The Biden administration imposed new sanctions against Russia’s central bank

Prohibiting Americans from doing business with the bank and freezing its assets within the country.

As of immediate effect.

The Russian Federation’s National Wealth Fund will be targeted by the new sanctions against Russia’s central bank

Additionally, with the Russian Federation’s Ministry of Finance.

According to a senior Biden administration source who spoke on the condition of anonymity in order to convey Washington’s thinking.

The fresh penalties will take effect immediately.

“We wanted to take these moves before our markets opened.

Since our allies and partners told us over the weekend, that the Russian Central Bank was attempting to shift assets and that there would be consequences.”

"To put it plainly, our strategy is to ensure that the Russian economy regresses."

“As long as President Putin intends to continue his assault of Ukraine,” the person added.

The United States is also sanctioning Kirill Dmitriev.

He is a close confidant of Russian President Vladimir Putin, along with the direct investment fund he runs.

Officially, the Russian Direct Investment Fund (RDIF) is a sovereign wealth fund.

Although it is largely seen as a slush fund for Putin.

According to the official, the US expects its partners to follow suit in the coming days.

This comes after the US and its partners stated recently, that they would place restrictions on Russia’s central bank’s ability to deploy its currency.

“No country is immune to sanctions against Russia’s central bank,” a second senior administration official said Monday.

“Putin’s war chest of $630 billion in reserves only matters if he can use it to defend his currency.”

In the last few weeks, the US and its allies have slapped a slew of new sanctions against Russia’s central bank, Russia in an effort to keep economic pressure on the Kremlin.

These sanctions against Russia’s central bank, implemented by the US Departments of Treasury and Commerce, have pushed Russian markets into a downward spiral.

The Russian ruble sank to 111 per dollar on Monday, down from 83 on Friday, a decline of more than 20%.

If this trend continues, it will be one of the greatest single-day drops in the value of Moscow’s currency in history.