U.S. sanctions Russian central bank, other financial tools

The U.S. Department of the Treasury on Monday announced a fresh round of sanctions targeting Russia's central bank, the country's financial tools as well as a relevant individual, in response to Russia´s ongoing military attack on Ukraine, according to Xinhua.

The Treasury Department said in a statement that the U.S. government has banned transactions by U.S. persons with the Russian central bank, the National Wealth Fund of the Russian Federation and the Russian Ministry of Finance.

"This action effectively immobilizes any assets of the Central Bank of the Russian Federation held in the United States or by U.S. persons, wherever located," read the statement, according to which certain energy-related transactions will be exempted from the just-announced sanctions. Those business dealings are still being allowed via a forthcoming general license.

In addition, Treasury also sanctioned the Russian Direct Investment Fund -- a key Russian sovereign wealth fund -- its management company, and one of the managing company's subsidiaries. Also on the sanction list is the managing company's chief executive officer, Kirill Dmitriev, who the department said is a "known ally" of President Vladimir Putin of Russia.

The measures will further restrict "these persons and entities from the U.S. financial system," the statement said.

The United States, together with its European and other allies, on Friday announced one of the stiffest economic sanctions against Russia since it launched the military operations in Ukraine, removing certain "selected" Russian banks from the SWIFT messaging system that most financial institutions worldwide rely on to make international transactions.

Elvira Nabiullina, the Russian central bank chief, said Monday that Russia has developed its own financial messaging system, known as SPFS, to replace SWIFT, so that the Russian financial infrastructure will run smoothly in the current environment, according to reports by Russia's TASS and RIA Novosti news agencies.

Nabiullina said the central bank will take all necessary measures to support domestic banks and ensure financial and price stability in Russia. She said international payment cards issued by sanctioned Russian banks will continue to operate as usual inside Russia.