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U.S. president Joe Biden announced tougher sanctions directly targeting Russian banks, access to financial markets and members of its "elite" class in what he has described as a "first tranche", and said there could be more to come.

In a speech on Feb. 23 (Singapore time), Biden warned that Russia may resort to further provocation by Russia to try and justify further military action, and said that no one should be "fooled".

Background

On Feb. 22 (Singapore time), Putin and Russia recognised the "independence" of the breakaway regions of Luhansk and Donetsk in eastern Ukraine.

Putin also signed decrees ordering Russian troops into those areas for so-called "peacekeeping" purposes.

In response, Biden signed an executive order authorising limited sanctions targeting the two breakaway regions, and blocking U.S. citizens from investing in those regions, among other things.

Singapore's Ministry of Foreign Affairs said it is "gravely concerned" by escalation of tensions and that Ukraine's sovereignty, independence and territorial integrity must be respected.

Putin's demands

Later, Putin made a list of demands, including Ukraine ceding its claim to the Crimea Peninsula, which Russia annexed in 2014, and give up the military aid it has received in recent years.

When asked about the order to send in Russian troops to the breakaway regions, Putin said, “I didn’t say that the troops will go there right at this moment.”

He clarified that Russia would recognise the full territorial claims of the breakaway regions, including territory currently under the control of the Ukrainian government.

Biden referred to this point in his speech, and said:

"Last night, Putin authorised Russian forces to deploy into these regions. Today he asserted that these regions actually extend deeper than the two areas he recognised, claiming large areas currently under the jurisdiction of the Ukraine government. He’s setting up a rationale to take more territory by force in my view."

U.S., international sanctions

Biden then outlined the sanctions, which are listed in full in a White House statement:

Two state-owned Russian financial institutions, Vnesheconombank and Promsvyazbank and their subsidiaries, will be subject to blocking sanctions. They are heavily involved in financing the Russian defence sector and economic development.

Holding about US$80 billion (S$108 billion) in assets, they will be denied access to the global financial system and the U.S. dollar, and U.S. citizens are barred from doing business with them.

Full blocking sanctions have also been enacted against five Russian individuals with ties to the Russian government, which means that their assets in the U.S. will be frozen, among other things.

Biden also cut off access to new U.S. financing from the Russian government, central bank and sovereign wealth funds, a step which the Washington Post said the European Union has also taken.

In another significant move, German Chancellor Olaf Scholz announced the suspension of approvals for the controversial natural gas pipeline between Germany and Russia, known as Nord Stream 2.

"We will continue to escalate sanctions if Russia escalates," Biden added.

Other moves

Biden also announced that more U.S. troops and equipment will be moved to the U.S. Baltic allies of Estonia, Latvia and Lithuania, who are NATO member states and share borders with Russian territory. Biden emphasised:

"Let me be clear: These are totally defensive moves on our part. We have no intention of fighting Russia. We want to send an unmistakable message, though, that the United States, together with our allies, will defend every inch of NATO territory and abide by the commitments we made to NATO."

Russian troops and military hardware remained in Belarus following joint military exercises after the defence minister extended his invitation. Belarus lies north of Ukraine and the countries share a border.

Biden reiterated his belief that Russia plans to escalate its movements, noting that there are still over 150,000 Russian troops surrounding Ukraine, and it has moved medical equipment and blood supplies near to its border with Ukraine.

"You don’t need blood unless you plan on starting a war," he added.

Turning to the home front, Biden said that while defending freedom comes with a cost, his Administration will take action to safeguard American citizens from possible spikes in the price of energy due to possible Russian retaliation.

"We’re monitoring energy supplies for any disruption. We’re executing a plan in coordination with major oil-producing consumers and producers toward a collective investment to secure stability and global energy supplies. This will be — this will blunt gas prices. I want to limit the pain to the American people are feeling at the gas pump. This is critical to me."

Nevertheless, Biden repeated that the U.S. and its partners remain open to diplomacy, if Russia is serious about it.

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Top image from CSPAN YouTube.

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