaliate in kind to Putin’s military activities.
“Today, in response to Russia’s admission that it will not withdraw its forces from Belarus, I have authorized additional movements of U.S. forces and equipment already stationed in Europe to strengthen our Baltic Allies, Estonia, Latvia, and Lithuania… As Russia contemplates its next move, we have our next move prepared as well”
-Biden
The vice president said there was little evidence that Russia remained interested in diplomacy. He mentioned the recent movements of troops and supplies by the Russian military along Ukraine’s border, which he called “very concerning.”
“Russia has moved supplies of blood and medical equipment into position on their border… You don’t need blood unless you plan on starting a war.”
-Biden
The prospect of a war with Russia, Europe’s major gas and oil supplier, has sent markets into a tailspin and driven fear of higher oil costs.
On Tuesday, the S&P 500 closed in a correction and the Dow Jones Industrial Average fell more than 1.5 percent, having fallen 482.57 points (nearly 1.5 percent).
Biden said he would do everything in his capacity to protect American consumers from the expense of Russia’s actions, but gas prices are expected to rise.
“Here at home, defending freedom will have costs for us. That has to be acknowledged.” He continued, “We must acknowledge that we are working with other major oil-producing nations to develop a strategy to stabilize prices.”
“I want to limit the pain the American people are feeling at the gas pump. This is critical to me.”
-Biden
Gas prices may rise as a result of the growing cost of living in the United States, which is currently experiencing its highest inflation in decades.
Biden also said the United States would stand with Ukraine “no matter what,” and that he was prepared to impose additional sanctions if Russia advanced.
“If Russia goes further with this invasion, we stand prepared to go further as with sanctions.′
-Biden
