WASHINGTON — The United States has responded to Russia’s invasion of Ukraine with a sanctions package designed to strike at the core of Russia’s financial system, restrict access to advanced technology and increase the economic cost of President Vladimir Putin’s decision to launch a full-scale military assault on a neighboring country.

President Joe Biden said Thursday that the United States and its allies would impose “severe costs” on Russia while avoiding the direct deployment of U.S. forces into Ukraine. The measures announced by Washington target Russia’s largest banks, state-linked companies, senior officials and technology imports, while NATO has moved additional defensive forces toward its eastern members. In remarks Thursday, Biden framed the response as an effort to isolate Russia economically while reinforcing NATO territory.

The White House said the package reaches all 10 of Russia’s largest financial institutions, which together hold nearly 80% of the country’s banking-sector assets. A White House fact sheet said the restrictions are intended to impair Russia’s ability to raise capital, transact in major currencies and obtain technology needed for military and high-end industrial production.

Financial pressure moves to the center of the response

The Treasury Department imposed full blocking sanctions on VTB Bank, Russia’s second-largest financial institution, and correspondent and payable-through account restrictions on Sberbank, Russia’s largest bank. The Treasury action also targeted additional Russian financial institutions, state-owned enterprises and individuals tied to the Kremlin.

The strategy is broader than freezing the assets of a small group of officials. By restricting access to dollar-clearing and other international financial channels, U.S. officials are seeking to raise transaction costs across a large part of the Russian economy. The measures also increase pressure on foreign banks and companies that must decide whether dealings with sanctioned Russian institutions are legally or commercially viable.

On Friday, Treasury escalated the personal component of the sanctions by designating Putin and Foreign Minister Sergei Lavrov, along with other members of Russia’s Security Council. The department said the rare sanctions against a sitting head of state reflected direct responsibility for the invasion.

The financial measures are being coordinated with the European Union, United Kingdom, Canada, Japan and other partners. The breadth of that coalition matters because Russia has spent years reducing some exposure to the United States and increasing reserves and trade relationships elsewhere. The effectiveness of the sanctions will depend in part on whether Moscow can reroute transactions, exports and financing through jurisdictions that do not participate in the restrictions.

Export controls target Russia’s technological capacity

The Commerce Department has also imposed sweeping restrictions on exports to Russia of semiconductors, computers, telecommunications equipment, information-security products, lasers and sensors. The Commerce Department said the controls are designed to restrict Russia’s access to products needed for its defense, aerospace and maritime sectors and to degrade the country’s capacity to sustain advanced industrial production over time.

The new rules extend beyond items shipped directly from the United States. Washington is using foreign-produced direct product rules to reach certain goods made abroad with U.S. software, technology or equipment. That approach can give the United States leverage over global semiconductor supply chains even when the finished product is manufactured in Asia or Europe.

The White House estimates that the controls will cut off more than half of Russia’s high-tech imports. That would not immediately halt Russian military operations, but it could create increasing difficulties in replacing advanced components, maintaining aircraft and weapons systems, and expanding domestic production of sophisticated electronics.

The restrictions also create substantial compliance obligations for U.S. and foreign companies. Exporters must assess whether products, components or customers fall under new licensing requirements, while technology manufacturers are reassessing Russian sales and distribution relationships in real time.

NATO reinforces its eastern flank

The sanctions are being paired with military steps intended to deter any attack on NATO members. Defense Secretary Lloyd Austin held calls with allied defense ministers Thursday as the Pentagon coordinated force posture changes. A Defense Department readout said the discussions focused on Russia’s assault and the alliance’s defensive response.

NATO leaders met Friday and condemned what they called Russia’s “full-fledged invasion” of Ukraine. In a joint statement, the alliance said it had deployed defensive land and air forces to its eastern members and activated NATO defense plans to prepare for contingencies.

The distinction between defending NATO territory and intervening directly in Ukraine remains central to U.S. policy. Ukraine is not a NATO member and therefore is not covered by the alliance’s Article 5 collective-defense commitment. Biden has repeatedly said U.S. forces will not fight Russian troops in Ukraine, while emphasizing that the United States will defend “every inch” of NATO territory.

Diplomatic isolation deepens

At the United Nations, Russia used its veto Friday to block a Security Council resolution condemning the invasion and demanding the withdrawal of Russian forces. The United Nations reported that 11 members voted in favor, Russia voted against and China, India and the United Arab Emirates abstained.

The veto was expected because Russia is a permanent member of the Security Council, but the vote underscored the diplomatic contest now accompanying the economic and military crisis. Washington and its allies are seeking to demonstrate that Russia is internationally isolated, while Moscow is working to preserve relationships with countries that have not joined Western sanctions.

The immediate consequences of the U.S. measures are difficult to quantify while fighting continues across Ukraine. Financial sanctions can cause rapid disruption, but export controls often exert their greatest effect over months as inventories are depleted and replacement components become harder to obtain. Russia also retains substantial energy exports and has accumulated significant financial reserves, giving Moscow buffers against some forms of pressure.

Still, the scale of the American response marks a sharp escalation from the sanctions imposed after Russia’s 2014 seizure of Crimea. Washington is now attempting to use access to the dollar system, global banking channels and U.S.-linked technology supply chains as coordinated instruments of pressure. The central question is whether those tools, combined with allied measures and Ukrainian resistance, can alter Russia’s calculations without widening the conflict into a direct confrontation between nuclear-armed powers.