In a decisive move, President Joe Biden is set to sign a new executive order this Friday aimed at amplifying sanctions against Russia. This initiative, as outlined by senior administration officials, is primarily directed at financial institutions supporting Russia's military efforts in Ukraine.
The executive order is distinctive for introducing secondary sanctions targeting financial institutions. This marks the first instance in the current conflict where such a strategy is employed, specifically designed to disrupt Russia's access to vital resources needed for its military operations in Ukraine.
One senior official highlighted the precision of this approach, describing it as a "surgical" method to impede institutions that are aiding Russia with goods and financial services. Over the past two years, discussions with various jurisdictions and financial bodies have emphasized the importance of not supporting Russia's economy. This executive order serves as a mechanism to enforce accountability for those who fail to adhere to these guidelines.
According to the administration, the primary aim of this order is to hinder the logistical capabilities of the Russian military. Treasury Secretary Janet Yellen praised the order, asserting it as a powerful tool against Russia's warfare resources. She assured that the U.S. would not shy away from employing these new sanctions to target and penalize institutions that bolster Russia's military supply chain.
A senior official informed CNN that parts of the order would become effective immediately upon the President's signing. While U.S. officials acknowledge that existing sanctions have significantly impacted Russia's economy, they have yet to compel Russia to cease its military campaign in Ukraine.
Concurrently, the Biden administration continues to urge Congress to approve additional funding for Ukraine, emphasizing its critical importance in the ongoing conflict.