Biden to Announce 'Russia Sanctions Package' in 3:30 Speech... Will Putin Also Be Sanctioned? (Update)

[Asia Economy New York=Special Correspondent Joselgina] On the 24th (local time), U.S. President Joe Biden announced that the Group of Seven (G7) leaders "agreed on a massive sanctions package and additional economic measures" against Russia, which invaded Ukraine, sparking interest in what the sanctions might include.

The exclusion from the international financial messaging system (SWIFT), which has been discussed so far, is the most frequently mentioned. This is a powerful card that effectively expels Russia from the international financial network. There is also analysis that direct sanctions against Russian President Vladimir Putin could be included.

According to the White House and others, President Biden will deliver a public address at the White House starting at 1:30 p.m. local time regarding Russia's invasion of Ukraine. This corresponds to 3:30 a.m. on the 25th Korean time. The speech was originally scheduled for 12:00 p.m. Eastern Time on the 24th but was postponed to 12:30 p.m. and then 1:30 p.m.

At this event, President Biden is expected to reveal the Russia sanctions package agreed upon during the G7 virtual summit. About 30 minutes before the speech, he previewed harsh package sanctions against Russia on his official Twitter account. He stated, "This morning, I met with G7 leaders to discuss Vladimir Putin's unjustified attack on Ukraine," and added, "We agreed on a massive sanctions package and additional economic measures."

Major foreign media outlets report that the additional sanctions to be announced today may include export controls, financial sanctions such as exclusion from financial networks, and direct sanctions against President Putin.

Among financial sanctions, exclusion from SWIFT is the most frequently cited. SWIFT is a system that allows financial institutions worldwide to conduct international financial transactions using 8- or 11-digit codes. More than 11,000 major banks and financial companies worldwide use this system. If access to this system is blocked, Russia's dollar payments would be cut off, effectively expelling it from the international financial transaction network.

CNN explained, "If Russia is excluded from SWIFT, remittances by financial institutions become nearly impossible," adding, "This would severely impact Russian companies with foreign customers and cause substantial damage to the national economy." However, within the European Union (EU), there were reportedly differences of opinion due to conflicting interests between Eastern European countries adjacent to Ukraine and other countries expected to suffer economic side effects.

Measures against Russia's largest bank, Sberbank, and the largest state-owned bank, VEB, are also expected to be included. The assets held by these banks are estimated at $750 billion, accounting for more than half of Russia's assets.

Additionally, the U.S. has repeatedly expressed its intention to impose export controls on Russia, including key technology items, if the invasion of Ukraine occurs. This involves applying the 'Foreign Direct Product Rule,' which dealt a fatal blow to Chinese company Huawei, in a Russian-style manner, focusing on semiconductors and applying it across Russian industries. Earlier, the diplomatic media Foreign Policy reported that the White House recently requested Asian countries to join these sanctions, and Japan, Taiwan, and Singapore have expressed support.

The UK has already imposed additional sanctions targeting Russian banks, companies, and close associates of President Putin. This includes freezing assets of major banks, including the state-owned VTB, Russia's second-largest bank, blocking Russian banks' access to the pound sterling market, and submitting legislation to limit deposits of Russian nationals in UK banks. Furthermore, the UK has banned landings of Aeroflot, a Russian national airline.

UK Prime Minister Boris Johnson said, "Overall, we are imposing new asset freeze sanctions on more than 100 individuals and entities," adding, "This includes all major manufacturers supporting Putin's military supplies."

Meanwhile, President Putin announced late last night that a special military operation would begin in the Donbas region of eastern Ukraine. Immediately afterward, missile strikes were launched on airports near Kyiv, the capital of Ukraine, and major cities, and Russian troops stationed in northern Belarus crossed the border and advanced into Ukraine.

At a meeting with Russian business officials on the same day, President Putin expressed caution ahead of additional Western economic sanctions but insisted that Russia's military operation in Ukraine was an unavoidable measure.