President Joe Biden deployed a “first tranche” of sanctions against Russia on Tuesday, and he’s expected to unveil much more on Thursday, now that a large-scale invasion of Ukraine has begun.
Analysts estimated which industries, and which people, would be targeted by these punitive measures.
“Given the extent of the ongoing Russian military operation, we believe all options for economic sanctions are on the table for the US response in coordination with the EU and other allies,” analysts at Beacon Policy Advisors said in a note on Thursday.
“This means that the next round of sanctions imposed will not just prohibit US financial institutions from processing transactions for additional major Russian banks including VTB Bank and Sberbank, but could very well include kicking Russia out of SWIFT, which would effectively limit Russian banks’ ability to process financial transactions in most currencies, not just US dollars.”
SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a payments-related messaging service that helps banks worldwide execute financial transactions.
The other sanctions to be unveiled later Thursday by the Biden administration — which already has targeted individual Russian elites — could be aimed at Russian President Vladimir Putin himself, according to analysts at Height Capital Markets.
“A maximal sanctions package is likely to include export controls to restrict Russia’s access to technology, measures targeting many or all other Russian financial institutions in addition to the two the White House targeted already, and measures targeting individuals, including President Putin and his inner circles,” Height’s analysts said in a note.
“The White House will receive pressure from Congress if President Biden does not move to cut Russia’s access to SWIFT,” they added.
In the first tranche of sanctions announced on Tuesday, Biden took aim at two Russian banks, the country’s sovereign debt and some individuals.
Biden is expected to deliver a speech around noon Eastern Thursday about severe sanctions against Russia, according to multiple published reports. The remarks would come after the president takes part in a virtual meeting of G7 leaders.
This is an updated version of a report first published on Feb. 22, 2022.