In response to the Ukraine invasion, President Joe Biden was short to deploy a whole package of sanctions over Russia, the most significant against a country of the Eurasia giant’s caliber. From asset freezes to equity and debt restrictions, the main targets are the banking, technology, and aerospace industries.
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As reported by CNN Politics, the U.S. froze the assets of Russia’s biggest lenders, Sberbank Rossii PAO (MCX:SBER) and Bank VTB PAO (MCX:VTBR), with which Biden looks to restrict operations and dent their position in the global banking system.
“Three additional major Russian banks and their respective subsidiaries had their assets frozen, while the financing restrictions targeted critical state-owned companies including Gazprom PAO (MCX:GAZP), Rostelecom PAO (MCX:RTKM), AlfaBank and RusHydro — Federal Hydro-Generating Co RusHydro PAO (MCX:HYDR).”
The technology sector was also the subject of sanctions, which consist of blocking the arrival of key components to Russia. With the measure, Biden aims at weakening the country’s aerospace, defense, and maritime industries.
“The joint effort was aligned with the European Union, as well as several other key Western allies including the UK, Japan, and Canada,” CNN informs.
"Most Consequential Sanctions In History"
Deputy national security adviser Daleep Singh, was quoted as saying: “The sanctions measures we imposed today, I think without question, are the most consequential ever levied on Russia and arguably the most consequential ever levied in history.”
However, Biden did not impose any sanctions on Russia’s energy sector, as this would unleash more inflationary pressure via the increase in gas prices in the U.S. —amid a Covid-led upsurge in consumer prices.
On Thursday, Biden told reporters that personal sanctions against Vladimir Putin and disconnecting Russia from the SWIFT are measures that remain an option. However, his administration is taking into account Europe’s reluctance to the possibility, since the payments of Russian energy rely on the system.
The U.S. president said: “This is going to take time… And we have to show resolve so he knows what's coming and so the people of Russia know what he's brought on them. That's what this is all about.”