These sanctions join Western allies' measures to punish Russia for its recent actions.
At the White House, Mr. Biden stated that "This is the beginning Russian invasion of Ukraine." "So, I'm going start to impose sanctions as a response to the Russian invasion of Ukraine," Mr. Biden said at the White House.
The sanctions announced by the president are "first tranches of sanctions" that will impose costs upon Russia for its recent actions against Ukraine. The president stated that if Russia continues to invade Ukraine, we will continue to impose sanctions.
For weeks, Mr. Biden warned that a Russian invasion of Ukraine would cause the U.S. and its allies to impose "severe and swift costs" on Russia. These new sanctions target Russian institutions and individuals who are close to Russian President Vladimir Putin. They also seek to impose severe financial penalties on Russia for its attempts to seize control of the eastern Ukraine separatist Luhansk, Donetsk areas.
The U.S. imposed a first round of sanctions on the two regions Monday after Putin declared the territories independent and ordered the deployment of "peacekeeping forces there." Mr. Biden issued an executive order prohibiting new U.S. investments, trade, and financing in rebel-backed areas.
Tuesday's sanctions came after Germany stopped certifying the Nord Stream 2 pipeline. This was done to restrict Russia's future access of European energy markets. Additional sanctions were also announced Tuesday by the United Kingdom and European Union against Russia.
New U.S. sanctions target Russian financial system, elites
New financial sanctions imposed by the Biden administration are targeting key Russian institutions as well as five members Putin's inner circle. Mr. Biden stated that they "share in corrupt Kremlin policies" and should also share in the pain.
The Biden administration will impose "full-blocking" sanctions on the state-owned VEB, Promsvyazbank or PSB along with 42 of their subsidiary banks, and comprehensive sanctions on Russia’s sovereign debt. This is an attempt to isolate Russia from Western financing.
VEB and PSB are prevented from doing business in the U.S., and they are denied access to the U.S. finance system. According to the Treasury Department, assets in the U.S. have been immediately frozen.
The Biden administration sanctioned three Kremlin-connected Oligarchs: Aleksandr Bortnikov, his son Denis Bortnikov, Sergei Kiriyenko, and his son Vladimir Kiriyenko; as well as Petr Fradkov.
Fradkov is the CEO and chairman of PSB. This organization primarily funds Russian defense initiatives. Aleksandr Bortnikov, Russia's security service and successor of the Soviet KGB, is the head for Russia's FSB. He is also a member Putin's national safety council. According to the Treasury Department, his son Denis is the deputy president at a state-owned financial institution.
According to Treasury, Sergei Kiriyenko was Putin's first deputy chief-of-staff and the Russian leader’s "domestic strategy curator." Vladimir Kiriyenko is his son and the CEO of the parent company, Russia's largest social networking platform.
The president stated that Russia will be judged by its actions and not its words after all was said and done. "Whatever Russia does next we are ready to respond with unity and clarity, conviction."
Monday's executive order by Mr. Biden prohibited any American from investing in the two regions that are now independent. It also prohibits any importation or exportation to the U.S. or vice versa of any "goods or services or technology."
The president also authorized sanctions against anyone found guilty of engaging in set activities within the two separatist-backed areas.
Germany takes action to stop Nord Stream 2 being certified
After Putin's latest aggression against Ukraine, Germany took steps to halt Nord Stream 2's certification. This was a major setback for Russia's ambitions to have more influence over European energy markets.
Gazprom, Russia’s state-backed energy company is the owner of the non-operational pipeline. It is a multibillion-dollar project that will double the amount gas transported from Russia to Germany.
The U.S. is opposed to Germany's use of the pipeline and warned that it would increase Russia's dependency on natural gas. Biden stated that the U.S. was working with Germany to stop Nord Stream 2 from moving forward.
EU and U.K. sanctions target Russian banks and government officials
Boris Johnson, Prime Minister of Russia, announced Tuesday that the U.K. would hit five Russian banks as well as three oligarchs using economic sanctions. Rossiya Bank, Black Sea Bank Genbank, IS Bank, Promsvyazbank and Genbank are all banks that the U.K. has sanctioned. Boris Rotenberg, Gennady Timchenko and Igor Rotenberg are three of the wealthy Russians sanctioned under U.K. sanctions.
The U.K. assets of the oligarchs will be frozen and they will be prohibited from travelling to the country.
Johnson stated that the penalties were only the "first tranche, or the first barrage" of what he was prepared to do. He also said that if Russia escalates the crisis, he would hold additional sanctions at readiness.
The European Union's foreign ministers also agreed on a first set of sanctions as a response to Moscow's recognition that the two breakaway republics of eastern Ukraine were being recognized. These sanctions target individuals as well as banks and the ability for the Russian government and state to access the EU's financial and capital markets.
The sanctions targeted 27 Russian individuals, entities, and political, military and media sectors. They also included 351 Russian parliament members who voted to recognize Donetsk and Luhansk as independent.
Other sanctions possible
Tuesday's warning by the president was that additional sanctions could be imposed by the United States if Russia escalates the crisis.
"If Russia continues in this invasion," Mr. Biden stated. In the past, the president warned that the U.S. could sanction Putin personally. This was a step that he didn't take Tuesday.
Future measures may target Russia's acces to the wider international financial system and restrict Russia's ability to export technology.
According to the Associated Press , the U.S. may eventually seek to expel Russia from the SWIFT network. This system is used by financial institutions and banks to process international transactions. However, U.S. officials are reluctant to make that move, with Daleep Singh, deputy national security advisor, citing "spillover effect" that makes kicking Russia out SWIFT unachievable, at least initially.
Singh stated that he will continue to monitor these options and would revise his judgments as the time progresses.
CBS News was informed last month by a U.S. official that the Biden administration was considering controlling semiconductor exports. This would deprive Russia key U.S.-made technologies.