Biden announces sanctions on 2 Russian financial institutions

By Servet Gunerigok

WASHINGTON (AA) - US President Joe Biden announced Tuesday the first tranche of sanctions against Russia after Moscow recognized two breakaway regions in eastern Ukraine and sent troops.

"We're implementing full blocking sanctions on two large Russian financial institutions; VEB and their military bank," Biden said in a White House address, adding that the sanctions will target Russian sovereign debt.

"That means we've cut off Russia's government from Western financing. It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either," said the US president.

He said starting Wednesday that Washington will impose sanctions on Russia’s elites and their family members,' and warned Russia will pay a "steeper price" for its aggression.

"They share in the corrupt gains of Russian policies and should share in the pain as well," he said.