The US Department of the Treasury on Monday restricted its national individuals from immersing in transactions with the Central Bank of Russia, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation.
“This activity effectively immobilizes any aids of the Central Bank of the Russian Federation held in the United States or by US individuals, wherever living,” the Department of the Treasury announced in a statement.
In addition, as ordered by President Biden last week, Treasury’s Office of Foreign Assets Control (OFAC) permitted a key Russian sovereign wealth reserve, the Russian Direct Investment Fund (RDIF), with disclosure to the United States financial policy and its Chief Executive Officer (CEO), Kirill Dmitriev – a popular Putin ally.
“Recently appointed Russian President Vladimir Putin and his internal circle of cronies have long depended on RDIF and Dmitriev to boost funds abroad, comprising that of the United States. By further constraining these persons and beings from the US financial system, the US proceeds to illustrate its unwavering agreement to finance Ukraine, impose expenses on Putin’s inner circle or those connected to Putin and his battle of selection, and to dissuade Putin’s regime from lifting capital to fund its invasion of Ukraine and other preferences,” it announced.
“The unprecedented effort we are taking today will reasonably limit Russia’s ability to use aids to finance its destabilizing activities, and attack the accounts Putin and his inner circle depend on to support his attack on Ukraine,” announced Secretary of the Treasury Janet L. Yellen.
“Today, in coordination with partners and allies, we are proceeding through on key obligations to prohibit Russia’s access to these precious resources.”
Now, United States individuals are restricted from committing any deal comprising the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation.
The Treasury Department also appointed three entities critical to governing one of Russia’s key sovereign wealth funds: the Russian Direct Investment Fund (RDIF), its management firm, and one of the managing firm’s subsidiaries. “By blocking these items, OFAC is eliminating yet another route through which Russia has profited from permit to the U.S. financial system,” the department announced.