As the crisis in Ukraine enters its fifth week and the initial economic damage to Russia appears to be ebbing, senior US officials fanned out this week to encourage international leaders to maintain increasing pressure on Moscow or join the campaign of sanctions and other measures.
Wally Adeyemo, the deputy Treasury Secretary, met with senior officials in London, Brussels, and Paris before concluding the week in Berlin. Daleep Singh, the deputy national security adviser for international economics, pressed Indian officials in New Delhi; and US Secretary of State Antony Blinken discussed the Ukraine war with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan in Morocco.
The push comes as the early effects of Russia’s unusually harsh sanctions on banks, billionaires, and businesses begin to wear off.
The rouble lost half its value in days after key Russian banks were cut off from the international SWIFT financial transactions network and the bulk of the Russian central bank’s $630 billion foreign exchange war chest was frozen, prompting US officials to declare Moscow was in the midst of a financial crisis.
The rouble has essentially recovered to its pre-invasion level a month later, aided in part by Russian capital controls, government instructions for export enterprises to sell foreign currency, and companies gathering funds to meet quarter-end tax payments. The Russian stock market is open for business again, although at a lower price.
VTB, a major penalty target, is still operating in Europe, where it has amassed billions of euros in deposits, primarily from German savers. After Visa and Mastercard suspended operations in Russia, several Russian banks are contemplating China’s UnionPay credit card system.
Post Your Comments