The sweeping package would “impose significant costs on Russia and send it further down the path of economic, financial and technological isolation,” the official said.
The new sanctions package will ban all new investments in Russia, increase sanctions on financial institutions and state-owned enterprises in Russia, and approve Russian government officials and their family members.
The new embargo will mark the latest expansion of the US and its allies’ efforts to impose costs on Russia’s invasion and, over time, cut off key economic sectors the country will use to wage ongoing war. Officials say they are following new revelations about further atrocities committed by Russian forces in northern Ukraine, and that images of the atrocities in Pucha are fueling ongoing negotiations between the United States and its European allies to increase economic costs.
“These actions will undermine key instruments of Russian state power, impose a severe and immediate economic impact on Russia, and hold Russia’s cryptocurrency responsible for financing and supporting Putin’s war,” the official said. “These actions will be taken in a locked-up position with our allies and partners, as a sign of our commitment and solidarity in imposing unprecedented costs on Russia against Ukraine.”
The expected sanctions come after the US Treasury announced that Russia would not allow the use of dollars stashed in US banks to repay its debt. As Washington imposed sanctions on Russia’s central bank, the Treasury Department allowed Russia to use the reserves to repay its debt to US banks in order to freeze their foreign currency.
This is a move that officials say could significantly increase the risk of the central bank defaulting and reducing emergency efforts to stem the economic bleeding that immediately gripped the Russian economy following the Western response to the invasion.
Since Russia’s invasion of Ukraine in late February, the United States and its allies have allowed hundreds of Russian elites and lawmakers to restrict access to Western technology, which is important to its defense and technology sectors, and halve Russia’s foreign reserves. Disabling specific Russian banks from the Swift banking network, other steps. The United States has also banned Russia’s imports of oil, natural gas and other energy products.
While the intensity and pace of Western sanctions against Russia has never been greater, there have been major setbacks as US officials continue to monitor US and European supply chains and seek to limit the impact of sanctions on Western economies struggling with record-high inflation. .
Sanctions will take time to ‘destroy’ the Russian economy
While the United States and its allies have imposed the largest sanctions on a country the size of Russia in history, officials acknowledge that it has done little to change Putin’s calculations.
The threat of sanctions did not deter the invasion, and the accumulation of economic sanctions did not bring Russia closer to a withdrawal or a negotiated settlement.
Nevertheless, the administration’s policy of sanctions, guided by a group of veterans involved in responding to the last Russian incursion into Ukraine in 2014, has been measured over time to disconnect key components of the Russian economy and, most importantly, in an integrated and multidisciplinary way.
The superficial objective of maintaining solidarity with more than 30 countries on the four continents that have joined the embargo is the central driver of the Russian economy: limiting their limits on energy.
EU members’ reliance on Russian oil and gas has curtailed the scale of sanctions targeting the energy sector, even as the United States moves unilaterally to ban Russian oil imports. This has created pressure to tackle rising energy prices around the world.
However, the shameful nature of the Russian offensive has dramatically changed the willingness of some European leaders to sign up for expanded economic sanctions. The European Union now plans to ban Russian coal imports, and despite some persistent protests, officials said the move to extend the embargo to add oil and gas would continue to get steam.
Nevertheless, to focus on the immediate impact of sanctions, officials point to key areas of their efforts that have the greatest impact as the conflict continues to prolong. Export restrictions, which target key economic sectors, are designed to cut off access to the technology needed for the Russian industrial base to continue production in defense, aerospace and biotechnology.
Sanctions targeting the central bank will, over time, systematically thwart Russia’s efforts for years to protect its economy from foreign currency reserves.
The expansion of personal barriers to include family members beyond key Russian officials and financiers is aimed at cutting off key avenues to protect wealth from new penalties.
“It will take time to grind the elements of the Russian power into the Russian economy, to strike hard at their industrial base, to prop up this war, and in Russia … to attack the sources of revenue that have propped up the cryptocurrency.” Biden’s national security adviser Jake Sullivan told reporters Monday. “But now is not the best time to end costs and work to sharpen Russia’s choice.”
US bans Russia’s ‘most important’ dark internet market
The U.S. Treasury Department said on Tuesday that Russia’s “most important” dark web marketplace was the site where cybercriminals sold hacking tools and transferred millions of dollars in ransomware payments.
The sanctions are in line with German police’s crackdown on Hydra’s computer servers, known as the Dark Web Market, and the seizure of $ 25 million worth of cryptocurrency.
Dmitry Olegovich Pavlov, a 30-year-old Russian resident, was indicted by the Judiciary on Tuesday on charges of conspiracy to commit drug and money laundering in connection with his alleged involvement in running Hydra’s computer servers.
Since its inception in 2015, Hydra Dark Web Market – a web-based network accessible through specialized software – has been a haven for illegal trade, researchers and U.S. officials say. According to Elliptic, a cryptocurrency monitoring company, Hydra has more than $ 5 billion worth of bitcoin transactions.
The attacks on US companies include a $ 8 million ransom for hackers who used three major ransomware types.
“The global threat of cybercrime and ransomware originating in Russia and the ability of criminal leaders to operate there without punishment are deeply ingrained in the United States,” said Treasury Secretary Janet Yellen in a statement.
Following the ransomware attacks on key US infrastructure last year, the Biden administration sought to curb funding for cybercriminal gangs. In September, the Treasury Department approved Suex, a cryptocurrency exchange, which U.S. officials have accused of being behind eight types of ransomware and trading with hackers.
This story has been updated with additional information.