US President Joe Biden’s administration has prepared an initial package of sanctions against Russia that would bar the US banks from processing transactions with big Russian banks, Reuters reports, citing three people familiar with the matter.

Biden plan would cut "correspondent" banking relationships between targeted Russian banks and US banks, the sources said.

Sources were further cited, as saying that “the US will also wield its most powerful sanctioning tool against certain Russian individuals and companies by placing them on the Specially Designated Nationals (SDN) list, effectively kicking them out of the US banking system, banning their trade with Americans and freezing their US assets.”

The sources added that these measures would only be implemented if Russia invades Ukraine

Market reaction

The risk-on market mood remains unfazed by the above headlines, as investors remain hopeful ahead of the proposed Biden-Putin Summit.

The safe-haven US dollar suffers from the risk-on wave while the S&P 500 futures add 0.50% on the day. Gold price consolidates its correction from an eight-month top of $1,908.