Descriptive Category: So far, look at the Western sanctions against Russia

By Ellen Kinkiemeyer, Fatima Hussein and Ken Sweet – Associated Press

WASHINGTON (AP) – The United States has joined European allies in a dramatic increase in financial sanctions against Russia over the invasion of Ukraine, and Western sanctions have failed to stop Russian President Vladimir Putin from launching a military coup.

Two of the key new initiatives target the Central Bank, the heart of Russia’s financial system, and cut off an unspecified number of Russian banks from Swift’s financial network. SWIFT is an integral part of global banking and banking services that move from bank to bank around the world.

U.S. and European officials are still working to enforce sanctions, but European Union (EU) has said it will not allow Russia to buy natural gas.

US officials say the move will weaken the Russian ruble and strengthen its currency. The latest round of sanctions is the latest in a series of high-profile sanctions against Russia.

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See Saturday’s metrics and previous ones. In general, it may include some of the most severe sanctions imposed on any country in our time.

Hitting the Central Bank of Russia

The United States, the European Union and the United Kingdom have announced a new embargo on Russia’s central bank, limiting the Kremlin’s reserve capacity to more than $ 600 billion. If the West implements the central bank’s restrictions as intended, it will weaken Russia’s ability to devalue the ruble as sanctions intensify in the West.

The Russian official said in a statement: “The Russian ruble is in the throes of a free trade deficit.

In particular, Russia’s central bank measures, which limit Russia’s ability to sell at international reserves, will deprive the Kremlin of the best possible tool to boost the Russian currency.

“Banking is working. When Russians line up at banks to get their rubles and secure dollars, it will probably get worse,” said Clay Larry, executive vice president of the International Monetary Fund. And the dollar race in Russia is causing water shortages in the central bank.

He said the central bank’s move, coupled with the new Swift border demarcation between Europe and the United States, “could have serious consequences for Russia’s economy and the banking system.”

Monitoring a country’s central bank is a rare but unprecedented step by the international community.

The key to Saturday’s move is to discontinue Russian banks from SWIFT’s financial messaging system.

When Russia invaded and occupied Crimea in 2014 and supported the separatist forces in eastern Ukraine, partners on both sides of the Atlantic took the Swift option. Russia declares withdrawal from SWIFT equals declaration of war Partners – For Russia They criticized her for her poor response to the 2014 attack – and then dropped the idea. Since then, Russia has tried to develop its own financial system, with some success.

The United States has previously succeeded in persuading Belgium to suspend its Swift system, based in Belgium, on its nuclear program. However, Russia’s withdrawal from SWIFT could hurt other economies, including the US and key partners Germany.

The SWIFT deal, which was announced in the West on Saturday, is part of a wider crackdown, leaving parts of Europe and the United States even tougher sanctions.

Western officials have refrained from including the Swift embargo in the first round of sanctions, partly because of the impact it could have on other economies that buy Russian oil and natural gas.

Officials say they will work to limit the impact of the embargo on other economies and Russian energy purchases in Europe.

Depreciation of Russian banks against the US dollar

The embargo, which began within hours of Russia’s announcement of an attack last week, includes sanctions against Russia’s largest bank, which owns about 80 percent of the country’s banking assets, according to the Treasury Department.

This includes two Russian-owned state-owned SberBank and VTB. The US says it owns nearly $ 750 billion in assets, more than half of Russia’s total.

Thursday’s ban on the banks uses the United States’ special power in the dollar, which is the preferred currency in international trade.

Targeted businesses make tens of billions of dollars every day. The US is now withdrawing from the US financial system and the US dollar. The goal is to make ordinary trade issues as well as international trade more difficult for banks and Russia.

Other US measures have targeted key public and private businesses in Russia, making it difficult to raise funds to invest and operate.

The US has also imposed sanctions on Russia’s top financial, political and security parties, including many Russian experts, bankers and other powerful figures.

Hungry Russian businesses, US high tech

Export controls announced earlier this week by the Biden administration show another strong advantage of the United States – US semiconductors and other high-tech equipment.

President Joe Biden has said that the new US trade restrictions will deprive Russia of more than half of its current high-tech supply. Russia has said it will “harm” its plans to modernize its military, its trusted aerospace industry, its space program, its shipping and other industries.

“By reducing their economic competitiveness,” high-tech barriers “will be a great achievement for long-term strategic ambitions,” Biden said.

The US Export Control is expected to prevent Russian industries and the military from working with state-of-the-art software and advanced electronic devices to fly fighter jets and passenger jets, as well as smartphones.

The United States says the European Union, Japan, Britain and other countries are cooperating in Russia’s efforts to starve the tech giants.

The US response could include Russia, which includes Cuba, Iran, North Korea and Syria, as the most restrictive group.

Due to the global dominance of US software, technology and equipment, Russia has limited access to integrated circuits and integrated circuits. The impact could be on aircraft aviation, machine tools, smartphones, gaming consoles, tablets and televisions.

However, US embargoes could jeopardize trade with other countries, including China.

Delicious from New York.

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