Biden hits Russia with new export controls and financial sanctions

Biden pointed out that this latest round of sanctions was developed in coordination with the 27 countries of the European Union, as well as the United Kingdom, Japan, Australia, Canada, New Zealand and others. not named.

“We will limit Russia’s ability to do business in dollars, euros, pounds and yen to be part of the global economy,” he said.

‘Hit’

The latest financial sanctions will impact nearly 80% of Russia’s banking assets, according to a press release from the Treasury, including its two largest banks.

Notably, the toughest possible financial restrictions, known as “full lockdown sanctions”, have been imposed on Russia’s second-largest bank, VTB Bank, along with three other major Russian financial firms: Bank Otkritie , Novikombank and Sovcombank OJSC. Such a blacklist means that it is now illegal to do any type of business transaction with these banks.

A slightly less severe sanction was imposed on Russia’s largest bank, Sberbank, which prohibits the bank from carrying out – from one month – transactions in US dollars, although other less popular types of transactions denominated in foreign currencies are not prohibited, according to Adam M. Smith, sanctions lawyer at Gibson, Dunn & Crutcher.

James V. Hayes