The U.S. and the European Union are zeroing in on a package of sanctions against Russia should President Vladimir Putin decide to invade Ukraine, according to people familiar with the matter and documents seen by Bloomberg.
The measures would broadly fall into several categories including: restrictions on the refinancing of Russian sovereign debt, financial sanctions, and the singling out of individuals and entities close to the Kremlin. Western allies are also working on a series of trade-related measures covering key goods and sectors.
The Biden administration and its European counterparts have been coordinating closely over several weeks to pin down the details of the package, which is now close to being finalized, the people said.
Although there is broad agreement among allies that the sanctions would be implemented in the event of an invasion, there is not yet a joint agreement on other potential trigger points and the consequence of aggressive or destabilizing acts that don’t amount to a further incursion by Russian forces into Ukraine that don’t amount to a full invasion by Russian forces. The Kremlin has backed separatists in eastern Ukraine and the U.S. and others have warned Russia might also opt for a limited incursion into those areas.
A spokeswoman for the U.S. National Security Council didn’t immediately comment on Friday evening. Putin has said he has no plans to invade.
The financial sanctions would see some of Russia’s biggest banks prohibited from some interbank operations in U.S. dollars, such as clearing.
