The United States and its allies have “much more we can and will do” to punish Moscow if Russia fails to stop its invasion, Adeyemo told Reuters. Ukrainian leaders on Thursday called on the democratic world to stop buying Russian oil and gas and cut off all Russian banks from the international financial system. After an initial attempt to freeze Russian assets, Washington and its allies announced gradual moves this week as they approach the limit of sanctions to punish Russia without also causing financial pain at home. A new investment ban announced Wednesday by President Joe Biden bans Americans from investing in shares and debt and investment funds of Russian companies, cutting off the Russian defense industry and other sectors from the world’s largest source of investment, Adem said. “This means that Russia will be deprived of the capital it needs to build its economy, but also to invest in its war machine,” Adeyemo said. Asked if he would ban companies already in Russia from further financing these activities, he said the finance ministry was consulting with the private sector. Kremlin officials, who have described their actions in Ukraine as a “special military operation”, insisted that Western sanctions would have no effect on their goals and would strengthen Russian support. Adeyemo said the United States and its European allies would target Russian military supply chains to deny access to key components – “things that are important for building their tanks, supplying missiles and ensuring they have fewer resources.” »To fight the war in Ukraine but also to show strength in the future. “I believe the impact will be immediate in the same way that the impact on the economy was immediate,” Adeyemo said. Russia’s economy is shrinking by 10% this year and inflation is approaching 20%, US officials estimate. Later on Thursday, the Treasury Department blacklisted Russian diamond mining company Alrosa, while the State Department did the same for United Shipbuilding Corp., a state-owned ship and submarine company, and its subsidiaries and board members. its board. White House Chief of Staff Brian Dees said Wednesday that the Biden administration will also ban trade with United Aircraft Corp., the maker of Sukhoi fighter jets, and MiGs – planes flown by some US allies, including NATO members. Adeyemo said Russia’s defense sector has been the first to set up companies since 2014 to acquire critical supplies and materials for building the Moscow army. Some of these companies were targeted for sanctions last month. Economic sanctions have forced Russia to spend more than its hard-earned energy revenues defending the ruble, Adeyemo said, using funds available for the war effort. After losing 45 percent of its value against the dollar in the first two weeks of the invasion of Ukraine, the Russian ruble has risen just below pre-war levels, thanks to capital controls by Moscow and distortions by the Russian central bank. US officials say. “This means that Russia has less money and the president is forced to make choices between supporting the economy and investing in the war in Ukraine,” he said. Adeyemo said his meetings last week with European allies in London, Brussels, Paris and Berlin helped us focus on the next steps and helped speed up sanctions announced Wednesday. Adeyemo said he was encouraged by “strong statements” from European countries about reducing their dependence on Russian energy, but said the continent was in a different position from the United States, the world’s top oil producer. “Because of our ability to generate energy at home, we were able to ban Russian oil imports to America relatively quickly,” he said. “It will take them longer, but what they are doing is reducing their dependence over time.” The Morning and Afternoon Newsletters are compiled by Globe editors, giving you a brief overview of the day’s most important headlines. Register today.
