US Targets Foreign Banks with Sanctions to Curb Russia’s War Effort

 December 23, 2023

US Targets Foreign Banks with Sanctions to Curb Russia’s War Effort

In a decisive stroke designed to undermine Russia’s military capabilities, US President Joe Biden has signed a far-reaching executive order targeting the financial sinews aiding Russia’s war efforts in Ukraine. The order, enacted on December 22, 2023, sanctions foreign banks that allegedly support Russia’s defense sector, underscoring the US commitment to stymie Russia’s access to international financial networks and critical war supplies.

The Financial Front of Warfare

The latest sanctions focus on small, yet pivotal, non-US financial institutions believed to be instrumental in helping Russia evade the dense web of existing sanctions. By facilitating the acquisition of essential goods and military equipment, these banks have found themselves in the crosshairs of the US Treasury, which has already reported a 32% drop in Russia’s oil and petroleum tax revenue due to prior sanctions.

Expanding the Sanctions Web

Further tightening the economic noose, the US administration has expanded its sanctions to encompass Russian-origin products that undergo processing elsewhere, with diamonds and seafood now banned. This measure aims to eliminate loopholes that have allowed Russian commerce to persist, despite international efforts to isolate it economically.

Global Implications and Retaliation

While the US leverages secondary sanctions to pressure nations still engaged with Russia, there are growing concerns about the potential for these actions to encourage a shift away from the US dollar in international transactions. A forceful Russian response to the sanctions has raised the specter of a diplomatic rift, with Moscow warning of potential consequences for US-Russian relations. Concurrently, Western allies amplify military support for Ukraine, with several European countries committing F-16 jets following US approval.

In the midst of escalating sanctions, Ukraine continues to demonstrate resilience against Russian aggression, intercepting a majority of Iranian-made drones aimed at Kyiv. Russia, too, has claimed defense success, reporting the interception of Ukrainian drones near Moscow. In the shadow of conflict, discussions have emerged among Western politicians about redirecting approximately $300 billion in frozen Russian assets to support Ukraine’s post-war reconstruction.

Safak Costu

Şafak Coştu kicked off her career in journalism by contributing to some of Turkey’s most renowned national publications, showcasing her formidable skills and ability. With time, she expanded her professional field, incorporating writing and teaching into her domain of expertise. Working as the Chief Correspondent for BNN Türkiye, Şafak leverages her extensive knowledge and skills to deliver insightful reports on the region’s latest happenings. With her deep understanding and unique point of view on contemporary matters, she has firmly established herself as a respected figure in Turkish journalism.

Source: https://bnnbreaking.com/politics/us-targets-foreign-banks-with-sanctions-to-curb-russias-war-effort/?utm_source=rss&utm_medium=rss&utm_campaign=us-targets-foreign-banks-with-sanctions-to-curb-russias-war-effort

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