US has expanded sanctions against Russia, targeting Putin's adult daughters

On December 2, 2007, Russian President Vladimir Putin (C), his wife Ludmila (R), and daughter Maria (2ndL) enter a polling station in Moscow to vote in Russia's parliamentary elections. Image Credit

In the latest wave of sanctions announced on Wednesday, the US sanctioned Russian President Vladimir Putin's two adult daughters, Maria and Katerina, as well as several banks.

President Joe Biden used the bully pulpit on Wednesday afternoon to announce the additional sanctions and decry the horrors witnessed in Bucha, a suburb of Ukraine's capital city Kyiv, before giving unrelated remarks to the North American Building Trades Unions Legislative Conference.

"As Russian troops leave, bodies are left in the streets. With their wrists tied behind their backs, some were shot in the back of the head. Civilians were shot and killed in cold blood. Bodies were thrown into mass graves. A sense of violence and compassion shamelessly exposed for all to see, "Biden said.

"Nothing less than serious war crimes are taking place. To hold these criminals accountable, responsible nations must band together. And, working with our allies and partners, we'll continue to raise economic costs, ratcheting up the pressure on Putin and increasing Russia's economic isolation "He went on to say more.

President Joe Biden addresses trades leaders on April 6, 2022, at the North Americas Building Trades Unions (NABTU) Legislative Conference at the Washington Hilton Hotel in Washington, D.C. Image Credit

The new sanctions include a ban on all new investments in Russia, as well as increased sanctions on two major Russian financial institutions, Sberbank and Alfa-Bank, as well as major Russian state-owned enterprises, and sanctions on Russian government officials and their families, including Putin's daughters.

The new announcements introduce the White House's initial efforts to limit the economic impact of sanctions by targeting specific Russian banks and top Russian officials. The White House initially decided against restricting Russia's energy exports, fearing the impact on global prices, but the Biden administration did move last month to prohibit U.S. purchases of Russian energy. Since Russia's invasion of Ukraine, global energy prices have skyrocketed, contributing to inflation and putting additional strain on American consumers.

Pres. Biden addresses “horrifying” images of violence in Bucha and other Ukrainian towns.

“The sense of brutality and inhumanity, left for all the world to see unapologetically. There’s nothing less happening than major war crimes.” https://t.co/lXjFnf0rPh pic.twitter.com/E6WN3dVxIF

— ABC News Politics (@ABCPolitics) April 6, 2022

On an earlier call with reporters, a senior administration official stated that the US has reason to believe that Putin and his cronies hide their wealth with family members, adding, "We believe that many of Putin's assets are hidden, with family members, and that's why we're targeting them."

"These people have amassed wealth at the expense of the Russian people. Some of them are in charge of providing the necessary support to Putin's war on Ukraine. This action disconnects them from the US financial system and freezes any assets they have in the US "The sanctions were announced in a fact sheet issued by the White House.

Since Putin's invasion of Ukraine in late February, the US has sanctioned more than 140 oligarchs and their family members, as well as more than 400 Russian government officials, and has now fully blocked more than two-thirds of Russia's banking sector, which held approximately $1.4 trillion in assets prior to the war.

In collaboration with the G-7 and the European Union, the United States also announced Wednesday that it was restricting Russia's ability to use previously frozen central bank funds to make debt payments, forcing it to seek alternative sources of funds in order to avoid default.

In his remarks on Wednesday, Biden also praised corporate America for "stepping up for a change" and leaving the Russian market on their own terms.

"Russia will almost certainly lose its status as a major economy, and it will continue its long decline into economic, financial, and technological isolation," a senior administration official told reporters.

According to the White House, the new sanctions will cause Russia's GDP to contract by up to 15% this year, wiping out the previous 15 years of economic gains. Inflation, which is already above 15%, is expected to rise further, and supply chains will be further disrupted as over 600 private sector companies have already exited the Russian market.

"At this rate, it will revert to 1980s Soviet-style living standards," the official added.

When asked if the US was concerned about any negative consequences of detaching Russia from the global market to the point where it would be more concerned with disrupting it rather than re-entering it, the official appeared to dismiss the concern, saying that the US was using a "negative feedback loop" to deter Putin, but that this could be stopped if Putin also stopped.

"None of this is long-term. The only aspect of the lives he's taken away that is permanent, and he can never bring them back. However, the sanctions are intended to be able to respond to on-the-ground conditions and create leverage.

On March 23, 2022, Russian President Vladimir Putin attends a meeting at the Novo-Ogaryovo state residence outside of Moscow, Russia.Image Credit

The announcement comes after Biden announced on Monday that he was seeking additional sanctions in response to apparent war crimes in Bucha; however, as national security adviser Jake Sullivan warned earlier this week, the White House recognizes that additional sanctions against Russia will not change Putin's behavior overnight.

"Sanctions are intended to impose costs so that Russia can't continue to carry out these heinous acts without paying a high price," Sullivan said during the briefing on Monday.

"We don't expect sanctions to result in a change in behavior overnight or within a week. It will take time to grind down the elements of Russian power within the Russian economy, to hit their industrial base hard, and to hit the revenue sources that have propped up this war and the kleptocracy in Russia "He continued.

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