The United States government announced this week, in coordination with the G7 members and the European Union, a new sanctions package against Russia in response to the invasion of Ukraine. The measure includes, among other provisions, a ban on new investments in Russia.
The sanctions package was framed in response to the reported massacre of civilians in the Ukrainian city of Bucha. It consists of what officials described as “destructive economic measures” that impose the toughest financial penalties to date on Russia’s largest bank and several critical state-backed enterprises, as well as targeted actions against government officials and their families.
Around the package, allies blocked the assets of Russia’s biggest financial institution, Sberbank, and the largest private bank, Alpha Bank, in the United States, while prohibiting American entities from conducting business with either institution.
Additionally, President Joe Biden is expected to sign an executive order prohibiting new investments in Russia by Americans, wherever they are located. The goal, as described by administrators, is to “further isolate” Russia from global markets and follows the exit of more than 600 multinational companies from the Russian market.
The United States has also vetoed American dealings with Russian state-owned enterprises and frozen assets under the jurisdiction of the United States. This step is intended to hinder the Kremlin’s ability to utilize those resources to finance the war in Ukraine. The Treasury Department is expected to publicly identify the named companies in a forthcoming release on Thursday.
Regarding sanctions targeting officials and their families, the United States has expelled them from the American financial system and frozen their assets. Among those affected are the adult daughters of President Vladimir Putin, the wife and daughter of Foreign Minister Sergei Lavrov, and members of the Russian Security Council, including former President Dmitry Medvedev and the current premier, Mikhail Mishustin.
Officials stated that those individuals stood to gain from the regime’s policy while Russian citizens bore the consequences of the measures. The White House underscored that the targeted individuals and their networks benefited the Kremlin’s war effort in Ukraine.
Finally, the U.S. Treasury barred Russia from making debt payments with funds held within American jurisdiction, and Western allies pledged to support sectors deemed essential for humanitarian activities benefiting Russian citizens.