Finally catching up to Europe
US effectively freezes Russian central bank assets held by Americans
The U.S. said it is blocking financial transactions of Russian central bank assets, effectively freezing any of those assets held by Americans.
The freeze is effective immediately, a senior administration official said in a briefing for reporters on Monday. The official said that the U.S.’s actions are in conjunction and cooperation with the European Union, Japan, the UK, Canada, and others. This means that not only will Russia not be able to access funds in U.S. dollars, they will be unable to use dollars in the other countries turn to other banks and other currencies.
By making the move effective immediately, before markets open, the official said, Russia will be unable to move assets to avoid or mitigate the consequences.
“Our strategy,” the official said, “is to make sure that the Russian economy goes backward as long as President Putin decides to go forward with his campaign.”
Except for one thing
According to the Treasury Department’s Office of Foreign Assets Control (OFAC), this is not a complete and total block of the central bank, as OFAC is authorizing certain transactions with Russia’s central bank that are “energy-related,” and that additional authorizations could follow if necessary.
So, Russia will still be able to make lots of cash from exporting oil and natural gas.
"Surprised by the unusually rapid European decision, the White House scrambled over the weekend to catch up in drafting its own related measures, according to one American and one European official."https://t.co/cdZMdaNCX9
— Josh Kraushaar (@JoshKraushaar) February 28, 2022
Maybe blowing out for the whole weekend wasn’t the best idea, eh?
