2023-12-23 05:01:00
The president of the United States, Joe Biden (photo), signed a decree this Friday that will allow sanctions to be imposed on foreign banks that support Russia’s war efforts in Ukraine, on the same day that Moscow did not rule out breaking diplomatic relations with Washington.
The measure would authorize the United States to issue secondary sanctions against financial institutions that support the Russian defense industry. “This is about further tightening control over the Russian war machine and those who make it work,” US national security adviser Jake Sullivan said in a statement. “We are sending an unmistakable message: anyone who supports Russia’s illegal war effort risks losing access to the American financial system,” he added.
Washington intends to weaken the mechanisms established by Russia to avoid the sanctions and embargoes accumulated by the West since the beginning of the war. In fact, he is confident in the deterrent effect of the announcement, which occurs in the midst of difficult negotiations in Congress to approve a new financial aid package for kyiv.
“What we want is to target the materials that Russia needs to produce weapons. To obtain these materials, the Russians have to go through the financial system, which makes them a potential hotspot, and this tool targets that hotspot,” a senior White House official who requested anonymity told reporters Thursday. “Banks have the option of continuing to sell a modest amount of goods to the Russian military industry, or being connected to the US financial system. They will choose to be connected to the country’s financial system,” he stressed, while indicating that the majority Some European and American banks have already stopped financing activities in Russia.
“We are prepared for any scenario”
Since the war began in February 2022, Western countries have adopted numerous asset-freezing measures against Russian entities, individuals or companies. They also multiplied prohibitions on importing raw materials or merchandise, with the aim of slowing down the war machine and weakening the economy.
According to Washington, Russia developed military cooperation with Iran, which supplies it with drones, and with North Korea. But almost two years after the start of the war, the Russian economy appears to be resisting. Moscow continues to sell hydrocarbons, especially to China and India, and, according to experts, has found mechanisms to circumvent measures such as the limit on the sale price of its oil imposed by the West.
The International Monetary Fund (IMF) projects growth of just over 2% for the Russian economy this year, and 1% next year. The next big step in financial action against Moscow, for the United States and its allies, could be to confiscate Russian funds deposited in Western banks, already frozen, to finance Ukraine.
This Friday, the Russian authorities did not rule out breaking diplomatic relations with the United States if they finally use the funds that have been frozen, as part of the sanctions, to finance the reconstruction of Ukraine. “Diplomatic relations in themselves, of course, are not some kind of totem that should be worshiped,” explained Deputy Foreign Minister Sergei Ryabkov in an interview for the Interfax news agency. “I’m just saying to be clear: we are prepared for any scenario. The United States should not be under the illusion that Russia is holding on with both hands to diplomatic relations with that country, which are in a coma,” he added.
#sanction #foreign #banks #support #Russia #Ukraine #President #Joe #Biden #established #decree