Ruble plummets as sanctions chew, sending Russians to banks

The U.S. Treasury Department on Monday introduced new sanctions focusing on the Russian central financial institution and state funding funds within the newest hard-hitting retaliation for the invasion of Ukraine.

The transfer was described as probably the most “significant action” that Treasury has taken in opposition to an financial system of Russia’s dimension, in response to a senior administration official who briefed reporters on the sanctions on the situation of anonymity.

Biden administration officers mentioned Germany, France, the UK, Italy, Japan, European Union and others will be part of the U.S. in focusing on the Russian central financial institution.

“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,” Treasury Secretary Janet Yellen mentioned in a press release.

Treasury mentioned the transfer successfully immobilizes any belongings of the Russian Central Bank within the United States or held by Americans. The Biden administration estimated that the transfer may affect “hundreds of billions of dollars” of Russia funding.