Russia-Ukraine war: US Treasury bans transactions with Central Bank of Russia
Premium- This action effectively immobilizes any assets of the Central Bank of the Russian Federation held in the United States or by US persons, wherever located
The US Department of the Treasury on Monday prohibited its persons from engaging in transactions with the Central Bank of Russia, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation.
“This action effectively immobilizes any assets of the Central Bank of the Russian Federation held in the United States or by US persons, wherever located," the Department of the Treasury said in a statement.
In addition, as directed by President Biden last week, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a key Russian sovereign wealth fund, the Russian Direct Investment Fund (RDIF), with exposure to the United States financial system and its Chief Executive Officer (CEO), Kirill Dmitriev – a known Putin ally.
"Recently designated Russian President Vladimir Putin and his inner circle of cronies have long relied on RDIF and Dmitriev to raise funds abroad, including in the United States. By further restricting these persons and entities from the US financial system, the US continues to demonstrate its unwavering commitment to support Ukraine, impose costs on Putin’s inner circle or those connected to Putin and his war of choice, and to prevent Putin’s regime from raising capital to fund its invasion of Ukraine and other priorities," it said.
“The unprecedented action we are taking today will significantly limit Russia’s ability to use assets to finance its destabilizing activities, and target the funds Putin and his inner circle depend on to enable his invasion of Ukraine," said Secretary of the Treasury Janet L. Yellen.
“Today, in coordination with partners and allies, we are following through on key commitments to restrict Russia’s access to these valuable resources."
Now, United States persons are prohibited from engaging in any transaction involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation.
The Treasury Department also designated three entities critical to managing one of Russia’s key sovereign wealth funds: Russian Direct Investment Fund (RDIF), its management company, and one of the managing company’s subsidiaries.
“By blocking these entities, OFAC is terminating yet another route through which Russia has benefitted from access to the U.S. financial system," the department said.
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