Should diplomatic talks fail to prevent an invasion of Ukraine, the Biden administration is preparing to impose sanctions that could hurt Russia's economy.
Financial institutions in the US would not be able to carry out transactions with Russian banks if the sanctions are imposed, according to three unnamed sources.
On the same day, President Joe Biden and his Russian counterpart Vladimir Putin agreed to hold a summit on stability and security in Europe.
Russian companies and individuals are included on the sanctions list. The US Treasury Department says that anyone on the list will have their assets blocked and US citizens will not be able to deal with them.
The sources said that the sanctions could target the top Russian banks.
The White House hasn't publicly announced plans to force US banks to sever relationships with Russian financial institutions. The US has threatened heavy sanctions against Russia.
According to the New York Times, these measures could potentially upend the Russian economy by inducing severe inflation or a stock market crash.
The damage could affect the rest of Europe and even the US, according to The Times. Fuel prices in America could go up if the US targets Russia's oil and gas industries, according to experts.
They told The Times that the goal for Biden was to strike against the Russian economy while sparing the West.
The Office of Foreign Assets Control of the Treasury Department has been contacted by many US financial firms worried about the White House signaling of sanctions.
The US Treasury Department did not reply immediately.
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