An American president might have put on a more disastrous display of ineptitude and decrepitude than Joe Biden did today, but one would be hard-pressed to prove it. Alongside Biden showcasing his rapidly advancing dementia, Jimmy Carter’s “malaise” speech looks utterly Churchillian. The venue was Biden’s response to Vladimir Putin calling his shabby and implausible bluff and simply taking what he’d always wanted (Biden’s Ukraine Response After-Party Produces Some Horrific Optics , Joe Biden Stumbles and Slurs His Way Through an Embarrassing Response to Putin’s Ukraine Invasion).

The optics of the speech aside, let’s take a moment to look at exactly what punishment he inflicted upon Putin for publicly punking him Monday: Vladimir Putin Runs the Table in Ukraine and Shows Joe Biden to Be a Feckless and Unreliable Security Partner.

Sanctions on Russian banks

We’re implementing full blocking sanctions on two large Russian financial institutions: V.E.B. and their military bank.

Two Russian banks were sanctioned: Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (V.E.B.) and Promsvyazbank Public Joint Stock Company (PSB), along with 42 of their subsidiaries.

What does this entail? The banks can’t do business with U.S. banks, and they don’t have access to the U.S. financial system. On the other hand, they can do business with banks outside the United States and use SWIFT, the international financial system. I’m open to admitting that I’m reading this wrong, but it looks like V.E.B. has been under U.S. sanctions since the Crimea annexation.

You can read more details here.

Russian Sovereign Debt Sanctions

The most mendacious claim by Biden was that Russia could no longer raise money in the West:

We’re implementing comprehensive sanctions on Russian sovereign debt.  That means we’ve cut off Russia’s government from Western financing.  It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either.

This simply isn’t true. Russia can’t raise money in the United States, but it can continue to raise money in any country that does not impose sanctions. More important, it can raise money in China. The claim is more dishonest because primary market sanctions have been in place since June 2021. The new sanctions include secondary market sales; that is, the swap of debt instruments between banks, but it only includes bonds issued after March 1, 2022. This means that the only sanctions imposed were for new debt. Debt issued before March 1 can still be bought and sold. Like with the bank sanctions, this only affects U.S. financial institutions.

You can read more details here; an overview of the sovereign debt secondary market is at this link (it is a pdf). I recommend it if you have insomnia.

Individual Russians and Things Sanctioned

Finally, three individual Russians were sanctioned, which means any U.S. bank accounts they own or any U.S. property where they possess at least a 50 percent share are frozen.

• Denis Aleksandrovich Bortnikov (Denis Bortnikov), is currently a Deputy President of Russian-state owned financial institution V.T.B. Bank Public Joint Stock Company (V.T.B. Bank) and a Chairman of the V.T.B. Bank Management Board.
• Petr Mikhailovich Fradkov is the Chairman and C.E.O. of PSB.
• Vladimir Sergeevich Kiriyenko, previously worked as a vice president at the Russian state-controlled company, Rostelecom, and is presently the C.E.O. of V.K. Group, the parent company of Russia’s top social media platform, VKontakte.

Five ships–two container, two tanker, and one roll-on-roll-off–belonging to PSB were sanctioned, meaning they can’t come to an American port.

The bottom line here is that the sanctions imposed by Biden on Russia are laughable. First, the banks are free to operate outside the United States. The sanctions aren’t “secondary sanctions,” which means that Deutsche Bank or Credit Suisse (these names are used purely as examples, and I’m not implying they are engaged in dealing with sanctioned entities) could trade in Russian sovereign debt and do business with the sanctioned banks, so long as they didn’t do it via their U.S. subsidiaries.

This flaccid response is hardly likely to deter Vladimir Putin. In fact, it looks like Biden made good on his January promise to permit a limited incursion by the Russians. This brings me back to my observation in Vladimir Putin Runs the Table in Ukraine and Shows Joe Biden to Be a Feckless and Unreliable Security Partner:

What we have just experienced was one of two things. Either Putin punked Joe Biden and left all the world to gape in amazement at the ease and audacity of the act, or he worked hand-in-glove with Biden and Anthony Blinken to carve up Ukraine at virtually no cost to Putin–sort of reminiscent of how Poland was dismembered in 1939.

TRANSCRIPT

THE PRESIDENT:  Trying to make up your mind, huh?  (Laughter.)

Well, good afternoon.  Yesterday, Vladimir Putin recognized two regions of Ukraine as independent states and he bizarrely asserted that these regions are no longer part of Ukraine and their sovereign territory.  To put it simply, Russia just announced that it is carving out a big chunk of Ukraine.

Last night, Putin authorized Russian forces to deploy into the region — these regions.  Today, he asserted that these regions are — actually extend deeper than the two areas he recognized, 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.  And if we listen to his speech last night — and many of you did, I know — he’s — he’s setting up a rationale to go much further.

This is the beginning of a Russian invasion of Ukraine, as he indicated and asked permission to be able to do from his Duma.

So, let’s begin to — so, I’m going to begin to impose sanctions in response, far beyond the steps we and our Allies and partners implemented in 2014.  And if Russia goes further with this invasion, we stand prepared to go further as — with sanction.

Who in the Lord’s name does Putin think gives him the right to declare new so-called countries on territory that belonged to his neighbors?  This is a flagrant violation of international law, and it demands a firm response from the international community.

Over the last few months, we have coordinated closely with our NATO Allies and partners in Europe and around the world to prepare that response.  We’ve said all along and I’ve told Putin to his face a mon- — a month a- — more than a month ago that we would act together and the moment Russia moved against Ukraine.

Russia has now undeniably moved against Ukraine by declaring these independent states.

So, today, I’m announcing the first tranche of sanctions to impose costs on Russia in response to their actions yesterday.  These have been closely coordinated with our Allies and partners, and we’ll continue to escalate sanctions if Russia escalates.

We’re implementing full blocking sanctions on two large Russian financial institutions: V.E.B. and their military bank.

We’re implementing comprehensive sanctions on Russian sovereign debt.  That means we’ve cut off Russia’s government from Western financing.  It can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either.

Starting tomorrow [today] and continuing in the days ahead, we will also impose sanctions on Russia’s elites and their family members.  They share in the corrupt gains of the Kremlin policies and should share in the pain as well.

And because of Russia’s actions, we’ve worked with Germany to ensure Nord Stream 2 will not — as I promised — will not move forward.

As Russia contemplates its next move, we have our next move prepared as well.  Russia will pay an even steeper price if it continues its aggression, including additional sanctions.

The United States will continue to provide defensive assistance to Ukraine in the meantime.  And we’ll continue to reinforce and reassure our NATO Allies.

Today, in response to Russia’s admission that it will not withdraw its forces from Belarus, I have authorized additional movements of U.S. forces and equipment already stationed in Europe to strengthen our Baltic Allies — Estonia, Latvia, and Lithuania.

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.

We still believe that Russia is poised to go much further in launching a massive military attack against Ukraine.  I hope I’m wrong about that — hope we’re wrong about that.  But Russia has only escalated its threat against the rest of Ukrainian territory, including major cities and including the capital city of Kyiv.

There are — there are still well over 150,000 Russian troops surrounding Ukraine.  And as I said, Russian forces remain positioned in Belarus to attack Ukraine from the north, including war planes and offensive missile systems.

Russia has moved troops closer to Ukraine’s border with Russia.  Russia’s naval vessels are maneuvering in the Black Sea to Ukraine’s south, including amphibious assault ships, missile cruisers, and submarines.

Russia has moved supplies of blood and medical equipment into position on their border.  You don’t need blood unless you plan on starting a war.

And over the last few days, we’ve seen much of the playbook that Secretary Blinken laid out last week at the United Nations Security Council come to pass: a major increase in military provocations and false-flag events along the line of contact in the Donbas; dramatically staged, conveniently on-camera meeting of Putin’s Security Council to grandstand for the Russian public; and now political provocation of recognizing sovereign Ukrainian territory as so-called independent republics in clear violation, again, of international law.

President Putin has sought authorization from the Russian parliament to use military force outside of Russian territory.  And this set the stage for further pretexts and further provocations by Russia to try to justify further military action.

None of us — none of us should be fooled.  None of us will be fooled.  There is no justification.

Further Russian assault into Ukraine remains a severe threat in the days ahead.  And if Russia proceeds, it is Russia, and Russia alone, that bears the responsibility.

As we respond, my administration is using every tool at our disposal to protect American businesses and consumers from rising prices at the pump.  As I said last week, defending freedom will have costs for us as well, here at home.  We need to be honest about that.

But as we will do — but as we do this, I’m going to take robust action and make sure the pain of our sanctions is targeted at the Russian economy, not ours.

We are closely 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 the American people are feeling at the gas pump.  This is critical to me.

In the last few days, I have been in constant contact with European leaders, including with Ukrainian President Zelenskyy.  Vice President Harris met in person with leaders in Germany over the weekend at the Munich Conference, including President Zelenskyy.

At every step, we have shown that the United States and our Allies and partners are working in unison — which he hasn’t been counting on — Mr. Putin.  We’re united in our support of Ukraine.  We’re united in our opposition to Russian aggression.  And we’re united in our resolve to defend our NATO Alliance.  And we’re united in our understanding of the urgency and seriousness of the threat Russia is making to global peace and stability.

Yesterday, the world heard clearly the full extent of Vladimir Putin’s twisted rewrite of history, going back more than a century, as he waxed eloquently, noting that — well, I’m not going to go into it, but nothing in Putin’s lengthy remarks indicated any interest in pursuing real dialogue on European security in the year 2022.

He directly attacked Ukraine’s right to exist.  He indirectly threatened territory formerly held by Russia, including nations that today are thriving democracies and members of NATO.  He explicitly threatened war unless his extreme demands were met.

And there is no question that Russia is the aggressor.  So we’re clear-eyed about the challenges we’re facing.

Nonetheless, there is still time to avert the worst-case scenario that will bring untold suffering to millions of people if they move as suggested.

The United States and our Allies and partners remain open to diplomacy if it is serious.  When all is said and done, we’re going to judge Russia by its actions, not its words.

And whatever Russia does next, we’re ready to respond with unity, clarity, and conviction.

We’ll probably have more to say about this as we — if it moves on.  I’m hoping diplomacy is still available.

Thank you all very much.