The United States Will No Longer Give Dollars to Russia

by Olha Povaliaieva
Sunday, August 14, 2022
The United States Will No Longer Give Dollars to Russia

America’s largest bank turns Russia off from dollars

The Ministry of finance continues to impose sanctions against Russia, in particular the banks of the aggressor country. In August, the largest US bank in terms of assets, JP Morgan, began to shut down Russian accounts. Correspondent accounts have been sanctioned — without them, dollar payments are impossible.

JP Morgan has already stopped working with some of the aggressor country’s banks. From September 1, the bank will stop dollar operations and other financial enterprises. The Russian bank Saint Petersburg was forced to de-dollarize. JPM informed a major Russian bank about the impossibility of making both incoming and outgoing payments. The small banks of the aggressor country were subject to the same sanctions.

American Citibank also began to warn customers about the termination of cooperation. American banks make an exception for Gazprombank. Through this bank payments for gas, structures of the Moscow exchange, and national clearing centres are made.

Decisions by foreign banks to terminate dollar-denominated transactions created problems for the Russian Federation. The aggressor country cannot rely on financial security. Customers are the first to take risks. De-dollarization may cause banks to fail to meet their obligations to customers.

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