The measures, which would only be implemented if Russia invades Ukraine, aim to hurt the Russian economy by cutting the “correspondent” banking relationships between targeted Russian banks and U.S. banks that enable international payments.

While U.S. authorities have said banking restrictions would be part of a package of possible sanctions, the administration’s plan to cut correspondent banking ties – which underpin global money flows – has not previously been reported.

The United States 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 U.S. banking system, banning their trade with Americans and freezing their U.S. assets, the same sources said.