US imposes sanctions on Russian Central Bank, all transactions to be prohibited

In an attempt to exert more pressure on Vladimir Putin and the Russian government, the US Treasury Department, on Feb.28, banned transactions with the Central Bank of Russia and the Russian foreign investment fund. 

The sanction will immediately immobilize any assets of the Central Bank of the Russian Federation held in the United States or by its citizens. 

This latest move also bans any foreign financial firm from sending American dollars to the Russian Central Bank, wealth fund, and finance ministry. 

“The unprecedented action we are taking today will significantly limit Russia’s ability to use assets to finance its destabilizing activities, and target the funds Putin and his inner circle depend on to enable his invasion of Ukraine,” said Secretary of the Treasury Janet L Yellen, in a statement. 

However, the Treasury Department noted that it would make exceptions for certain energy-related payments to combat the rising oil and natural gas prices.