US President Joe Biden ordered sternly new sanctions targeting Russia after it launched an out invasion of Ukraine on On Thursday, declaring that Russian leader Vladimir Putin “chose this war” and that son country will bear the consequences.
The sanctions are intended to prevent Russia ability to do business in The world’s major currencies, namely the dollar, the euro, the pound and the yen. They also target Russian banks, oligarchs and high-tech sectors, Biden said. The United States and its allies will block assets of four major Russian lenders, impose the export controls and punish the oligarchs.
Biden also declared that the United States would deploy additional forces to Germany to reinforce NATO after the invasion of Ukraine, which is not a member of the defense organization. About 7,000 additional American soldiers will be sent.
The penalties fall in line with the White House’s insistence that it hit Russia financial system and Putin’s inner circle, while also enforce export controls which would aim to starve Russian industries and military of semi- American drivers and other tech products.
“Putin is the aggressor,” Biden said. “Putin chose this war, and now he and son countries will bear the consequences.”
Biden, for now hold off impose some of the most severe potential penalties, including cutting Russia out of the SWIFT payment systemwhich allows for the transfers of money from bank for bank around the globe.
Biden announced sanctions at the White House while Ukraine government reported increasing casualties inflicted by Russian forces attacking from the east, north and south.
Oil and natural product prices have already leaps over fear that Russia – an energy production giant – will slow the flow of oil and natural gas to Europe. Biden, however, acknowledged that the sanctions “are going to take time” to have their effect. effect on the Russian economy.
He also recognized that the invasion — and efforts to thwart Putin — will have a cost for Americans. But he sought to reassure that the economic pain that could arise with rising energy prices will be short-lived for their.
As for Putin, he said: “He will test the resolve of the West to see if we stick together, and we will.
Biden spoke hours after holding a virtual Meet with The leaders of Great Britain, Canada, France, Italy and Japan. European Commission President Ursula von der Leyen, European Council President Charles Michel and NATO Secretary General Jens Stoltenberg also joined the meeting.
President also met with his national Security team in the White House Situation Room as he stared in the flesh out we moves in the rapidly worsening crisis.
As Biden called the sanctions harsh, Ukrainian officials urged the US and the West to go further and cut the Russians off from SWIFT financial system.
“We demand disconnection of SWIFT Russia, the introduction of a no-fly zone over Ukraine and other effective steps to stop the aggressor,” Ukrainian President Volodymyr Zelenskyy said. in a tweet.
The Biden administration, however, has shown some reluctance to cut Russia off from SWIFT, at least immediately, because of concerns the move could also have huge ramifications for Europe and other Western economies. Biden, answering questions from reporters, appeared to push a decision on SWIFT to European allies.
“It’s always a option but right now it’s not the position that the rest of Europe wants to take,” Biden said. He also argued that the financial he sanctions announced would more detrimental to Russia.
Headquarters social Belgian system allows for tens of millions of daily transactions between banks, financial exchanges and other institutions. The United States has notably previously blocked Iran from system car of son nuclear program.
Officials in Europe noted that the loss of QUICK access by Russia could be a brake on the largest global economy. Russia has also equated a SWIFT prohibition with a declaration of war. And because the system cements the importance of United States dollar in global finances, pure and simple bans also wear the risk of to push countries for use alternatives through the Chinese government or blockchain-based technologies.
Senate Republican Leader Mitch McConnell expressed support Thursday and also urged Biden to apply maximum pressure on Putin.
“We are all together at this point and we need be together about what should be done,” McConnell said. “But I have a piece of advice: rattle the sanctions every way up. Don’t hold back any back.”
The sanctions notably target the two largest Russian banks, Sberbank and VTB Bank. The US Treasury Department says global sanctions “target almost 80% of all banking services assets in Russia and will have a deep and lasting effect on the Russian economy and financial system.”
Treasury also announced punishments against Belarusian banks, defense industry and security managers over support for Russian invasion of Ukraine.
Biden said the export control measures he ordered “would impose severe cost on the Russian economyboth immediately and over time.” The measures will restrict Russia access to semi-conductors, computers, telecommunications, information Safety equipmentlasers and sensors.
“We are going to harm their ability for compete in a top tech 21st century economy“, said Biden.