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US plans to cut ties with select Russian banks if Ukraine is invaded

Biden's administration has prepared an initial package of sanctions against Russia that includes barring US financial institutions from processing transactions for major Russian banks, said reports.

US President Joe Biden (left) and Russian President Vladimir Putin
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US President Joe Biden (left) and Russian President Vladimir Putin

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President Joe Biden's administration has prepared an initial package of sanctions against Russia that includes barring U.S. financial institutions from processing transactions for major Russian banks, three people familiar with the matter said.

The measures, which would only be implemented if Russia invades Ukraine, aim to hurt the Russian economy by cutting the "correspondent" banking relationships between targeted Russian banks and U.S. banks that enable international payments. While U.S. authorities have said banking restrictions would be part of a package of possible sanctions, the administration's plan to cut correspondent banking ties - which underpin global money flows - has not

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 21 2022 | 11:48 AM IST

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