US extends sanctions by imposing sanctions on Russian Central Bank assets

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US extends sanctions by imposing sanctions on Russian Central Bank assets

The Treasury Department on Monday announced further cuts to Russia from the global economy, announcing that it would freeze assets of the Russian Central Bank held in the United States and impose sanctions on the Russian Direct Investment Fund, a sovereign wealth fund. Close aide of President Vladimir V. Putin.

The moves are meant to stifle Russia’s ability to use its war chest of international reserves to blunt the effects of sanctions imposed by the United States and European allies in response to Russia’s invasion of Ukraine.

Treasury Secretary Janet L. Yellen said in a statement, “The unprecedented actions we are taking today will limit Russia’s ability to use the assets to finance its destabilizing activities, and to target the funds of Putin and his inner circle.” to enable an invasion of Ukraine.” Statement.

As a result of the sanctions, Americans are barred from participating in any transactions involving the Russian Central Bank, Russia’s National Wealth Fund. Or the Russian Ministry of Finance.

The moves represent a significant escalation of US sanctions, although the Treasury Department said it was granting waivers to ensure that transactions related to Russia’s energy exports could continue. It is issuing a “general license” to authorize certain energy-related transactions with the Russian Central Bank.

On Saturday, the European Commission, Britain, Canada, France, Germany, Italy and the United States said they would remove some Russian banks from the SWIFT financial messaging system, essentially barring them from international transactions, and on Russia’s central bank. New restrictions will be imposed. Prevent it from using its large international reserves to circumvent sanctions.

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Russia has accumulated $643 billion in foreign exchange reserves over the past several years by siphoning off its oil and gas revenues, bolstering its defenses against sanctions. The new sanctions by the United States and its allies against selling the ruble to Russia are intended to undermine the country’s ability to support its currency in the face of new sanctions on its financial sector.

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