Sunday, July 14, 2024
HomeNews ReportsBiden announces sanctions against Russian banks and 'elite' over Ukraine issue, says working to...

Biden announces sanctions against Russian banks and ‘elite’ over Ukraine issue, says working to keep gas prices in control

There are concerns that the current situation would have a direct impact on the gas prices in the US. Biden said his administration is monitoring the supply chain and working on ensuring undisruptive global energy supplies to keep the price and inflation in control.

On February 22, Joe Biden, the President of the United States of America called Russia’s recognition of the DPR and LPR breakaway regions out of Ukraine as an ‘invasion’ and announced the first set of sanctions against the breakaway republics. He added further sanctions would be imposed if Russia continued the incursions.

The sanctions have been imposed in the light of an announcement by Russia’s President Vladimir Putin on Monday where he signed a decree after deliberations with the Russian national security council and recognized the two separate nations out of Ukraine. Later, he has approved the deployment of Russian troops as ‘peacekeeping forces’ in the DPR and LPR regions too.

In his statement, Biden said, “This is the beginning of a Russian invasion of Ukraine. Russia has now undeniably moved against Ukraine by declaring these independent states.” He questioned by what authority Russia declared new countries. He said, “Who in the Lord’s name does Putin think gives him the right to declare new so-called countries on territory that belonged to his neighbours? This is a flagrant violation of international law, and it demands a firm response from the international community.”

The US has placed Russian elites and two banks on the Specially Designated Nationals list. The decision has put the banks and elites out of the US banking system. They would not be allowed to trade with Americans. All the US assets of the institutes and elites were frozen with the sanctions.

The two banks that got sanctions imposed against them are VEB Bank and Promsvyazbank, the military bank of Russia. Promsvyazbank deals in defence deals-related transactions. 42 subsidiaries have also been included in the list. These two banks are state-owned and have been accused of playing a strategic role to improve the defence and economy of Russia.

These sanctions would cut off Russia from Western financing. He said, “As Russia contemplates its next move, we have our next move prepared as well. Russia will pay an even steeper price if it continues its aggression, including additional sanctions.”

Though the US would continue to provide defensive assistance to Ukraine, Biden said there were no intentions to fight Russia. However, additional US forces have already been stationed in Europe to ensure support for Baltic allies, including Estonia, Latvia and Lithuania.

Apart from the state-owned banks, sanctions have been imposed on Russian elites that are allegedly close to President Putin. Some of the elites included in the list are Aleksandr Bortnikov, director of the Federal Security Service (and his son, Denis), Sergei Kiriyenko, a former prime minister of Russia (and his son, Vladimir), and Petr Fradkov, chief executive of Promsvyazbank Public Joint Stock Company.

As per US’s statement, over 80 per cent of Russia’s daily foreign exchange transactions globally are in US dollars. Around half of the international trade by Russia is conducted in dollars. With the sanctions imposed on Russia, none of its financial institutions would be spared, including the largest banks.

In an earlier order, Biden had prohibited any US investment by a business or individual in the DPR and LPR regions. He had also forbidden any import into the USA from these regions and export of USA goods, services or technology into the said regions.

Gas price worries the US

There are concerns that the current situation would have a direct impact on the gas prices in the US. Biden said his administration is monitoring the supply chain and working on ensuring undisruptive global energy supplies to keep the price and inflation in control. He said, “This will blunt gas prices. I want to limit the pain the American people are feeling at the gas pump. This is critical to me.”

Russia’s reaction awaited

Dmitry Peskov, spokesperson, Kremlin, said President Putin had not watched Biden’s speech and would first look at what the US had outlined before responding.

Russia declared two new nations out of Ukraine

On February 21, Russian President Vladimir Putin recognized two independent nations from Ukraine’s Donbas region. He also ordered the Russian Army to launch “peacekeeping operations into the area”. Putin signed a decree recognizing the two nations, Donetsk People’s Republic and the Lugansk People’s Republic, in the presence of Russian-backed separatist leaders Denis Pushilin (DPR) and Leonid Pasechnik (LPR). They agreed on cooperation and friendship.

Join OpIndia's official WhatsApp channel

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staff
OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Recently Popular

- Advertisement -