The United States and more than 30 allies and partners around the world have imposed the most effective, coordinated, and broader economic constraints in history. Experts predict that Russia’s GDP will shrink by up to 15 percent this year, eliminating the last fifteen years of economic gains. Inflation is already jumping above 15% and is projected to accelerate higher. More than 600 private sector companies have already left the Russian market. Supply chains in Russia have been severely disrupted. Russia is very likely to lose its status as a major economy and will continue a long descent into economic, financial and technological isolation. Compared to last year, US exports to Russia of items subject to our new export controls have fallen by 99 percent in value – and the force of these restrictions will intensify over time as Russia withdraws any remaining stock of spare parts for some planes, tanks, and other resources needed for Putin’s war machine. As long as Russia continues its violent attack on Ukraine, we will remain united with our allies and partners in imposing additional costs on Russia for its actions. Today, the United States announces the following actions: Complete blockade of sanctions on Russia’s largest financial institution, Sberbank, and Russia’s largest private bank, Alfa Bank. This will freeze any of the assets of Sberbank and Alfa Bank that touch the US financial system and prohibit US individuals from doing business with them. Sberbank owns almost a third of the total assets of the Russian banking sector and is systemically critical to the Russian economy. Alfa Bank is the largest privately owned financial institution in Russia and the fourth largest financial institution in Russia as a whole. Prohibition of new investments in the Russian Federation. President Biden will sign a new Executive Decree (EO) that includes a ban on new investment in Russia by Americans wherever they are, further isolating Russia from the world economy. The move is based on a decision by more than 600 multinationals to leave Russia. The exodus of the private sector includes manufacturers, energy companies, large retailers, financial institutions, and other service providers, such as law firms and consulting firms. The current EC will ensure the continued weakening of the global competitiveness of the Russian Federation. Complete blockade of sanctions on critical large Russian state-owned enterprises. This would prohibit any U.S. individual from doing business with these entities and seize any of its assets under U.S. jurisdiction, thus damaging the Kremlin’s ability to use those entities it depends on to operate and operate finance the war in Ukraine. The Ministry of Finance will announce these entities tomorrow. Complete blockade of sanctions on Russian elites and their families, including sanctions on President Putin’s adult children, Foreign Minister Lavrov’s wife and daughter, and members of Russia’s Security Council, including the former Russian Prime Minister and Prime Minister Medvedev and Prime Minister Mikhail Misustin. These people have become rich at the expense of the Russian people. Some of them are responsible for providing the necessary support to support Putin’s war in Ukraine. This cuts them off from the US financial system and freezes any assets they hold in the United States. The US Treasury Department has banned Russia from making debt payments with funds subject to US jurisdiction. The sanctions do not preclude payments on Russian sovereign debt at this time, provided Russia uses funds outside US jurisdiction. However, Russia is a global economic idiot – and now has to choose between running out of available funds to pay off debt or bankruptcy. Commitment to supporting areas essential for humanitarian activities. As we continue to escalate our sanctions and other economic measures against Russia for its violent war against Ukraine, we reiterate our commitment to exclude key humanitarian and related activities that benefit the Russian people and the people around the world: ensuring availability. basic food and agricultural products, ensuring access to medicines and medical devices and enabling telecommunications services to support the flow of information and internet access that provides external perspectives to the Russian people. These activities are not the goal of our efforts and US and Western companies can continue to operate in these areas in Russia. Where necessary, the relevant departments and agencies will issue appropriate exemptions and gifts to ensure that this activity is not interrupted.
