U. S. calls on world to put pressure on Putin
2022.04.01 00:16
U. S. calls on world to put pressure on Putin
By Tiffany Smith
Budrigannews.com – As the war in Ukraine enters its fifth week and the initial economic shock to Russia appears to be diminishing, senior U.S. officials fanned out this week to urge world leaders to either continue putting pressure on Moscow or join the campaign of sanctions and other measures.
Wally Adeyemo, Deputy Treasury Secretary, will conclude the week in Berlin after meeting with senior officials in London, Brussels, and Paris; Daleep Singh, the deputy national security adviser for international economics, pressed Indian officials in New Delhi, and Secretary of State Antony Blinken talked to Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan in Morocco about the conflict in Ukraine.
The effort comes as the United States considers its next economic steps to isolate Russian President Vladimir Putin and as the initial impact of unexpectedly severe sanctions on Russian banks, oligarchs, and businesses begins to wear off.
The ruble lost half of its value within days of cutting off key Russian banks from the international SWIFT financial transactions network and putting the bulk of the $630 billion foreign exchange war chest held by the Russian central bank on hold. This caused officials in the United States to declare that Moscow was facing a financial crisis.
However, a month later, Russian capital controls, government orders requiring export companies to sell foreign currency, and businesses gathering funds to make quarter-end tax payments supported the ruble’s recovery to its pre-invasion levels. Even though their value has decreased, shares are once again trading on the Russian stock market.
The Russian bank VTB, a primary target of sanctions, continues to conduct business in Europe, where it has accumulated billions of euros worth of deposits, the majority of which come from German savers. After Visa (NYSE: ), other Russian banks are considering China’s UnionPay credit card system. V) as well as Mastercard MA) put an end to Russian activities.
Furthermore, energy sales to Europe, which could be worth up to 500 million euros (555 million dollars) per day at current prices, have remained unaffected by the sanctions up to this point. Beginning on Friday, Russia will require gas payments to be made in rubles, which could further strengthen the currency.
According to officials, the Biden administration is attempting to influence leaders who have remained on the sidelines as the war drags on by ensuring that its European allies are in agreement on the need to punish Putin.
Under oath, a senior U.S. official stated, “We’ve got to continue to raise pressure on Russia and increase our support for Ukraine.” The free world and all democratic nations face this challenge. Additionally, we must be prepared for its prolonged duration.
China’s Foreign Minister Wang Yi met with his Russian counterpart Sergei Lavrov on Wednesday to reaffirm Beijing’s plans to maintain bilateral ties and enhance cooperation. The visits come shortly after Biden’s trip to Europe last week and coincide with the growing closeness between Russia and China, the world’s second largest economy.
According to a European official, Deputy Treasury Secretary Adeyemo discussed sanctions, the impact of India and China on Russia’s potential efforts to evade sanctions, and how to assist countries like Germany in meeting their energy needs in the event of a Russian embargo.
An important topic, according to the official, was Russia’s demand that foreign buyers pay for Russian gas imports in rubles starting on Friday or risk supply cuts. The demand has been rejected by European capitals, and the German government said that it was “blackmail.”
Catherine Novelli, a former senior U.S. trade official and diplomat, stated that the United States must maintain its relationships with its allies. She stated that once the initial outrage subsides, it is “very difficult” to maintain the momentum of sanctions and other punitive measures.
Deputy National Security Adviser Singh told officials in India that the United States would not set any limits on how much oil it would buy, but he cautioned against buying too quickly.
India has attempted to strike a balance between its long-standing ties with Russia and the West and its military, which relies on Russian technology and hardware. It has not imposed sanctions on Russia, in contrast to the United States, Japan, and Australia, which are all members of the Quad group.
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