The United States has imposed sanctions on two of Russia’s largest financial institutions and a number of Kremlin-linked individuals after Russian troops invaded Ukraine, confirming the West’s worst fears.

The sanctions will affect Russia’s largest state-owned banks – Sberbank and VTB, Otkritie Financial Corporation, Sovcombank and Novikombank and their subsidiaries.

VTB and the three banks are subject to blocking sanctions involving a ban on transactions with them, while Sberbank is subject to sanctions on correspondent and payment accounts,

“Within 30 days, OFAC requires all U.S. financial institutions to close all correspondent or payment accounts of Sberbank and refuse any future transactions involving Sberbank or its subsidiaries with foreign financial institutions,” the U.S. Treasury Department said in a statement.

Payments that Sberbank attempts to make in U.S. dollars for its customers – from technology to transportation – will be interrupted and rejected as soon as the payment reaches a U.S. financial institution.

To reduce Russia’s ability to finance an invasion of Ukraine or other high-priority projects of Putin, OFAC has expanded restrictions on debt and equity capital raising, the U.S. Treasury Department said.

The ban on raising debt and equity capital will affect 13 Russian companies and banks.

American investors are prohibited from buying new debt with a maturity of more than 14 days or shares of 11 Russian state companies and two private banks: Gazprom, Sberbank, Gazprombank, Rosselkhozbank, Gazpromneft, Transneft, Rostelecom, Rusgidro, Alrosa, Sovcomflot, Russian Railways, Alfa-Bank and Moscow Credit Bank.

The U.S. sanctions apply to new debt or equity issued after March 26.

RZD, Sovcomflot, Gazprom, Gazpromneft, RSHB, Otkritie and Sovcombank did not respond to a request for comment.

VTB said it was ready for the new restrictions. Sberbank said that the adopted restrictions do not affect the safety and availability of clients’ funds, but it is studying new working conditions in connection with sanctions on correspondent accounts.

A spokesman for RusHydro, which operates most of Russia’s hydroelectric power plants, said the sanctions “will not affect reliable and uninterrupted power supply to consumers”; the company’s entire loan portfolio is ruble-denominated.

Alrosa said it currently has low net debt, between 0.0x and 0.5x to EBITDA and virtually zero short-term debt.

Rostelecom, whose representative was quoted by Interfax, said that restrictions on raising capital in currency would not affect its operations; the company has a fully ruble-denominated portfolio of raised funds.

Gazprombank said that it operates in the normal mode, fulfilling its obligations, and the restrictions imposed on it are not blocking and do not “affect the current operational activities of the bank”.

Alfa Bank said it will temporarily be unable to issue new Eurobonds or place share issues, while Visa and Mastercard payments are available worldwide and currency transfers are unrestricted.

The Biden administration also announced sweeping export restrictions against Russia, limiting its access to global exports of many goods, from commercial electronics and computers to semiconductors and airplane parts.

The restrictions announced by the Commerce Department involve a significant expansion of the so-called Foreign Direct Product rule. Under it, companies that manufacture high- and low-tech goods abroad using U.S. technology must request a license in the United States before supplying them to Russia.

Washington also expanded sanctions against “Russian elites” by imposing additional blocking sanctions against families close to Vladimir Putin.

The U.S. blacklist included, among others, the son of Sergei Ivanov, former head of the presidential administration and now special envoy to the Russian president, Sergei Ivanov; Andrei Patrushev, son of Nikolai Patrushev, former FSB director in charge of the Security Council; and Ivan, son of Rosneft head Igor Sechin.

Russian President Vladimir Putin has authorized a military operation in Ukraine. Russian troops attacked Ukraine by land, sea and air early Thursday morning, confirming the West’s worst fears.

In the evening, Britain also reacted to Moscow’s actions by announcing a sweeping new package of sanctions.