The United States has one goal: to sink the Russian economy

Although Biden maintains the position of not sending soldiers to Ukraine and trying to avoid the loss of human lives, the new sanctions go directly to the collapse of the Russian economy

The dissuasive measures are over. The White House has already exhausted the previous steps before launching actions that will be aimed at the collapse and technological and economic isolation of Russia. In fact, Biden has tried everything in recent weeks so as not to have to go to this extreme: from the live narration of the alarms issued by their intelligence agencies to the threats of more lukewarm economic sanctions, directed at Putin’s entourage and some financial institutions. None of this has worked.
The stage is now different. The entry of thousands of soldiers across the border, the tanks on Ukrainian soil and the missile bombardment have caused the United States to lose patience. Although the position of not sending soldiers to Ukraine and trying to minimize human loss is maintained, the new sanctions go directly to the collapse of the Russian economy.

Measures

And it will be done through a package of sanctions “specially designed to allow the energy supply to continue” in the rest of the countries, without affecting the world oil markets, but with restrictions on Russian importsespecially the technological sanctions on their banks and trade bans with certain state-controlled companies, as Biden said in his speech yesterday. However, only at the end and in response to a journalist’s question, Biden referred to the possibility of expelling Russia from SWIFT (Society for Worldwide Interbank Financial Telecommunication), the security network to process payments from one country to another, which identifies the banks included in such operations, and which would lead to the Russian expulsion from international transactions. The president pointed out that not for the moment That measure would be taken, since the sanctions adopted are the “strongest applied” to date and “they are already working.” In fact, Biden has assured that “the ruble has never been so weak like right now”, just like the russian bagwhich today has collapsed 33.28%. And while it is expected that this uncertainty will also affect the rest of the financial markets, “we are going to remain united to reverse the situation,” added the US president.

other powers

Also the British Prime Minister, Boris Johnsonannounced yesterday the freezing of assets of more than one hundred Russian companies and personalities, among which are the VTB bank, the exclusion of certain banks from its financial system and the prohibition that airline Aeroflot operate in the UK. The cause: “launching the might of the Russian military machine against a free and peaceful neighbor, violating his explicit promise and all principles of civilized behavior between states,” in Johnson’s words. Joe Biden expressed himself in similar terms when he accused Russia of having rejected “all good faith efforts to avoid conflict and human suffering”, making it clear that both the United States and the rest of the NATO member countries are aware that “ Putin is the aggressor and must pay for it”, so they will remain “united and strong in the face of this aggression”, in support of Ukraine.

Consequences

However, despite the Unit wielded by the 27 NATO member countries and the conversations held by Biden before making this announcement with the leaders of Italy, France, Germany, Canada, Japan and the United Kingdom, are already making themselves felt side effects. The increase in the price of oil and the turbulence in the European stock markets are just some of them. And although the United States is not a major importer of Russian products, there are some, such as the gaswhich are already raising its cost. Also the shares of some companies americans like boeing they fell yesterday up to 4%, due to the restrictions that may exist in the supply of titanium from Russia, which has been a supplier of this element since 1990.

To future

If all this fails to discourage Putin from withdrawing from Ukraine, Biden made it clear that Washington could go further in enforcing new measures that would limit Russia’s ability to do business in dollars, euros, pounds and yen, leaving open the possibility of tightening the economic fence. To move forward with sanctions, the North Atlantic Treaty Organization will meet today, as the G7 members did yesterday. All together they will continue to move forward to apply “devastating sanctions packages and other economic measures in order to hold Russia accountable,” Biden said closing his speech. Some actions that come after the failure of diplomacy and open an uncertain scenario.

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