Topline
The United States and its allies are planning to ban all new investment in Russia on Wednesday, several news outlets reported, part of a broader package of sanctions set to be issued just days after the Russian military faced new accusations of killing civilians in Ukraine.
President Joe Biden speaks to the press after an event on Monday on the south lawn of the White … [+]
Key Facts
The United States, European Union and Group of Seven will also add sanctions on Russian banks, state-owned enterprises and public officials, CNN and Bloomberg reported Tuesday, citing an unnamed U.S. official.
The new sanctions will include foreign asset freezes for more Russian banks, the Wall Street Journal reports, further cutting off Russia from the global economy by targeting financial institutions that were left with some access to the outside world in previous rounds of sanctions.
President Joe Biden confirmed to reporters Monday he’s “seeking more sanctions” against Russia, after evidence emerged that retreating Russian forces had executed Ukrainian civilians in the Kyiv suburb of Bucha.
Forbes has reached out to the White House and the Department of the Treasury—which is responsible for enforcing most sanctions—for comment.
Key Background
The Biden Administration has imposed several rounds of sanctions on Russia in the last six weeks, aiming to imperil the Russian economy after it invaded Ukraine. The country’s central bank and some of its largest financial institutions have faced asset freezes, several banks were removed from the SWIFT financial communication system, and Russia’s largest bank—Sberbank—was banned from opening accounts with U.S. financial institutions. On Monday, the Treasury prohibited the Russian government from using dollars held in reserve at U.S. banks to make debt payments, which could bring Russia closer to its first default in more than a century. Many experts think Russia’s economy will collapse due to a combination of sanctions and voluntary moves by Western companies to leave the Russian market, though the value of the ruble has largely recovered after plunging in the invasion’s first two weeks, partly due to aggressive action by the country’s central bank.
Tangent
The European Union proposed banning Russian coal imports Tuesday, and the bloc is reportedly weighing sanctions against Russian President Vladimir Putin’s daughters. However, the EU has not pushed to restrict Russian oil and gas imports, which are widely seen as an economic lifeline for Russia.
Further Reading
US to announce new sanction package on Russia on Wednesday (CNN)
U.S., allies to announce Russia sanctions on Wednesday (Reuters)
U.S. Adds Pressure On Russia By Blocking Bond Payments, Increasing Risk Of Default (Forbes)
Source: https://www.forbes.com/sites/joewalsh/2022/04/05/biden-will-reportedly-ban-new-russian-investments-in-latest-round-of-sanctions/