As soon as the U.S. president made this announcement, UK and European Union leaders announced similar actions against Russia, with all three governments promising they are prepared to impose more severe actions if necessary.
Key global developments are summarized below.
President Biden condemned Russia’s “clear violation of Ukrainian law” and announced the following sanctions:
- Blocking sanctions against two of Russia’s largest financial institutions considered crucial to Russia’s fundraising and defense industry.
- Blocking sanctions against Russian elites close to President Putin and their family members.
- Extension of sovereign debt prohibitions. The Office of Foreign Assets Control (OFAC) also issued Russia-related Directive 1A under Executive Order 14024, “Prohibitions Related to Certain Sovereign Debt of the Russian Federation.” This extends existing sovereign debt prohibitions to cover participation in the secondary market for bonds issued after March 1, 2022, by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation.
All assets of the blocked persons, entities, and vessels under U.S. jurisdiction are immediately frozen, and U.S. individuals and entities are prohibited from doing business with these institutions unless authorized by OFAC.