The US and European allies are sanctioning 300 members of the Russian Duma, 40 Russian defense companies and other elites as they move to prevent Russia from using its gold reserves to support a falling ruble.
- The announced new sanctions will affect 300 deputies of the Russian Duma.
- 40 Russian defense enterprises will also be subject to sanctions
- The new initiative will also target countries or institutions that evade existing sanctions.
- Sanctions collapsed the ruble and undermined the Russian economy
The US and European allies are set to announce Thursday a new round of sanctions designed to dramatically widen the circle of pain among Russian officials as the country’s invasion of Ukraine enters its first month.
The US sanctions will affect 300 members of Russia’s State Duma, its lower house, amid Ukrainian President Volodymyr Zelensky’s call for allies to impose sanctions on Russian officials and others who facilitate Russia’s invasion of Ukraine. Other sanctions will hit dozens of other Russian elites.
The sanctions will also target 40 Russian defense companies, a senior administration official told reporters on Thursday.
These moves will “harmonize and strengthen our sanctions in close coordination in partnership” with European allies and the G7 group of industrialized countries,” the administration said.
The new initiative will also target countries or institutions evading existing sanctions as Russia looks for creative ways to avoid the pressure of sanctions that have crippled the Russian economy and hit the ruble.
New sanctions of the USA and Europe concern 300 deputies of the State Duma of Russia
“The G7 and the EU will also continue to restrict the ability of the Central Bank of Russia to place international reserves, clarifying that any gold transactions associated with the Central Bank of Russia are prohibited,” a senior administration official said.
As of June last year, gold accounted for 20% of the reserves of the Central Bank of Russia.
“And our goal now is to completely disarm his military treasury by making sure that his foreign exchange reserves do not support the Russian currency,” the official said.
US President Joe Biden (left), French President Emmanuel Macron (center) and British Prime Minister Boris Johnson at a meeting of NATO leaders in Brussels.
Gold makes up 20% of the reserves of the Central Bank of Russia.
Sanctions collapsed the ruble and undermined the Russian economy
Russian President Vladimir Putin has been buying up gold in recent years following multiple sanctions over US election interference and Russia’s 2014 invasion of Ukraine.
The administration estimates that the country has a gold reserve worth between $100 billion and $240 billion.
Regarding its anti-avoidance procedures, the allies say they are “closing the way, for example, for the Russian Central Bank to support the ruble”, as well as building a coalition to deny Russia advanced technologies, and “prevent Russia from appointing clan banks for doing business abroad,” the official said.