US bans citizens from doing business with Russian central bank

• Putin’s aim to consolidate power over Ukraine has witnessed massive resistance

• Heavy duty sanctions from all over the world have left the ruble swooning

The US levied another round of heavy sanctions against Russia’s central bank, banning Americans from doing any business with the bank as the ex-Soviet country continued to wage war on Ukraine.

The Biden administration’s latest move will also freeze the Russian central bank’s assets within the US. The new measures will also target the National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation.

Read more: Germany puts on hold gas pipeline amid Russia-Ukraine crisis

CNBC spoke to a senior Biden administration official who outlined the governmnet’s plans on the condition of anonymity.

The official said that the government wanted to put these actions in place before US markets open because they had gained intelligence over the course of the weekend from allies and partners that the Russian Central Bank was attempting to move assets.

He added there was information that a great deal of asset flight would take place starting on Monday morning from institutions around the world.

“Our strategy to put it simply is to make sure that the Russian economy goes backward. As long as President Putin decides to go forward with his invasion of Ukraine,” the official said.

Removal from SWIFT

On Saturday, the U.S., European allies and Canada agreed to remove key Russian banks from the interbank messaging system, SWIFT, severing the country from much of the global financial system.

Also read: Aiding Ukraine to protect its sovereignty - The West’s role

The U.S., the U.K. and the European Union announced sanctions against Putin and Russian Foreign Minister Sergey Lavrov.

Troubled ruble

The  heavy sanctions levied by the West have sent the Russian markets rolling downwards. The Russian ruble fell as low as 111 on Monday to the U.S. dollar from 83 on Friday, a drop of more than 20%.

To cushion the currency’s fall, the Bank of Russia, doubled the country’s benchmark interest rate to 20% from 9.5%.

Russia’s stock exchange, the Moscow Exchange remained closed on Monday.

Read more: White House pledges to avoid future sanctions on Russian crude oil