US Treasury bans transactions with Russia's central bank

By Tuba Sahin

ANKARA (AA) - The US Treasury announced on Monday it has prohibited Americans from doing business with the Russian central bank, Russia’s National Wealth Fund, and the Finance Ministry.

The action effectively immobilizes any assets of the Russian central bank held in the US or by US people, the Treasury said in a statement.

The move aims to disrupt Russia’s attempt to prop up its rapidly depreciating currency by restricting global supplies of the ruble and access to reserves that the country may try to exchange to support the ruble.

“The unprecedented action we are taking today will significantly limit Russia’s ability to use assets to finance its destabilizing activities, and target the funds [President Vladimir] Putin and his inner circle depend on to enable his invasion of Ukraine,” said Treasury Secretary Janet Yellen.

“Today, in coordination with partners and allies, we are following through on key commitments to restrict Russia’s access to these valuable resources,” she added.

This action follows through on partners’ and allies’ Feb. 26 commitment to impose restrictive measures to prevent Russia's central bank from deploying its international reserves in a way that would undermine the impact of US sanctions, it explained.