White House, European allies prepare to target Russia’s central bank in what would be a dramatic escalation of financial crackdown
In a joint statement released Saturday, the countries announced they had come to the agreement on the additional economic measures to “ensure that this war is a strategic failure for Putin.”
Similarly, the move to target Russia’s central bank comes with little precedent, as they could attempt to freeze the foreign reserves of a country with nuclear weapons. Some experts believe such a step could carry risks if Moscow felt like its money was being held ransom.In the joint statement, the U.S.
if Washington and other governments impose full and immediate sanctions on Russia’s central bank it would be not only the single-most impactful financial sanction, but the only sanction, in his view, that could get Moscow to stand down.The White House has already sanctioned Russia’s largest banks, but Moscow could attempt to use its sizable foreign reserves to prop up those banks for a while. Removing that option, he said, would cripple Moscow’s ability to bail out its banks.
“This situation is dangerous and needs de-escalation to achieve a diplomatic solution. If there’s one thing that recent events have shown, it’s that threats to meet or deter military force with economic punishment are not working," he said."And if carried out, these threats have additional costs for all parties.”The joint statement by the U.S. and its allies included three other commitment.
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