Washington

With Russia’s conflict with Ukraine deepening with every hour, the United States (US), European Union (EU) and United Kingdom (UK) have decided to put crippling sanctions on the financial sector in Russia. 

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The measures taken to put Russia on back foot include a block on its access to the global financial system, SWIFT, and, for the first time, restrictions on its central bank.  

On Saturday, the measures were announced jointly to "hold Russia to account and collectively ensure that this war is a strategic failure for (Russian President Vladimir) Putin."  

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This is a part of a new round of financial sanctions.  

The key Russian banks are being cut out of the SWIFT financial messaging system. While the restrictions over central bank look to target over USD 600 billion in reserves that the Kremlin has at its disposal. It is meant to limit ability of Russia to support the ruble as sanctions by the West intensify.  

These steps were framed to send the ruble into "free fall" and promote soaring inflation in the Russian economy, the US officials said.   

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EU Commission President Ursula von der Leyen, while announcing the measures in Brussels, said would push the bloc also to "paralyse the assets of Russia's Central bank" so that its transactions would be frozen. Cutting several commercial banks from SWIFT "will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally," she added.  

"Cutting banks off will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and imports. Putin embarked on a path aiming to destroy Ukraine, but what he is also doing, in fact, is destroying the future of his own country," she added.  

(With inputs from agencies)