Biden rallying allies and imposing new financial sanctions on Russia

Biden rallying allies and imposing new financial sanctions on Russia

President Joe Biden rallyed Western allies into a series of new sanctions against Russia on Monday prior to Ukrainian President Volodymyr Zelensky’s speech to the G7.

The latest financial goals are designed to attack Russia’s President Vladimir Putin’s notebook and impede Moscow’s ability to wage war with Ukraine.

Biden and his allies will target Russian defense companies, companies that benefit from Putin’s war machines, and entities that have committed human rights violations and helped steal Ukrainian grain.

They also consider setting a price cap on Russian oil.

The White House said, “Measures to maintain the thief politics to deprive Putin of the resources needed to wage war and explain its unjustified interests.”

Biden and fellow leaders from Canada, France, Germany, Italy, Japan, the United Kingdom and the European Union will focus on Ukraine in the Monday session.

In the fifth month of the war, Zelensky will effectively speak to his leaders.

Meanwhile, Russia has defaulted on its external debt for the first time since the Bolshevik coup more than a century ago.

Moscow missed the deadline to pay $ 100 million (£ 81.4m) in interest on the two Eurobonds. One is denominated in US dollars and the other is a Eurobond originally scheduled to be paid on May 27.

Ukrainian President Volodymyr Zelensky effectively addresses G7 leaders

President Joe Biden rallying Western allies in a series of new sanctions against Russia

President Joe Biden rallying Western allies in a series of new sanctions against Russia

G7 leader poses for family photo

G7 leader poses for family photo

The latest financial goals are designed to attack Russia's President Vladimir Putin's notebook and impede Moscow's ability to wage war with Ukraine.

The latest financial goals are designed to attack Russia’s President Vladimir Putin’s notebook and impede Moscow’s ability to wage war with Ukraine.

What are the new sanctions imposed on Russia?

Military production and supply chain

The United States will target Russia’s defense supply chain by imposing deterrence sanctions on major state-owned defense companies and defense-related entities and individuals.

G7 leaders will coordinate and expand sanctions, further limiting access to Russia’s major industrial inputs, services and technologies, especially those that support its weapons industry base and technology sector.

price

The United States will implement higher tariff rates on more than 570 Russian product groups, worth about $ 2.3 billion for Russia.

Biden and other G7 leaders seek the authority to use the income raised by new tariffs on Russian products to support Ukraine.

Global market and gold

The United States announces a decision to ban the import of new Russian gold into the United States. This will prevent Russia from participating in the formal gold market. G7 leaders also promise to continue to target efforts by those engaged in sanctions avoidance.

The U.S. Department of Commerce will also take first steps against companies engaged in “backfilling” activities, avoiding Western sanctions by Russia adding several companies around the world to its list of entities. I will support you. This will prevent these companies from purchasing US-made products and technologies such as semiconductors.

Washington will implement sanctions blockages against those involved in helping Russia circumvent sanctions and warn financial institutions to help detect potential violations of export controls.

Human rights violations

G7 leaders decide to impose sanctions on those who are deemed responsible for human rights abuses.

The United States imposes deterrence sanctions on private military companies operating in Ukraine, Russian military units involved in human rights violations, and senior officials in Russia in areas besieged or detained by Russian troops. To do. Visa restrictions target approximately 500 employees to violate Ukraine’s sovereignty and curb opposition in Russia.

Budget support

The G7 promises to help Ukraine make up for the short-term budget shortfall, including a $ 7.5 billion commitment from the United States. Leaders also make a long-term security commitment to provide Ukraine with financial, humanitarian, military and diplomatic support as much as necessary.

-Reuters

According to the White House fact sheet, G7 leaders are the latest sign of support for Zelensky, “aggressively targeting Russia’s defense supply chain by imposing sanctions on major state defense companies.” To announce.

G7 leaders will also impose sanctions on those responsible for human rights violations, including war crimes, and target companies involved in Russian tactics that steal Ukrainian grain or otherwise illegally benefit from war.

The United States will also impose high tariffs on Russia’s more than 570 Russian product groups, worth about $ 2.3 billion.

In addition, G7 countries will use income raised from higher tariffs on Russian goods earlier this year to help Ukraine continue its fight against Russia’s aggression.

The United States also adds several companies around the world to the Entity List. This will prevent these companies from purchasing US-made products and technologies, such as semiconductors, to support their businesses.

As Putin intensifies the war in Ukraine, an aggressive round of sanctions comes. His troops attacked Kieu for the first time in a few weeks when allies gathered in Germany for the annual G7 meeting.

The report suggests that Russia has defaulted abroad for the first time in more than a century after missing Sunday’s deadline, indicating that sanctions are working.

The Kremlin accused the report of being a “chaban drama.”

And there may be more financial difficulties for Russia to come.

Biden urges allies to develop a global price cap for Russian oil-a move designed to reduce its value. Oil is Russia’s largest source of income.

“The goal here is to starve Russia, starve Putin, and push down Russian oil prices to help mitigate the effects of the war on Putin’s pumps,” a senior government official said. On Monday, he spoke at a briefing call.

There were no details about what the price cap was and how it would be implemented.

Officials said these would be the next steps.

G7 leaders, in collaboration with the private sector, “take steps to determine how to design and implement such a mechanism, and again, with these two safe objectives in mind, such. Appoint staff to “design and implement the mechanism.”

Russia’s oil, the country’s largest source of income, is still being purchased. China and India are regaining the remaining slack when the United States and its allies begin to ban Russia’s oil.

Oil sales are declining, but prices are rising, helping to generate billions of dollars for Putin’s war.

Russia raises $ 1 billion a day from oil supplies, energy and clear air research centers have found.

Earlier, the United States, United Kingdom, Canada and Japan announced that they would ban the import of gold from Russia, the second largest source of revenue after oil.

“The United States has imposed an unprecedented cost on Putin to deny him the income needed to fund the war with Ukraine,” Biden wrote on Sunday.

“Together, the G7 announces a ban on Russia’s gold imports, which is a major export that earns tens of billions of dollars for Russia.”

Western countries have already imposed a series of sanctions on Russian oil, luxury goods and other items.

However, the effectiveness of these monetary punishments remains questionable.

“The short-term economic impact of sanctions on the Russian economy was considerable, but seems to have disappeared since May,” the Center for Strategic and International Studies reported this month.