Ukraine crisis: what happens next for the rest of the world?

Administration officials have studied how the sanctions would affect each of the major banks, including Sberbank and VTB, Russia’s two largest banks. Sberbank owns about a third of the country’s banking sector assets, and VTB owns more than 15%. Some experts doubt that the administration will put these two banks on the SDN list for fear of the consequences for the Russian and global economy. For now, US officials are not ready to cut all Russian banks from Swift, the major Belgian money transfer system used by more than 11,000 financial institutions around the world.

The Treasury Department has other sanctions lists that would impose costs while inflicting less widespread suffering. For example, he could put a bank on a list that prevents him from carrying out transactions involving dollars. Many international business transactions are conducted in US dollars, the currency that underpins the global economy.

The Treasury Department should also place more Russian officials, businessmen and companies on sanctions lists.

By Thursday afternoon in Russia, the country’s stock market had fallen nearly 40%.

The Commerce Department has drawn up plans to restrict the export of certain U.S. technology to Russia, a tactic the Trump administration has used to hamper Huawei, the Chinese telecommunications company. The controls would harm the supply chain of certain Russian sectors. US officials said their targets included the defense industry and the oil and gas industry.

European officials are expected to announce sanctions similar to those planned by the United States, as they did this week. However, they have been more reluctant to impose the harshest sanctions due to the continent’s robust trade with Russia.

Although Biden has said he would consider possible sanctions, U.S. officials do not currently foresee major disruptions to Russia’s energy exports, which are the mainstay of the country’s economy. Europe depends on commodities, and soaring oil prices around the world would mean more inflation and more problems for politicians. However, Germany announced this week that it would not certify Nord Stream 2, a new gas pipeline that links Russia and Western Europe. On Wednesday, Mr. Biden announced sanctions against a subsidiary of Gazprom, the major Russian energy company, which built the pipeline and planned to operate it.

“We have been frank, we have been frank with the American people that our measures – the measures that we have and are prepared to impose on the Russian Federation – will certainly not be free for the Russian Federation” , State Department spokesman Ned Price said Wednesday. “But they won’t be entirely free for the rest of the world either.”

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