As part of the escalating tension between the US and Russia, over Ukraine, the US Treasury Department imposed sanctions that prohibit U.S. persons from providing new financing to three major Russian financial institutions, limiting their access to U.S. capital markets. Treasury today has also designated one Russian state-owned defense technology firm pursuant to Executive Order (E.O.) 13661. These measures coincide with actions taken to suspend U.S. export credit and development finance to Russia.
Specifically, Treasury today imposed measures prohibiting U.S. persons and persons within the United States from transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity for Bank of Moscow, Russian Agricultural Bank, and VTB Bank OAO, their property, or their interests in property. As a practical matter, this step will severely limit these banks’ access to medium- and long-term U.S. dollar financing.
The Treasury today has also designated and blocked the assets of United Shipbuilding Corporation, pursuant to E.O. 13661, for operating in the arms or related materiel sector in Russia.
United Shipbuilding Corporation, which was established pursuant to a March 21, 2007 Russian presidential order, is a Russian state-owned company that manufactures, among other things, ordnance and accessories, and is engaged in shipbuilding, repair, and maintenance. United Shipbuilding Corporation designs and constructs ships for the Russian Navy and is the largest shipbuilding company in Russia. This addition expands upon the list of eight defense technology firms designated on July 16.
As a result of today’s action under E.O. 13661, any assets of the entity designated that are within U.S. jurisdiction must be frozen. In addition, transactions by U.S. persons or within the United States involving the entity designated today under E.O. 13661 are generally prohibited.
During a White House conference call today that I participated in, a senior Administration official, as evidence of the impact of US sanctions on Russia, pointed out that the Russian ruble has declined by 8% since the start of the year, despite the Russian central bank aggressively intervening to stem the decline. According to the official, Russia has spent more than $30 billion in an attempt to prop up the ruble.
-RW
If one wanted to create conditions necessary for de-dollarizing the world, angering our partners and isolating major allies, I can't think of a more effective strategy than the one being pursued now, particularly on Russia's borders.
ReplyDeleteThe regime change operations, the spying, the false flag events, and now the proxy wars are all working in tandem to overthrow the existing monetary order. With massive amounts of worthless FRNs floating about overseas, abandonment in favor of precious metals and more stable currencies will cause a tsunami of dollars to come crashing back to America.
I don't think Americans are prepared for what awaits us. Never in the history of man has the entire world been on a fiat paper system, with the reserve currency being deliberately debased with such reckless abandon. The fallout is going to be horrendous.
Get most of your assets out of dollars. Hold real wealth and keep it outside the banking system. 99% of the people will never see this coming and will be impoverished as their wealth and savings evaporate practically overnight. It won't be a pretty sight.