Administration officials have studied the impact of sanctions on individual banks, including Sberbank and VTB, Russia’s two largest banks. Sberbank has about a third of the assets in the country’s banking sector, and VTB has more than 15 percent. Some experts doubt that the authorities will put those two banks on the SDN list out of fear of consequences for the Russian and global economy. For now, US officials are not ready to cut off all Russian banks from FastBelgium’s key money transfer system used by more than 11,000 financial institutions worldwide.
The Treasury Department has other sanctions lists that will impose costs while causing less widespread suffering. For example, it might blacklist a bank to prevent it from doing any dollar-related transactions. Many international trade transactions are conducted in US dollars, the currency that underpins the global economy.
The Ministry of Finance is also expected to put many Russian officials, businessmen and companies on the sanctions list.
On Thursday afternoon in Russia, the country’s stock market fell almost 40%.
The Ministry of Commerce has been planning restricting the export of certain US technologies with Russia, a tactic the Trump administration has used to thwart Huawei, the Chinese telecommunications company. The controls will damage supply chains for some Russian sectors. US officials say their targets include the defense industry and the oil and gas industry.
European officials are expected to announce sanctions similar to many that the United States has planned, as they did this week. However, they have been more wary of imposing the harshest sanctions because of the continent’s strong trade ties with Russia.
Although Mr. Biden said he would consider any possible sanctions, US officials do not currently plan to cause major disruptions to Russia’s energy exports, which are a mainstay. of the economy of this country. Europe depends on products and rising oil prices around the world will cause greater inflation and more problems for politicians. However, Germany announced this week that it will not certify Nord Stream 2, a new natural gas pipeline connecting Russia and Western Europe. On Wednesday, Mr. Biden announced sanctions on a subsidiary of Gazprom, the major Russian energy company, which built the pipeline and planned to operate it.
“We have been frank, we have been frank with the American people that our measures – the ones we have and are prepared to impose on the Russian Federation – will certainly not be free for the Russian Federation. ,” Ned Price, a spokesman for the State Department, said Wednesday. “But they also won’t be completely free for the rest of the world.”
https://www.nytimes.com/2022/02/24/us/politics/ukraine-russia-whats-next.html Ukraine crisis: What happens next for the rest of the world?