The planned US sanctions against Russia will affect state-owned banks, high-tech exports and sovereign debt transactions. This was reported by The Wall Street Journal (WSJ), citing sources in the US administration. TASS.
VTB was named among the banks for which restrictions are planned. However, the publication noted that the list may change as the sanctions are finalized.
According to the newspaper, the Nord Stream 2 gas pipeline will not be subject to restrictions, and the authorities have no plans to disconnect Russia from the SWIFT payment system.
US government concerns
On January 28, Bloomberg reported that the administration of US President Joe Biden held talks with representatives of the country’s largest banks to discuss the impact of potential anti-Russian sanctions with them and avoid serious negative consequences for the global financial system.
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US authorities have told banks they are concerned about the potential side effects of restrictions like those in 2018. Then the next sanctions against Russia, which hit Rusal, led to interruptions in the supply of aluminum, which caused its prices to soar by 30 percent. According to the source of the publication, high-ranking managers of such organizations as Citigroup, Bank of America, JPMorgan Chase, Goldman Sachs Group participated in the discussion.
The representative of the Ministry of Finance, in turn, said that Washington is considering various options for sanctions that could deal a serious blow to the Russian economy.
Assessing potential side effects and looking for ways to limit them is a smart decision from a public policy standpoint. This is standard practice
Europe asks the US for exceptions
In Europe, at the same time, they are asking the United States to make an exception for the energy sector when imposing sanctions against Russia. Berlin made corresponding appeals. According to Bloomberg, Germany is concerned that if sanctions are imposed on the energy sector, gas supplies to Europe will be at risk. Other Western European countries hold similar views.
According to one official close to the German government, the energy exemption could be part of the final package of sanctions agreed with the US that would be imposed in the event of an escalation in Ukraine.
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Later it became known that the European Union began searching for new gas suppliers to replace Russia in case Moscow introduced counter-sanctions. As the Financial Times reported, Brussels fears that Moscow, which supplies 40 percent of Europe’s fuel, may cut gas throughput in response to sanctions Western countries threaten if Russia invades Ukraine.
It is noted that the US and the EU are negotiating with suppliers in Asia and the Middle East. In particular, US officials have already talked with Qatar and other major gas exporters about additional supplies of liquefied natural gas (LNG). In turn, Brussels is discussing the possibility of LNG swap deals with some Asian countries. In particular, according to the Financial Times, in early February, European Commissioner for Energy Kadri Simson will travel to Azerbaijan to negotiate additional gas supplies to the EU.
What is it about Britain?
The Times newspaper, citing diplomatic sources, said that the United States would not be able to impose the promised anti-Russian sanctions due to Britain’s tolerance for financial flows that pass through London. The interlocutor of the agency referred to the report of the Intelligence Committee of the British Parliament, which refers to Russian oligarchs who have been using the British financial and visa system since 1994 to launder illegal funds with which they can allegedly promote the interests of Moscow.
US officials question the ability to impose sanctions against the President of Russia [Владимира] Putin because of the British, who for years allowed dubious money flows through London
According to the newspaper’s source, representatives of the US State Department are disappointed with the UK’s inability to take action against such a financial flow.
Can the US change its mind?
At the moment, the White House has changed its mind about imposing sanctions against Russian leader Vladimir Putin, as this would create “technical difficulties,” CBS reported on January 27, citing sources.
The US could impose sanctions on (Russian President Vladimir) Putin, but for now the White House has decided not to. According to sources, if the US does this, it will create some technical difficulties.
The channel’s correspondent also said that if sanctions are imposed against persons with whom Washington is negotiating, it will be difficult for Russia to coordinate with partners.
On January 25, US President Joe Biden confirmed the possible imposition of sanctions against Putin in the event of a Russian invasion of Ukraine. The American president also stressed that the escalation around Ukraine could change the world, but talking about the likelihood of escalation is “like guessing on tea leaves.”
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