FACT SHEET: United States and Allies and Partners Impose Additional Costs on Russia
MARCH 24, 2022•STATEMENTS AND RELEASES
United States sanctions over 400 Russian elites, Duma members, and defense companies in coordination with the European Union and G7; U.S. has now sanctioned over 600 targets
G7 and EU announce sanctions evasion initiative to prevent circumvention and backfilling of our unprecedented sanctions; continue to blunt Central Bank of the Russian Federation’s ability to deploy international reserves including gold
President Biden is in Europe to continue our historic coordination with allies and partners on all aspects of our response to Russia’s war against Ukraine, including imposing further severe costs on those enabling President Putin’s war of choice. Today, the United States is sanctioning over 400 individuals and entities comprised of Russian elites, the Duma and more than 300 of its members, and defense companies, aligning and strengthening our sanctions in close coordination and partnership with the EU and G7.
Our sanctions on Russia are unprecedented — in no other circumstance have we moved so swiftly and in such a coordinated fashion to impose devastating costs on any other country. The ruble has depreciated substantially, and is expected by markets to weaken further. The Moscow Stock Exchange closed for weeks. The Central Bank of the Russian Federation has doubled interest rates to 20 percent and companies are being forced to turn over foreign exchange for rubles to provide the Russian Government hard currency. The economy is forecast to contract as much as 15 percent or more in 2022. This economic collapse of Russia’s GDP will wipe out the past 15 years of economic gains in Russia, according to the Institute for International Finance. Inflation in Russia is already spiking, with analysts projecting it to rise up to 15 percent on a year-over-year basis, and the Russian Government has been downgraded to “junk” status by major credit rating agencies. More than 400 multinational companies have left Russia in a mass exodus by the private sector.
As long as President Putin continues this war, the United States and allies and partners are committed to ensuring the Russian government feels the compounding effects of our current and future economic actions.
Today’s actions include:
Full blocking sanctions on more than 400 individuals and entities, including the Duma and its members, additional Russian elites, and Russian defense companies that fuel Putin’s war machine. This includes:
- 328 Duma members and sanctioning the Duma as an entity.
- Herman Gref, the head of Russia’s largest financial institution Sberbank and a Putin advisor since the 1990s.
- Russian elite Gennady Timchenko, his companies and his family members.
- 17 board members of Russian financial institution Sovcombank.
- 48 Large Russian defense state-owned enterprises that are part of Russia’s defense-industrial base and produce weapons that have been used in Russia’s assault against Ukraine’s people, infrastructure, and territory, including Russian Helicopters, Tactical Missiles Corporation, High Precision Systems, NPK Tekhmash OAO, Kronshtadt. We are targeting, and will continue to target, the suppliers of Russia’s war effort and, in turn, their supply chain.
Establishment of an initiative focused on sanctions evasions. G7 leaders and the European Union today announced an initiative to share information about and coordinate responses related to evasive measures intended to undercut the effectiveness and impact of our joint sanctions actions. Together, we will not allow sanctions evasion or backfilling. As part of this effort, we will also engage other governments on adopting sanctions similar to those already imposed by the G7 and other partners.
Continuing to blunt the Central Bank’s ability to deploy international reserves, including gold, to prop up the Russian economy and fund Putin’s brutal war. G7 leaders and the European Union will continue to work jointly to blunt Russia’s ability to deploy its international reserves to prop up Russia’s economy and fund Putin’s war, including by making clear that any transaction involving gold related to the Central Bank of the Russian Federation is covered by existing sanctions.