The United States imposed unprecedented strict sanctions on the Central Bank of Russia on Monday, which is intended to help them reduce in response to the invasion of Ukraine.
Washington immediately banned transactions with Russian financial institutions and announced the Treasury before the opening of the US market. “”This decision has the effect of fixing all assets held by the Central Bank of Russia in the United States or would be held by Americans everywhere.“, It is specified in the press release.
In fact, this decision severely limits Moscow’s ability to use abundant foreign exchange reserves to buy rubles in connection with similar sanctions by many US allies.
These operations to protect the already collapsed Russian currency “No longer possible, the “Russian fortress” remains defenseless“A senior U.S. government official commented during the conference call.
He said that these adjusted sanctions were “Virtuous circle“For the Russian economy, and foresee:”Inflation will surely skyrocket, purchasing power will collapse, investment will collapse“.”Our goal is to ensure that the Russian economy shrinks as long as President Putin decides to advance the invasion of Ukraine.“, According to senior officials.
The United States has also imposed sanctions on the Russian Direct Investment Fund, a public financial institution that Russia used to raise funds abroad and is headed by a close associate of Russian President Kirill Dmitriev.
“”This fund and its management are a symbol of Russia’s serious corruption and the selection of its influence.“Overseas, we estimated the above sources.
Canada followed US leadership in making similar decisions.
“”From now on, Canadian financial institutions will be banned from doing business with the Central Bank of Russia. This prevents him from deploying Russia’s foreign exchange reserves and further limits Putin’s ability to fund the war of his choice.“, Announced Prime Minister Justin Trudeau of Canada.
Russia’s foreign exchange reserves were $ 634 billion at the end of last week. According to official data, a high level was achieved by partially diverting oil and gas revenues.
However, it is unclear how much of Russia’s foreign exchange reserves are held in US dollars, as the Biden administration has not given an estimate.
New restrictions imposed by the United States and its allies on the sale of rubles to Russia will undermine the country’s ability to support its currency in the face of new sanctions imposed on the financial sector. Is aimed at.
France is preparing to freeze more Russian assets
The French government is ready to extend the asset freeze measures already decided with the support of the European Union to more Russians, Minister of Economy Bruno Le Mer announced on Monday.
“”We (…) identified all Russians in French assets. These people are close to Russian power and could be added to these European sanctions. We have the legal means to deprive all of these good things.Bruno Le Mer said in a short speech at the Elysee Palace after a new defense council organized by French President Emmanuel Macron.
After Russia invaded Ukraine, the European Union announced a series of financial sanctions on its leaders and personalities near Russia, the Kremlin, especially asset freezes and bans on European territory.
“”At the request of the (French) President of the Republic, we continue to have a full inventory of real estate, yachts and luxury car financial assets belonging to the Russian personality under European sanctions.“I showed the mayor.
On his side, Foreign Minister Jean-Yves Le Drian announced:measures“I will be photographed”In a very short timeAgainstRussian propaganda agency“People who carry out the actions of”Disinformation“In Europe.
On Sunday, European Commission President Ursula von der Leyen announced that Russian state media Russia Today (RT) and Sputnik will be banned from the European Union to block their broadcast. did.LieAbout the Moscow war in Ukraine.
On the economic front, Bruno Le Mer is one of the major suppliers of these metals (titanium, nickel, etc.) this week on the conflict between Russia and Ukraine and the issues related to the supply of particularly important parts and metals.