A senior administration official said that the sanctions imposed on Russia, announced on Thursday, and covering Russian bonds, could have a profound impact on the country’s economy, from inflation to soaring government borrowing costs and capital flight.
The United States imposes new sanctions on Russia
The White House said on Thursday that US President Joe Biden has signed an executive order imposing additional sanctions on Russia. They include …
“The sanctions that prevent American banks from buying Russian bonds from the local central bank, the government capital fund and the Ministry of Finance, It could also cause the ruble to depreciate and freeze the Russian economy– Reuters reports, citing a representative of the administration.
“The extent of the retaliation will depend on the Kremlin’s reaction to the sanctions and whether it escalates tensions,” a spokesman told Reuters. He also stressed that the sanctions package on Russian bonds was designed in a way that does not have negative effects on the financial markets. As reported by Agence France-Presse, referring to the representative of the US administration that Some of the sanctions imposed on Moscow are and will remain secret.
On the other hand, the Axios news portal wrote that the extent of the White House’s retaliation was calculated Russia has to pay a “heavy economic price” for its actionsEspecially since the restrictions imposed previously “did not stop the increasing aggressiveness and authoritarianism (of President Vladimir) Putin.”
Axios confirmed that the sanctions, which will take effect on June 14th, It makes it very difficult for the Russian government to raise money in the financial markets.
Russia’s reaction to US sanctions
After announcing the US retaliation, the Russian Finance Ministry announced that the Russian Central Bank had confirmed its readiness to use any tools to ensure the country’s financial stability.
The Russian Foreign Ministry has threatened to do so Moscow’s response to US sanctions will be “irreversible.”Kremlin spokesman Dmitry Peskov announced that Russia would respond to them “on the basis of reciprocity.”
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