President Biden sanctioned more Russian oligarchs Thursday as part of a NATO pressure campaign against Vladimir Putin’s inner circle, but refused to restrict oil and gas sales that critics say finance Moscow’s war in Ukraine.
The new sanctions, announced as the invasion enters its second week, target members of seven families as Biden faces fresh criticism — including from Democrats — for not cutting off Russia’s most lucrative exports.
“The goal is to maximize the impact on Putin and Russia and minimize the harm and loss to our allies and friends around the world,” Biden said of the new sanctions at a Thursday afternoon Cabinet meeting.
“Our interest is in maintaining the strongest unified economic impact campaign on Putin and all of his people,” the president added.
Biden refused to answer any reporter questions, including about Russian energy exports, leaving White House press secretary Jen Psaki to defend the policy.
“We don’t have a strategic interest in reducing the global supply of energy,” Psaki said at her regular press briefing, despite the fact that Biden last year scrapped major US oil pipeline projects and tried to halt new drilling leases.
The new NATO sanctions are designed to target Vladimir Putin’s inner circle by cutting off their funds, which pay for the invasion. NICOLAS TUCAT/AFP via Getty Images
The megayacht named Dilbar belonging to Uzbek-born Russian business magnate Alisher Usmanov was seized by NATO after newer sanctions were put into effect. Sabri Kesen/Anadolu Agency via Getty ImagesPsaki said banning Russian oil imports might increase costs, indirectly benefiting Putin — a point also made Thursday by Trump White House national security adviser Robert O’Brien, who argued in a Fox News interview for a dramatic increase in US oil production that would drive down prices.
“We are continuing to look at other options we could take right now to cut US consumption of Russian energy,” Psaki said. “If you look at publicly available data, it’s only about 10 percent of our imports. But again, reducing the supply out there would have an impact on prices and on prices at the gas pump.”
But Biden faces increasing pressure to turn off the flow of Russian fossil fuels.
A woman holds a placard against Russian President Vladimir Putin at a pro-Ukraine protest against Russia’s invasion. AP Photo/Ariel Schalit
A map detailing the Russian invasion of Ukraine.
“It is so obviously apparent that we need to cut it off. I wonder if there’s a reason we haven’t [and] what the hell the reason is,” Sen. Jon Tester (D-Mont.) told NBC News.
In response to a question about banning Russian oil imports, House Speaker Nancy Pelosi (D-Calif.) said Thursday: “I’m all for that. Ban it.”
The latest round of sanctions will target members of seven influential families as Russian forces meet unexpectedly stiff resistance in Ukraine. Russian rockets this week hit residential areas of major cities after Ukrainian officials armed civilians and urged them to fight.
Russian billionaire Alisher Usmanov, whose $600 million yacht was seized by German officials this week, is on the new US sanctions list, as are brothers and SGM construction firm co-owners Boris and Arkady Rotenberg and members of their families.
Billionaire Nikolay Tokarev, whose wealth comes from pipeline company Transneft and luxury real estate, also faces sanctions, as do Rostec defense firm CEO Sergei Chemezov and his immediate family.
Igor Shuvalov, chairman of the state development corporation VEB and restaurateur Yevgeniy Prigozhin and their families will also have bank accounts within the grasp of US officials seized.
Putin press secretary Dmitry Peskov also faces new financial sanctions.
“These individuals have enriched themselves at the expense of the Russian people, and some have elevated their family members into high-ranking positions,” a White House press release said.
“Others sit atop Russia’s largest companies and are responsible for providing the resources necessary to support Putin’s invasion of Ukraine. These individuals and their family members will be cut off from the U.S. financial system, their assets in the United States will be frozen and their property will be blocked from use.”
Also on Thursday, 19 oligarchs and 47 relatives or associates were banned from entering the US, though they were not identified by name.
According to sources, President Biden has yet to sanction Russia on oil and gas exports. Saul Loeb/Pool via AP“One of the big factors is, of course, the proximity to President Putin,”Psaki told reporters. “We want him to feel the squeeze. We want the people around him to feel the squeeze.”
Biden announced limited sanctions last week against state-owned Russian banks and certain elite businessmen. After criticism, Biden sanctioned Putin’s vast personal wealth and reached an agreement with US allies to unplug Russia from the SWIFT international banking system.
On Feb. 22, after Putin recognized the independence of two pro-Moscow rebel states in eastern Ukraine, the US sanctioned five Russians: FSB director Aleksandr Bortnikov and his son Denis, the deputy president of VTB Bank; Putin deputy chief of staff Sergei Kiriyenko and his son Vladimir, the CEO of the VK social media network; and Promsvyazbank CEO Petr Fradko
Two days later, after Russian troops began their full-on invasion of Ukraine, the US sanctioned 10 more Russians, including Rosneft CEO Igor Sechin and his son Ivan Sechin; Putin adviser Sergei Ivanov and his son Sergei; Alrosa diamond mining CEO Sergei Ivanov; VTB Bank chairman Yuriy Solviev and his wife, Galina Ulyutina; VTB Bank executive Andrey Puchkov; and former Gazprom executive Andrey Patrushey and his son Nikolai.
Russian President Vladimir Putin was personally sanctioned by NATO over the weekend. Andrei Gorshkov, Sputnik, Kremlin Pool Photo via APOver the weekend, Putin himself was added to the sanctions list.
Russia is estimated to have more than 100 billionaires — some of whom have extensive international investments. Two of them, Mikhail Fridman and Oleg Deripaska, called on Putin to end the invasion of Ukraine earlier this week.
In addition to Usmanov’s yacht, which was seized by authorities in Hamburg, French officials took control of a luxury yacht owned by Sechin.
Meanwhile, the Financial Times reported Wednesday that Credit Suisse had asked hedge funds and other investors to destroy documents concerning loans backed by private jets, yachts, and other assets in an apparent attempt to prevent leaks about the Swiss bank’s Russian clients. The same outlet reported last month that a Credit Suisse investor presentation revealed that a third of defaults in 2017 and 2018 on its yacht and aircraft loans were helped by US sanctions then in place.
The report indicated that the Rotenberg brothers, freshly sanctioned Thursday, were among those who had to terminate their private aircraft leases at that time.
