Biden vows wider sanctions on Russia in effort to cut Moscow off from the global economy
President Joe Biden said Thursday that the U.S. will introduce a new wave of sanctions against Russia in a broad effort to isolate Moscow from the global economy.
The president's said that the totality of the penalties will target trillions in assets and include specific measures against Russian elites and banks including state-owned VTB Bank. The White House has also authorized additional troops to be stationed in Germany as NATO allies look to bolster defenses in Europe, Biden said.
“Today I'm authorizing additional strong sanctions, and new limitations on what can be exported to Russia,” Biden said. “This is going to impose a severe cost on the Russian economy both immediately and over time.”
“I just spoke with the G-7 leaders this morning,” Biden said Thursday afternoon. “And we're in full and total agreement: We will limit Russia's ability to do business in dollars, euros, pounds, and yen to be part of the global economy. We'll limit their ability to do that.”
Prior to Biden remarks, leaders of the Group of Seven nations said they “are appalled by and condemn” Russia's military aggression in Ukraine and promised to impose “severe and coordinated economic and financial sanctions” against the Kremlin.
Moscow embarked on a large-scale offensive of its neighbor early Thursday local time with attacks on several Ukrainian cities, including the capital of Kyiv.
Russian President Vladimir Putin announced that Russia would launch a “special military operation” in Ukraine designed to check its military capacity and added that Moscow's plans do not include the occupation of Ukrainian territory.
The U.S. and its NATO allies say there's little to no evidence of military aggression from Ukraine and that Russian claims to the contrary serve as Moscow's pretext for invasion.
The military conflict in Ukraine and subsequent economic sanctions have kept global markets volatile for weeks and roiled traders again on Thursday. In Europe, the Stoxx 600 closed down more than 3% as bank stocks swooned more than 8%, while the German DAX index dropped 4%.
Minutes before noon in New York, the U.S. S&P 500 traded about 1% lower.
