“Destructive sanctions”
“Russia does not have unlimited resources, especially now, given the crippling sanctions we impose. “They will have to choose between depleting their remaining dollar reserves, spending the new revenues, or going into default.”
According to him, the goal of the American administration “Depletion of resources (Russian President Vladimir. – socialbites.ca) must continue Putin’s activities against Ukraine.” A White House spokesman believes the sanctions are already showing their effectiveness and are “bringing the Russian financial system to the brink of collapse”.
Psaki also announced on Wednesday the adoption of another package of sanctions against the Russian Federation, which includes a ban on new investments in Russia.
“Tomorrow, in coordination with the G7 and the EU, we will announce an additional package of tough sanctions that will increase Russia’s costs and push Russia on the path of economic, financial and technological isolation. It will include banning all new investments in Russia, expanding sanctions on financial institutions and state-owned businesses, expanding sanctions on Russian government officials and their families,” the White House spokesperson said.
Psaki explained that the White House will not yet announce the specific institutions and officials that will be subject to sanctions.
“You can expect them to target Russian government officials, family members, Russian-owned financial institutions and state-controlled businesses,” he said.
US Treasury “hysterical”
State Duma Chairman Vyacheslav Volodin is confident that US sanctions and intentions will not work. According to him, “hysteria is growing in the US Treasury, confidence in the dollar is falling.” Putin’s decision to make ruble-denominated accounts for natural gas with unfriendly countries and “the discussion of expanding the list of goods for ruble trading has plunged the US Treasury into hysteria”.
“Washington’s plan has failed. The “hell” sanctions didn’t work. They expected to crash the economy, paralyze Russia’s banking system. It didn’t work,” Volodin wrote on his Telegram channel.
He reminded that the US Treasury has banned Russia from paying public debt from reserves frozen due to sanctions.
“There are funds in our country’s accounts that can fully fulfill its obligations, even under sanctions. “The situation the United States has created is hitting them and their citizens,” he said.
The MP also believes that the International Monetary Fund “did not accidentally conclude that anti-Russian sanctions undermine confidence in the dollar” because “its share in world settlements is declining.”
“Today, anyone who keeps money in dollars can no longer be sure that the United States will not steal its money. “This is the beginning of the end of the dollar monopoly in the world,” he said.
Ban on paying dollars to public debt
On April 4, Reuters reported, citing a source from the US Treasury, that the ministry will ban Russia from paying dollars to government debt in US banks.
“Today is the deadline for Russia to make a new debt payment. “From today, the U.S. Treasury will not allow the Russian government to make any dollar-denominated debt payments from its accounts at U.S. financial institutions.”
According to him, the Treasury Department did not allow correspondent bank JPMorgan to make the final coupon payments on government bonds. They would be produced on bonds maturing in 2022 and 2042. The correspondent bank processes coupon payments from Russia and sends them to the payment agent for distribution to foreign bondholders.
The article also states that on March 16, the Russian Federation must pay a total coupon of 117.2 million dollars to two issuances of sovereign Eurobonds, the first payment of its foreign debt will be made after part of the reserves are frozen.
Earlier, Bloomberg, citing statements from the US Treasury, reported that the current sanctions regime against Russia does not prevent payments in dollars, at least until the relevant license expires at the end of May.