Why US sanctions against Russia’s central bank are a big step | Ukraine | Financial sanctions | SWIFT

[The Epoch Times, March 1, 2022](The Epoch Times reporter Wang Xiang comprehensive report) The US Treasury Department imposed sanctions on Monday (February 28)RussiaCentral Bank, bans transactions with the Russian Central Bank and Russian foreign investment funds, imposes stricter restrictions on the Russian economyfinancial sanctions

New sanctions will effectively cut offRussiaThe central bank’s ties to the U.S. dollar have severely limited Russian President Vladimir Putin’s ability to ease previous sanctions.

U.S. individuals and businesses cannot now conduct any financial transactions with or on behalf of the Russian Central Bank, the National Wealth Fund or the Treasury Department.The sanctions also prohibit any foreign financial company from makingCentral Bank of Russiathe Treasury Department and the Wealth Fund send dollars.

As the new measures took effect on Monday, U.S. officials said they could push up inflation in Russia, sap its purchasing power and prompt a drop in investment.

The Treasury Department also said it would make exceptions for certain energy-related payments to prevent a sharp spike in global oil and gas prices.

Last week, Washington imposed several rounds of sanctions, including on Russian President Vladimir Putin and major banks, over the invasion of Russian troopsUkraine

“Our goal is to ensure that if President Putin decides to go ahead with the invasion,” a senior U.S. government official told the media on Monday.Ukraineaction, then the Russian economy will go backwards, and we have the tools to continue doing so. “

Washington and its allies said on Saturday (26th) that they wouldCentral Bank of RussiaTake action and ban some Russian banks from the SWIFT international payments system, a list that officials say is still being finalized with EU partners.

Russia’s central bank more than doubled its key policy rate on Monday and introduced some capital controls, but its governor said sanctions had prevented it from selling foreign currency to prop up the rouble.

Russia’s economic reality has changed, the Kremlin said on Monday, but there was no reason to doubt the effectiveness and reliability of the central bank, which raised interest rates in an attempt to shield the economy from unprecedented Western sanctions.

Kremlin spokesman Dmitry Peskov said Putin would meet several officials on the day, including the finance minister and central bank governor. He said Russia has a plan to deal with sanctions.

Think Tank: “A Colossal Example of Western Solidarity”

Mark Sobel, U.S. president of the Official Forum of International Monetary and Financial Institutions (OMFIF) think tank, said the move was “a huge example of Western solidarity”. The forum serves central banks, economic policy and public investment.

Sobel told Archyde.com: “It all happened overnight, and its power basically cut off an important country from the global financial system.”

Russia’s sovereign wealth fund, the Russian Direct Investment Fund (RDIF), is also among the targets of the latest sanctions. The company sells the Russian-developed COVID-19 vaccine Sputnik V internationally.

The company’s chief executive, Kirill Dmitriev, has been accused by Washington of being a close ally of Putin and has been included in the sanctions.

In a statement, RDIF said it was not involved in politics and said the restrictions could complicate its promotion of Sputnik V.

“The imposition of sanctions on RDIF demonstrates that the United States has chosen a course of undermining constructive dialogue among nations, and RDIF has stood for building international relations and supporting constructive relationships from the moment of its inception,” the statement said.

Sanctions against Russia are rare in history, far surpassing Venezuela and others

CNN’s Phil Mattingly said the cost to Russia and Putin is piling up as more sanctions are imposed.

Mattingly said the decision by the alliance of Western and Asian nations to “freeze all assets (of the Russian central bank)” was “the most dramatic step to date” that “can be seen as the heartbeat of the Russian financial system.”

Mattingly said Russia has the world’s fourth-largest foreign exchange reserves of more than $630 billion, which essentially allow Putin and Russia to “prop up their own currencies” and allow them to “provide liquidity to their banks.”

Sanctions like this are extremely rare, Mattingly said.

“Now, when you want to figure out how rare this is against a country’s central bank. Look at the previous target countries — Venezuela, Iran, Syria, all seen as malicious actors. The difference here is, no A country with an economy the size of Russia, $1.7 trillion … has never been sanctioned like this before.”

“It just underscores the moment and the scale of the response we’re in right now,” Mattingly added.

energy supply

The U.S. Treasury Department’s actions on Monday were accompanied by a general license authorizing certain energy-related transactions with Russia until June 24.

The Biden administration has been concerned that its sanctions could raise already high gas and energy prices.

Washington will continue to adjust measures against Russia to limit the impact felt at home and allow for a steady supply of energy to global markets, the officials said.

They also warned that the U.S. would not hesitate to take further action against Russia and was actively exploring critical technological measures needed to cut off Russia to remain a major energy producer for an extended period, citing that the EU has already similar measures taken.

Washington is also keeping a close eye on Belarus, they said, adding that it could face more punitive action if Russia’s allies continue to assist Moscow’s incursion.

Responsible editor: Lin Yan#

1 thought on “Why US sanctions against Russia’s central bank are a big step | Ukraine | Financial sanctions | SWIFT”

  1. Some think PUTIN had BAD INT

    There is NO INT failure !

    Putin has made a 3 pronged attack – and each is a hedge !

    The shortest route to Kiev was from Belarus – but that would drag Belarus, into the war ! If Bela is sanctioned – then the troops will pour in,from there !

    A 1 single sided attack would have allowed UKR from South and North, to attack and also choke the Supply lines from the South And East,As of now,UKR troops are bogged down in South,East and North – WHICH IS WHAT PUTIN WANTED !

    He is quarantining the UKR army in 4 zones – and then choking them of arms,food,fuel,drugs and is pounding them !

    Now,UKR has 3 logistics supply chains of Russia to break – and even if they succeed in 1 – the other two will move ahead !

    Also,the key for Putin is to take the UKR airports.Once that is done,the logistics supply chain and time – shrinks and has a new variable !Troops and fuel can be airlifted to Kiev and other locations in less than 40 minutes from Russian airfields That is Y intense battles are on at all key airports.

    Once UKR knows that Kiev and Airports will fall,then the UKR ARMY WILL HAVE TO BLOW UP THE AIRPORTS AND ALL FUEL DUMPS.That will be end of the UKR army and the start of urban war !

    As of today,there is ENOUGH FUEL and FOOD in UKRAINE AND PUTIN’S ARMY CAN JUST STOCK UP ON THE SAME – AND THERE IS NO NEED FOR THESE – THEY ONLY NEED THE MILITARY ORDINANCE SUPPLY CHAIN ! EVEN THERE,THE RUSSIAN TROOPS ARE NOT TOO FAR FROM THE RUSSIAN BORDER !

    PUTIN IS CRUISING AHEAD ! IF HE WANTED,HE COULD HAVE SHUT DOWN THE POWER AND GAS GRID AND WATER SUPPLIES AND THE WEB – BUT HE DID NOT !

    Y ?PUTIN WANTS TO RUN UKRAINE ! dindooohindoo

    IF HE FOLLOWED THE US PATH IN IRAQ – HE WOULD HAVE TAKEN OVER UKRAINE,BY NOW !

    Reply

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