As the Rouble Rises, US Pushes to Maintain Pressure on Putin

This week, senior U.S. officials fanned out to push other leaders to continue pressure on Moscow; they urged them to join the sanctions and other measures campaign as the Ukraine crisis enters its fifth week. The early economic harm to Russia appears to be ebbing.

The initiative comes as the immediate impact of the United States’ surprisingly severe sanctions on Russian banks, billionaires, and corporations wears off. The U.S. is preparing its next economic actions to isolate Russian President Vladimir Putin.

Outlook on the Russian Economy

The rouble has essentially rebounded to its pre-invasion level a month later; it received aid partly from Russian capital controls, government instructions for export enterprises to sell foreign currency, and corporations accumulating cash to meet quarter-end tax payments. The Russian stock market is open for business again, although at a lower price.

The Biden administration seeks to influence politicians who have stayed on the sidelines as the war drags on while also ensuring that European partners are united in their desire to punish Putin.

According to one European official, Deputy Treasury Secretary Adeyemo’s discussions with his European counterparts focused on sanctions; the impact of India and China on Russia’s potential sanctions evasion efforts; and how to assist countries like Germany in meeting their energy needs in the event of a Russian embargo.

Treasury officials met in Brussels to explore how to “align sanctions implementation and enforcement, strengthen collaborative sanctions cooperation, and further consolidate the transatlantic sanctions alliance,” according to Treasury. According to the European official, one important issue was Russia’s insistence that international purchasers pay for their Russian gas purchases in roubles starting Friday or suffer supply interruptions. European capitals rebuffed the proposal, with the German government describing it as “blackmail.”

Catherine Novelli, a former top U.S. trade official, and diplomat stressed the need to continue the momentum of sanctions and other punitive measures after the initial fury had subsided.

In India, White House economic advisor Singh, who spearheaded attempts to coordinate the Western reaction to the conflict, assured authorities that Washington would not establish any red limits when buying oil; however, they cautioned against buying too much at once.

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