US to announce new sanction package on Russia on Wednesday

The official said the sweeping package “will impose significant costs on Russia and take it further down the path of economic, financial and technological isolation.”

The new sanctions package will ban all new investments in Russia, increase sanctions on financial institutions and state-owned companies in Russia, and sanction Russian government officials and their relatives.

The new sanctions package will be the latest move by the United States and its allies to pressure the Kremlin and limit its ability to wage war against Ukraine. They follow new revelations of new atrocities committed by Russian forces in northern Ukraine coming to light, prompting the US and its allies to take further action against Moscow.

“These measures will degrade key instruments of Russian state power, impose acute and immediate economic damage on Russia, and hold accountable the Russian kleptocracy that finances and supports Putin’s war,” the official said. “These actions will be taken in conjunction with our allies and partners, demonstrating our resolve and unity to impose unprecedented costs on Russia for its war against Ukraine.”

The official added: “We had already concluded that Russia committed war crimes in Ukraine, and Bucha’s information appears to show more evidence of war crimes. And as the president said, we will work with the world to ensure they surrender.” account completely.” these crimes. One of those tools is sanctions, and we have been working intensively with our European allies on new sanctions.”

The expected sanctions come after the US Treasury announced that it will no longer allow Russia to pay its debt using dollars stored in US banks. While Washington imposed sanctions on Russia’s Central Bank by freezing its foreign currency in US banks, the Treasury Department had previously allowed Russia to use those reserves to service its debt.

Since the Russian invasion of Ukraine began in late February, the US and its allies have sanctioned hundreds of Russian elites and lawmakers, restricted the country’s access to Western technology important to its defense and tech sectors, frozen roughly half of Russia’s foreign reserves and cut specific Russian banks from the SWIFT banking network, among other steps. The United States has also banned the import of Russian oil, natural gas and other energy products.

While the severity and swiftness of Western sanctions against Russia are unprecedented, key exceptions remain as US officials continue to monitor US and European supply chains and try to limit the impact of sanctions on Western economies that are struggling. with record levels of inflation. .

CNN reported late last week that Russia is facing a deep recession and high inflation as sanctions push the country into an increasingly closed economy, a change that US officials believe the Kremlin will struggle to achieve. as it has long relied on the sale of raw materials to buy sophisticated equipment and consumer goods.

This story has been updated with additional information.

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