Ukraine Crisis: Joe Biden Says Russia Cut Off From Western Finances

Biden said, "Russia can no longer raise money from the West."

United States President Joe Biden speaks about Ukraine in the East Room of the White House, Tuesday, 22 February in Washington.

(Photo: AP/PTI)

United States President Joe Biden announced the first set of sanctions on Russia on Tuesday, 22 February, including steps to starve the country of financing, in response to Russia's upper house voting to allow President Vladimir Putin to use the Russian Army abroad to support the Ukrainian separatists.

While announcing the sanctions, Biden commented on Russia’s recognition of the independence of two rebel-held areas of the Donetsk and Lugansk in Ukraine, and said, "This is the beginning of a Russian invasion of Ukraine. Who in the Lord’s name does Putin think gives him the right to declare new so-called 'countries' on territory that belonged to his neighbors?"

Sanctions on two large financial Russian institutions, including VEB, Russia's state development bank, and Russia’s military bank, were also announced, while the threat of tougher steps was issued if Russia "continues its aggression."

"We're implementing sanctions on Russia's sovereign debt. That means we've cut off Russia's government from Western financing," news agency AFP quoted Biden as saying.

He added, "It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either."

'Flagrant Violation of International Law': Biden

Biden’s announcement came after the European Union unveiled its own sanctions in a coordinated Western effort to pressure Russian leader Vladimir Putin.

The US President had earlier said that they “will impose sanctions on Russia far beyond previous measures. Sanctions cut Russia off from Western financing. We will impose sanctions on Russia's elites,” news agency ANI reported.

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

Calling Russia’s recognition of Ukraine breakaway regions as a flagrant violation of international law, Biden stated, “We are going to judge Russia by its action, not words... I hope diplomacy is still available.”

“Vladimir Putin is setting up a rationale to take more territory by force, in my view...He's setting up a rationale to go much further,” Biden said.

Russia’s Upper House Allows Putin To Use Army Abroad

Russia's upper house on Tuesday, voted to allow President Vladimir Putin to use the Russian Army abroad to support the Ukrainian separatists. The decision was backed by 153 senators, with no one voting against or abstaining.

Putin had asked the Federation Council to allow the use of the army outside the country to help the separatists.

The separatists have been fighting the Ukrainian army since 2014. Putin had also said that the Ukraine peace agreement did not exist anymore and it was best if Ukraine dropped the NATO bid and adopted neutrality.

Ukraine Considering Breaking Off Diplomatic Relations With Russia: Zelenskyy

Meanwhile, Ukrainian President Volodymyr Zelenskyy on Tuesday, demanded the immediate halt of the Nord Stream 2 pipeline project as part of Western sanctions, AFP reported.

The leader added that Kyiv is considering breaking off diplomatic relations with Russia.

"I have received a request from the foreign ministry to examine the question of breaking off relations between Ukraine and the Russian Federation," Zelenskyy reportedly said.

Meanwhile, following a meeting with US Secretary of State Antony Blinken, Ukraine's foreign minister Dmytro Kuleba said:

"Russian aggression has brought the world to the edge of the largest catastrophe since the World War II."

He reiterated, "There's no such thing as a minor, middle or major invasion. Invasion is an invasion. Plan A is to utilise every tool of diplomacy. Plan B is to fight for every inch of our land and every city and every village. To fight until we win, of course," ANI reported.

Kuleba also urged the United States and its allies to "hit Russia's economy now, and hit it hard".

(With inputs from ANI and AFP.)