Biden Says U.S. Allies Are ‘United in Support of Ukraine’
February 22, 2022–President Joe Biden announced new sanctions against Russia, two Russian banks and individuals today in the wake of Russia’s breach of Ukraine’s borders.
Biden said the new sanctions go that “far beyond” those enacted in 2014. This comes in response to Russian President Vladimir Putin‘s recognition of two Ukrainian regions as independent and Russia’s invasion of Ukraine.
New ‘First Tranche’ of Sanctions
The new U.S. sanctions apply to:
- Two state-owned financial institutions, VEB and PSB, which support Russia’s defense capability and its economy.
- Russian elites, including Denis Aleksandrovich Bortnikov, a Russian official and an executive at VTB Bank, Petr Mikhailovich Fradkov, chairman and CEO of PSB Bank,and Vladimir Sergeevich Kiriyenko, a top aide to Putin.
- Russian oil tankers, cargo vessels and a container ship.
- and sovereign debt by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and Russia’s the Ministry of Finance as of March 1, 2022.
Tougher Sanctions Than 2014
The United States and the European Union imposed sanctions on Russia after that country invaded and annexed Ukraine’s Crimea in 2014. Russia has been able to side-step those sanctions by using methods such as import substitution, increasing military spending, and foreign investment. Furthermore, Russia has strengthened its relationship with China.
According to a release by the U.S. Treasury, the sanctions include a long list of subsidiaries of VEB and PSB.
Today’s action follows an executive order by Biden on Monday against the two breakaway regions of Ukraine. Biden said in total, this week’s reaction is “the first tranche of sanctions” against Russia. Additional actions might include export controls and blocking Russia from SWIFT financial transactions, Biden’s spokesperson said.
The conflict is likely to have an impact on energy supplies, including the oil and natural gas markets.
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