On the Money — Biden boosts sanctions on Russia

President Biden imposed new sanctions on Russia and the Putin family Wednesday, but lawmakers in both parties want even more. We’ll also look at growing pressure on the oil industry to bring down gas prices and Biden’s new SEC nominees.

But first, read up on former Rep. Joe Crowley (D-N.Y.)’s Broadway career. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.

Biden targets Putin’s daughters with latest sanctions

The Biden administration on Wednesday announced a wave of new sanctions targeting Russia’s two largest banks, Russian President Vladimir Putin’s daughters, the wife and daughter of Russia’s top diplomat and blacklisted members of Russia’s Security Council.  

A senior administration official said the measures are being imposed in alignment with allies in the Group of Seven nations and the European Union and are in response to “the sickening brutality” recently discovered in the Kyiv suburb of Bucha following the retreat of Russian forces.  

• The measures announced Wednesday impose full blocking sanctions on Russia’s largest state-owned bank, Sberbank, and its largest private bank, Alfa Bank, freezing any assets “touching” the U.S. financial system and prohibiting Americans from doing business with them. 
• The administration imposed personal sanctions against two of Putin’s adult daughters, Maria Putina and Katerina Tikhonova and the wife and daughter on Russian Foreign Minister Sergey Lavrov. 

The background: Ukrainian President Volodymyr Zelensky has accused Russia of committing genocide, while the U.S. and other international leaders have said the images of civilians discovered bound, shot at close range, piled in cellars and left for dead on the street likely amount to war crimes.  

The Hill’s Laura Kelly has more here. 

BIDEN UNDER PRESSURE

While the Biden administration has received bipartisan praise for sanctions imposed on Russia so far, it’s also under pressure from both parties to ramp them up even further. 

Members of the House Financial Services Committee urged Treasury Secretary Janet Yellen during a Wednesday hearing to tighten the penalties on the Russian economy in response to atrocities committed in Bucha.  

“We must show the Russian people the nation of Tolstoy and Tchaikovsky will be completely isolated with a stone age economy as long as they are governed by a butcher,” said Rep. Jim Himes (D-Conn.), his voice rising in anger. 

• Many Republicans on the panel urged the administration to cut off the Russian energy sector’s access to foreign markets. Sales of oil and gas are one of few ways remaining that Russian can obtain American dollars and other currencies essential to propping up its severely damaged economy.  
• Though President Biden has banned imports of Russian oil and gas to the U.S., he has refused to impose sanctions that could limit European access to Russian energy. 

“Unfortunately, many of our European partners remain heavily dependent on Russian natural gas, as well as oil, and they are committed to making transition away from that entrance as rapidly as possible,” Yellen said, adding it was “essential” to work in coordination with allies to effectively hinder Russia. 

Sylvan takes us to the hearing. 

Read More: Senators close in on deal on Russia trade, oil ban 

WAKE ME UP WHEN SEPTEMBER STARTS

Examining Biden’s move on freezing student loans 

President Biden’s extension of a pause on federal student loan payments means millions of borrowers will start paying back what they owe just two months before the November midterm elections.

Biden moved the deadline from May until the end of August after sustained pressure from Democrats and outside advocates to keep the freeze going during a time of income uncertainty for many Americans amid the pandemic.

The president said the latest extension is “to enable Americans to continue to get back on their feet after two of the hardest years this nation has ever faced” and to allow them to achieve “greater financial security.”

Here are five questions about Biden’s latest student loan pause:

1. How long will it last?

Some Democrats, led by Sen. Patty Murray (D-Wash.), called on Biden to push the payment pause until 2023, which would put off repayments until after the November midterms. But Biden’s move pushes repayments to just over two months before the election, which some warned could spell political trouble. 

2. What loans are covered?

In each freeze, the Department of Education (DOE) directed loan servicers to grant forbearance to federal loan borrowers without accruing interest. The pause has applied to student loans held by federal government agencies, which doesn’t include private student loans. 

3. Will it be extended again?

Biden appeared to imply that this will be the last extension, saying it allowed for additional time to assist borrowers as the country continues to recover. White House press secretary Jen Psaki, however, hedged a bit, saying the administration will make an evaluation on a “range of factors as we get closer to that timeline” when asked if borrowers should expect to pay after August. 

4. What’s the latest on forgiveness?

The White House said that Biden has not dismissed a possible executive-level cancellation on student debt, after the president campaigned on forgiving at least $10,000 per person during the 2020 presidential campaign. 

5. When will we know more?

DOE outlined its plans to be in contact with borrowers before the loan repayments restart, signaling traction in that direction for the first time in over two years. Officials said that during the upcoming five-month period, it will work to prepare borrowers and offer some help to restart their payments in “good standing.” 

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OIL GRILLING

Lawmakers press oil CEOs on high gas prices 

Democrats on a subcommittee of the House Energy and Commerce Committee grilled oil executives Wednesday over the disparities between oil and gas prices, while the committee’s Republican members framed high prices as a consequence of Biden administration energy policies. 

Oversight and Investigations Subcommittee Chair Diana DeGette (D-Colo.) confronted the witnesses, who included executives from BP, Chevron, ExxonMobil, Devon Energy and Shell and Pioneer Natural Resources, directly asking them “Why is there a disconnect between the falling price of crude oil and the fact that the cost of gas is staying the same?” 

In response, BP Chairman and President David Lawler cited the complicating factors along the supply chain that he said may delay any drop in oil prices being reflected in gas prices. 

The panel’s Democrats repeatedly emphasized the record profits the oil industry reported in 2021 amid the current sky-high prices.

The witnesses largely defended their business practices, denying under oath that they had artificially increased prices to profit from the Ukraine conflict.  

The Hill’s Zack Budryk has more here. 

Read more: Senators ask FTC to probe West Coast gas prices

ON NOTICE

Biden warns Amazon while rallying Big Labor: ‘Here we come’ 

President Biden on Wednesday issued a warning to Amazon days after workers at one of its New York City sites voted to be represented by a union, a first in the nation for one of the tech giant’s facilities. 

“And by the way, Amazon, here we come,” Biden said at the North America’s Building Trades Unions legislative conference in Washington following remarks about giving workers the choice to join a union.  

“Watch! Watch!” he added to applause erupting in the room. 

Biden highlighted the creation of a White House task force on worker organization and empowerment “to make sure the choice to join a union belongs to workers alone” and again called on lawmakers to pass the PRO Act, which would stiffen penalties for employers who violate workers’ rights and strengthen retaliation protections. 

His comments come after labor advocates and Democratic lawmakers called for investigations into Amazon’s controversial labor practices amid multiple high-profile unionization efforts.  

The Hill’s Alex Gangitano has more here. 

Good to Know

Domestic flight prices have increased 40 percent since the beginning of 2022 and are expected to rise an additional 10 percent next month. 

Flight booking website Hopper said the price of a domestic round trip is averaging $330, a 7 percent jump above 2019 costs. International round trips are currently averaging at $810, a 25 percent increase from the start of the year. 

Here’s what else we have our eye on: 

• President Biden nominated two people on Wednesday to serve as commissioners for the Securities and Exchange Commission. 
• Senators believe they are closing in on a deal to quickly pass long-stalled bills ending normal trade relations with Russia and codifying an oil ban, after weeks of negotiations.  
• President Biden on Wednesday signed into law legislation reforming the U.S. Postal Service in a bid to increase transparency and stabilize the financial footing of what he called an essential agency. 

That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.

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