Putin 'Rejected Diplomacy and Chose War,' White House Says

President Joe Biden imposed stiff sanctions on Russia over its invasion of Ukraine as Western nations warned that Kyiv could fall.

As Russian tanks, troops and aircraft pushed closer to Ukraine’s capital city, Biden, speaking to the nation from the White House, promised to inflict a “severe cost on the Russian economy” that will hamper its ability to do business in foreign currencies.

“This is a dangerous moment for all of Europe,” Biden said, adding that the “next few weeks and months will be hard on the people of Ukraine.”

The Russian military effectively eliminated Ukraine’s air defenses and rapidly advanced across the neighboring country, meaning Kyiv could quickly be overrun as well, a senior Western intelligence official said.

After weeks of warnings that an attack would bring about a “massive” economic response, Biden announced that the U.S. would sanction Sberbank -- Russia’s largest lender -- and four other financial institutions that represent an estimated $1 trillion in assets, as well as a broad swath of Russian elites and their family members. Treasury said the penalties target “nearly 80 percent of all banking assets in Russia.”

“The sanctions we imposed exceed anything that’s ever been done,” Biden said. “The sanctions we imposed have generated two-thirds of the world joining us. They are profound sanctions.”

At the same time, Biden made clear that Western powers, for all their desire to inflict punishment on Putin, were not willing to sacrifice their own economies to do so. He said restrictions on currency clearing would include carve-outs for energy payments, a crucial source of revenue for Russia. Banning such sales would likely crater global energy markets and cause shortages in Europe.

To cushion the impact of the conflict and fresh sanctions on Americans, Biden said the U.S. will release additional barrels of oil from the U.S. Strategic Petroleum Reserve as conditions warrant.

The U.S. already authorized the release of 50 million barrels of crude from the reserve last year, well before Russia’s invasion of Ukraine.

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