The Treasury Department on Monday prohibited any persons in the U.S. from engaging in transactions with Russia’s central bank to “effectively immobilize” certain assets as Moscow scrambles to pull levers that would blunt the crippling impact of sanctions on its economy.
President Biden also directed the Treasury to sanction a Russian sovereign wealth fund, the Russian Direct Investment Fund (RDIF), managed by a close ally of President Vladimir Putin.
The moves come on top of previous sanctions that punished Russia for its invasion of Ukraine, upending financial systems in Moscow early Monday.
U.S. officials said they want to make it impossible for Mr. Putin to find ways to tap into international reserves and soften the blow. For years, Mr. Putin developed a “fortress” economy in anticipation of punishment from the West.
“The unprecedented action we are taking today will significantly limit Russia’s ability to use assets to finance its destabilizing activities, and target the funds Putin and his inner circle depend on to enable his invasion of Ukraine,” said Treasury Secretary Janet Yellen. “Today, in coordination with partners and allies, we are following through on key commitments to restrict Russia’s access to these valuable resources.”
However, the Treasury said it would authorize a general license for certain energy-related transactions with Russia’s bank, as some Western markets are dependent on supply from Russia.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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