Biden rallies allies to impose a new round of financial sanctions on Russia
President Joe Biden on Monday called on Western allies for a series of new sanctions against Russia ahead of Ukrainian President Volodymyr Zelensky’s speech to the G7.
The latest round of financial targets is aimed at hitting Russian President Vladimir Putin’s wallet and hindering Moscow’s ability to wage war against Ukraine.
Biden and his allies will target Russian defense companies, companies that have benefited from Putin’s war machine, and entities that have committed human rights abuses and helped steal Ukrainian grain.
They will also try to put a price cap on Russian oil.
The measures are designed to “deprive Putin of the resources he needs to wage his war, and hold the kleptocracy to account for its ill-gotten gains,” the White House said.
Biden and his fellow leaders from Canada, France, Germany, Italy, Japan, the United Kingdom and the European Union will focus on Ukraine during their Monday sessions.
Zelensky will address the leaders virtually as the war enters its fifth month.
Russia, meanwhile, has defaulted on its foreign debt for the first time since the Bolshevik coup more than a century ago.
Moscow missed the deadline to pay $100 million (£81.4 million) in interest on two Eurobonds, one in US dollars and another in euros, which were originally due on May 27.
Ukrainian President Volodymyr Zelensky addresses G7 leaders virtually
President Joe Biden called on Western allies for a series of new sanctions against Russia
The latest round of financial targets aims to hit Russian President Vladimir Putin’s wallet and hamper Moscow’s ability to wage war against Ukraine
NEW PENALTIES IMPOSED ON RUSSIA
Target Russian defense supply chains by imposing blocking sanctions on major state defense companies
Impose sanctions on those responsible for human rights violations – including war crimes
Target companies involved in Russian tactics to steal Ukrainian grain or otherwise unlawfully profit from war
The United States will also impose a higher tariff on more than 570 groups of Russian products
In their latest sign of support for Zelensky, G7 leaders will announce sanctions that will “aggressively target Russia’s defense supply chains by imposing lockdown sanctions on major state defense companies,” according to a White House fact sheet.
The G7 leaders will also impose sanctions on those responsible for human rights violations — including war crimes — and attack companies involved in Russia’s tactics to steal Ukrainian grain or otherwise unlawfully profit from the war.
The United States will also impose a higher tariff on more than 570 groups of Russian products worth about $2.3 billion to Russia.
In addition, the G7 countries will use the revenue collected from higher tariffs on Russian goods earlier this year to help Ukraine continue its fight against Russian aggression.
The US will also add several companies around the world to the Entity List, which will prohibit these companies from purchasing US-made origin goods and technologies, such as semiconductors, to help their businesses.
The aggressive series of sanctions comes as Putin has stepped up his war in Ukraine. His forces attacked Kiev for the first time in weeks as allies gathered in Germany for their annual G7 meeting.
Russia has defaulted for the first time in more than a century after missing a Sunday deadline, reports suggest, an indication that sanctions are working.
The Kremlin called the report “a farce.”
The G7 leaders will focus on Ukraine during their Monday session: from left to right Italian Prime Minister Mario Draghi, European Commission President Ursula von der Leyen, US President Joe Biden, German Chancellor Olaf Scholz, British Prime Minister Boris Johnson, Canadian Prime Minister Justin Trudeau, Japanese Prime Minister Fumio Kishida, French President Emmanuel Macron and European Council President Charles Michel
And there could be even more financial problems for Russia.
Biden will urge allies to develop a global price cap for Russian oil — a move intended to lower its value. Oil is Russia’s largest revenue generator.
“The goal here is to starve Russia, starve Putin from his main source of cash and lower the price of Russian oil to mitigate the impact of Putin’s war at the pump,” a senior government official told reporters during a meeting. briefing on Monday.
No details were available on what the price cap might be and how it would be implemented.
Those will be the next steps, the official said.
G7 leaders will direct their officials to work with the private sector to “take steps to determine how to design such a mechanism, and again, design and implement such a mechanism with those two secure objectives in mind.” ‘ the official noted.
Russian oil, the country’s biggest source of income, is still being bought – China and India are taking up the remaining space as the US and allies began banning Russian oil.
As oil sales fall, prices rise, bringing billions to Putin’s war.
Russia still pulls in $1 billion a day from its oil supply, the Center for Energy and Clear Sky Research found it.
Earlier, the US, UK, Canada and Japan announced they would ban imports of Russian gold, which is the second largest source of income after oil.
“The United States has imposed unprecedented charges on Putin to deny him the revenue he needs to fund his war against Ukraine,” Biden wrote on Twitter on Sunday.
“Together, the G7 will announce that we will ban the import of Russian gold, an important export that brings in tens of billions of dollars for Russia.”
The West has already imposed a series of sanctions on Russian oil, luxury goods and other items.
But questions remain about the effectiveness of those financial penalties.
“The short-term financial impact of the sanctions on the Russian economy has been significant but seems to have faded since May,” the report said. Center for Strategic and International Studies reported this month.