Andrea Shalal and David Lawder

WASHINGTON (Reuters] -Senior U.S. official fanned this week to pressure world leaders to either keep putting pressure upon Moscow or to join the campaign to impose sanctions. The war in Ukraine is entering its fifth week, and Russia appears to be recovering from the first economic shock.

Wally Adeyemo, the Deputy Treasury Secretary, met with top officials in London and Brussels. He will end the week in Berlin. Dalep Singh (deputy national security advisor for international economics), pressed Indian officials at New Delhi and Antony Blinken, Secretary of State, discussed the Ukraine conflict with Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan, in Morocco.

As the unexpectedly harsh sanctions against Russian banks and oligarchs begin to fade, the United States is now considering its economic next steps in order to isolate Russian President Vladimir Putin.

After cutting key Russian banks off the SWIFT international financial transaction network, and immobilizing the vast majority of Russia’s $630billion foreign exchange war chest, half of the Russian rouble was lost. This led to officials from the United States declaring that Moscow was facing a financial crisis.

However, the Russian capital controls and government orders to export businesses to sell foreign currencies, as well as companies accumulating funds for quarter-end tax payments, have helped the ruble to regain its pre-invasion level a month later. Although they are still trading on Russia’s stock exchange, their value has fallen.

VTB Russian Bank, which is a main target of sanctions, continues to be open for business in Europe. It has received billions in deposits, mostly from German savers. After Visa (NYSE 🙂 and Mastercard(NYSE :), Russian banks have begun to look at China’s UnionPay credit-card system.

Russia’s largest economic survival line has been left unaffected by the sanctions. These sanctions could have an impact on energy sales to Europe. At current prices, this amount can reach 500 million euros (about $555 million). Russia wants to pay in Russian roubles gas prices starting Friday. This could further boost its currency.

Officials say that President Biden is working with European allies to punish Putin while trying to influence leaders who have been watching as the conflict drags on.

One senior U.S. official, who spoke on condition of anonymity, said that the United States must continue to put pressure on Russia and support Ukraine. This is a problem that faces the world free of all dictatorships. It will take a while, so we must be ready.”

CONTACTING CHINA, WARNING INDIA

These visits come on the heels Biden’s recent visit to Europe and are happening as Russia and China, the second-largest economies in the world, get closer. On Wednesday, Wang Yi, the Chinese Foreign Minister met Sergei Lavrov his Russian counterpart. They reaffirmed Beijing’s commitment to enhancing bilateral relations and sustaining cooperation.

One European official said that Adeyemo was discussing sanctions with European counterparts. They discussed the potential impact of India on Russia’s sanctions evasion attempts and how countries such as Germany can cover their energy requirements in case of an embargo by Russia.

Treasury reported that officials met in Brussels and discussed ways to coordinate sanctions implementation and enforcement. They also expanded joint cooperation on the issue of sanctions.

The key issue was Russia’s demand for foreign buyers to pay in roubles beginning Friday, or risk supply cuts. European capitals rejected the request, while Germany’s government called it “blackmail.”

Catherine Novelli, an ex-diplomat and senior U.S. trade official, stated that it is crucial the United States maintains its relations with allies. She also highlighted the difficulties in maintaining momentum for sanctions and other punitive actions after initial outrage recedes.

Singh, the White House’s economic advisor, said that Washington wouldn’t set strict guidelines regarding oil purchases, however he warned officials against accelerating the purchase process.

India’s military dependency on Russian technology has led to it trying to maintain its long-standing relationships with Russia. Contrary to other Quad members – Australia Japan USA – India has not placed sanctions on Russia.

Singh spoke before Russian Foreign Minister Lavrov arrived in India for a two day trip.

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