Add Sanctions, US Will Freeze Russia’s Central Bank

Jakarta, CNBC Indonesia – The US government under Biden on Monday (28/2/2022) announced that it was imposing additional sanctions on Russia’s central bank.

This resulted in these banks being unable to do any business with Americans, as well as freezing their assets in the US.

Not only the central bank of Russia, these new measures are also planned to target the National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation.

This comes after the US, EU, UK and Canada had previously announced that they would limit Russia’s ability to use its central bank reserves.

They agreed to remove the main Russian banks from the interbank messaging system, Society for Worldwide Interbank Financial Telecommunications (SWIFT), an extraordinary move that would separate the country from much of the global financial system.

This will obviously prevent Russian banks from communicating securely with banks outside their borders.

“We want to take this action before our markets open because what we learned over the weekend from our allies and partners is that the Central Bank of Russia is trying to move assets and there will be a lot of asset run from today. Monday morning from institutions around the world, ” said one of Biden’s senior staff officials quoted from CNBC International, Monday (28/2/2022).

“Our strategy is simply to ensure that the Russian economy retreats. As long as President Putin decides to continue his invasion of Ukraine,” the official added.

Furthermore, the US will also add Kirill Dmitriev, another ally of Russian President Vladimir Putin, to the list of sanctions and direct investment funds led by Dmitriev.

[Gambas:Video CNBC]

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Jackson Wintringham

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