The Treasury Department of the United States prohibited this Monday, February 28, all transactions with the Central Bank of Russiaa sanction of immediate effect and unprecedented severity taken in coordination with various allies of Washingtonin response to the invasion of Ukraine.
The measure, announced before the opening of the markets in the United States and which takes effect immediately, prevents the Russian entity from accessing its dollar reserves in the world and prohibits any financial institution or US company from making transactions or operations with the Central Bank of Russia.
“This decision has the effect of immobilizing all assets that the Central Bank of Russia has in the United States or in the hands of American persons,” the entity said in a statement, which will severely limit Moscow’s ability to defend its coin and support your economy.
White House officials said the ban extends to operations with the Russian National Investment Fund as well.
Those operations to defend the ruble, in sharp decline, “will no longer be possible and ‘fortress Russia’ is defenseless,” a senior US official told AFP.
The source also warned that these coordinated sanctions will trigger a “vicious circle” for the economy Russia and predicted that “inflation will surely skyrocket, purchasing power will collapse, investments will collapse.”
Western estimates affirm that there are 630,000 million dollars in Russian reserves that only matter if the country’s president, Vladimir Putin, can access them to sell them and strengthen the ruble, but after the measures approved today he will not be able to do so and “Russia will be exposed to disaster.
Source: Larepublica
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