The official said the sweeping package “will impose significant costs on Russia and send it further down the road of economic, financial, and technological isolation.”
The new sanctions package will ban all new investment in Russia, increase sanctions on financial institutions and state-owned enterprises in Russia, and sanction Russian government officials and their family members.
The new package of sanctions will be the latest move by the US and its allies aimed at pressing the Kremlin and limiting its ability to wage war against Ukraine. They follow new revelations of further atrocities committed by Russian forces in northern Ukraine come to light, spurring the US and its allies to take further action against Moscow.
“These measures will degrade key instruments of Russian state power, impose acute and immediate economic harm on Russia, and hold accountable the Russian kleptocracy that funds and supports Putin’s war,” the official said. “These measures will be taken in lockstep with our allies and partners, demonstrating our resolve and unity in imposing unprecedented costs on Russia for its war against Ukraine.”
The expected sanctions come after the US Treasury announced it will no longer allow Russia to pay down its debt using dollars stockpiled at American banks. While Washington had imposed sanctions on the Russian Central Bank freezing their foreign currency at US banks, the Treasury Department had previously allowed Russia to use those reserves to repay its debt.
Since Russia’s invasion of Ukraine started at the end of February, the US and its allies have sanctioned hundreds of Russian elites and lawmakers, restricted the country’s access to Western technology important to its defense and technology sectors, frozen roughly half of Russia’s foreign reserves and cut off specific Russian banks from the SWIFT banking network, among other steps. The US has also banned the import of Russian oil, natural gas and other energy products.
While the severity and swiftness of the Western sanctions against Russia have been unprecedented, key carve outs remain as US officials continue to monitor US and European supply chains and try to limit the impact of sanctions on Western economies that are grappling with record-high inflation levels .
This story has been updated with additional information.