New Rounds of Sanctions Imposed on Russia

On March 24, 2022, the Biden administration announced that the United States, in coordination with the European Union (EU) and the Group of Seven (G-7), has expanded its list of sanctioned entities and individuals in Russia to over 600, in response to Russia's continued military attacks on Ukraine. The new sanctions target more than 400 individuals and entities comprising Russian elites, more than 300 members of the Russian parliament (the Duma), and defense companies.

In addition, the EU and the G-7 announced a joint initiative to identify and block moves by Russian entities and individuals to evade sanctions or to tap international reserves. The statement from the White House asserted: "As long as President Putin continues this war, the United States and allies and partners are committed to ensuring the Russian government feels the compounding effects of our current and future economic actions."

New Actions Taken

The new actions taken against Russia on March 24, 2022 include the imposition of full blocking sanctions against:

• 328 members of the Duma.
• The Duma as an entity.
• Herman Gref, head of Russia's largest financial institution, Sberbank, and an advisor to Russian President Vladimir Putin since the 1990s.
• Gennady Timchenko, a member of the Russian elite, as well as his companies and his family members.
• 17 board members of Russian financial institution Sovcombank.
• 48 large state-owned Russian enterprises that produce weapons being used against Ukraine.

Additionally, the statement on new sanctions indicates that the other entities in the supply chain for Russia's war effort are being targeted as well.

Impact of Sanctions So Far

The statement from the White House indicates that the impacts of sanctions on Russia to date have included:

• Collapsing value of the Russian ruble (RUB).
• Russia's central bank has doubled interest rates to 20%.
• The Russian government is forcing companies to swap holdings of hard currencies for rubles.
• The Russian economy is forecast to contract by 15% or more in 2022, erasing 15 years of growth.
• Inflation in Russia is soaring, projected to reach an annual rate of 15%.
• The credit rating of the Russian government has been downgraded to junk bond status.
• More than 400 multinational companies have exited Russia.

Additionally, in a separate statement, the Biden administration announced new aid for Ukraine and other countries in the region affected by the humanitarian crisis precipitated by Russia's war.

New U.S. Assistance

The U.S. also announced more than $1 billion in new humanitarian assistance for those affected by Russia's war in Ukraine and its severe impacts around the world, which include a marked rise in food insecurity. This funding will provide food, shelter, clean water, medical supplies, and other forms of assistance. The U.S. also announced an additional $320 million in democracy and human rights funding to Ukraine and its neighbors.

The major categories of U.S. aid include:

• Providing refuge to displaced Ukrainians.
• Welcoming into the U.S. up to 100,000 Ukrainians and others fleeing Russian aggression.
• Supporting humanitarian assistance in Ukraine.
• Helping the millions of refugees in Poland, Moldova, Romania, Hungary, and Slovakia.
• Bolstering democracy and human rights in Ukraine and neighboring countries.
• Supporting initiatives to hold Russia accountable for war crimes in Ukraine.
• Protecting children and other vulnerable populations.
• Strengthening public health.
• Defending global food security.

Regarding food security, the U.S. will provide over $11 billion across the next five years to address food security threats and malnutrition worldwide. This is in response to the danger that Russia's war will disrupt the supply of critical agricultural commodities.