The United States, European Union and United Kingdom have agreed to put in place crippling sanctions on the Russian financial sector in retaliation for its invasion of Ukraine.
Shortly after the United States and European nations agreed Saturday to impose the most potentially crippling financial penalties yet on Russia over its unrelenting invasion of Ukraine, the Ukrainian president’s office said Russian forces blew up a gas pipeline in Kharkiv, the country’s second-largest city.
The European Union, United States, United Kingdom and other allies have steadily stepped up the intensity of their sanctions since Russia launched the invasion late last week. The U.S. and European allies announced the moves in a joint statement as part of a new round of financial sanctions meant to "hold Russia to account and collectively ensure that this war is a strategic failure for Putin."
Analysts predicted intensifying runs on banks by Russians, and falling government reserves as Russians scrambled to sell their targeted currency for safer assets.A missile struck a residential building in southwestern Kyiv on Saturday morning, February 26. The U.S. has succeeded before in persuading the Belgium-based SWIFT system to kick out a country — Iran, over its nuclear program. But kicking Russia out of SWIFT could also hurt other economies, including those of the U.S. and key ally Germany.
"Cutting banks off will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and imports," she added.