The United States and the European Union prepared to exclude Russia from the international financial system and “strike to the very heart” of the Russian banking system in the event of a military offensive against Ukraine, writes Financial Times, citing sources. Some EU countries have also called for a freeze on Russia’s access to special drawing rights (SDRs).
SDR is an artificial reserve and means of payment issued by the International Monetary Fund (IMF) and has only a non-cash form in the form of entries in bank accounts. In the central banks of some countries, gold and foreign exchange reserves are partially stored in this “currency”. As for banks, such large credit institutions as Sberbank, VTB, Gazprombank, the Russian Direct Investment Fund and Alfa-Bank were under threat.
According to FT journalists, one of the most powerful tools to put pressure on Russia is the so-called foreign direct product rule. If the US amends this law, then all global IT companies using US components will have to obtain a US license before supplying technology to Russia.
In addition, the administration of US President Joe Biden has already developed “specific sanctions packages” against Russian oligarchs and their families. Tycoons from Russia may freeze foreign assets and be banned from entering a number of states. Specific surnames are not yet known – they are not called because of the “risk of flight.” Considering how many Russian oligarchs have financial interests in the UK, the US has secured the support of the British authorities for such restrictions.
Western sanctions could also affect high-tech exports such as quantum computing and artificial intelligence. The purpose of these restrictions will be to cause as much damage as possible to Russia’s industry and its ability to develop technologically. Earlier, such plans have already been announced by a member of the US National Security Council (NSC) Peter Harrell. The restrictions could also affect other critical industries such as maritime, defense and civil aviation, as well as consumer electronics, according to Reuters.
Related materials:
#West #preparing #strike #heart #Russian #banking #system