US sanctions blunt Russian Central Bank's ability to deploy int'l reserves including gold

Washington, March 24

In its latest action to impose severe costs on Russia, the US Department of Treasury's Office of Foreign Assets Control (OFAC) is designating key enablers of the invasion.

This includes dozens of Russian defence companies, 328 members of the Russian State Duma, and the head of Russia's largest financial institution. This action aligns with similar actions taken by the European Union, the United Kingdom, and Canada, and reflects continued unity to hold Putin accountable for his war of choice.

It has also issued new directions to blunt the Russian Central Bank's ability to deploy international reserves, including gold, to prop up the Russian economy and fund Valdimir Putin's war against Ukraine. This guidance makes clear that any transaction involving gold related to the Central Bank of the Russian Federation is covered by existing sanctions.

OFAC is designating multiple companies that are part of Russia's defense-industrial base and that produce weapons that have been used in Russia's assault against Ukraine's people, infrastructure, and territory.

Today's designations build on those levied by Treasury in previous weeks against key components of the Government of the Russian Federation (GoR) that facilitate Putin's hostile campaign against Ukraine.

By cutting off 48 companies from western technological and financial resources, today's action will have a deep and long-lasting effect on Russia's defense-industrial base and its supply chain, the US Treasury said.

"The United States, with our partners and allies, is striking at the heart of Russia's ability to finance and carry out its warfare and atrocities against Ukraine," said the Secretary of the Treasury, Janet L. Yellen.

"The Russian State Duma continues to support Putin's invasion, stifle the free flow of information, and infringe on the basic rights of the citizens of Russia. We call on those closest to Putin to cease and condemn this cold-blooded war," she added.

The US Treasury has also issued new guidance on transactions with the Central Bank of the Russian Federation involving gold.

U.S. President Joe Biden speaks during the National Thanksgiving Turkey Pardoning Ceremony at the White House in Washington, D.C. Nov. 19, 2021. (Photo by Ting Shen/Xinhua/IANS)