On Tuesday, U.S. President Joe Biden stated that Russia has begun an "invasion" of Ukraine and announced comprehensive sanctions on a major Russian bank, VEB, and the military bank. The sanctions will prevent U.S. financial institutions from processing transactions related to VEB and the military bank. This will effectively block banks from engaging in transactions involving the U.S. dollar, which is the world's reserve currency.
Biden also announced the United States' intention to impose sanctions on Russia's sovereign debt. He remarked at the White House, "This means we have cut off the Russian government from Western financing; it can no longer raise funds from the West or trade its new debt in our markets or European markets either."
In addition to sanctions on VEB and Russian debt, Biden mentioned that in the coming days, individuals from Putin's inner circle would be sanctioned. He emphasized that the Russian elite and their families "share in the corrupt gains of the Kremlin's policies, so they must also share in the pain."
Biden noted that he would begin to impose sanctions that are significantly broader than previous ones. Until Tuesday, Biden had not used the term "invasion" to describe the Russian military presence in the separatist regions of eastern Ukraine. Biden had consistently promised to impose severe economic sanctions on Russia if Moscow invaded Ukraine.
