The United States unveiled a broad package of sanctions aimed at restricting Moscow’s war efforts in Ukraine and increasing risks for foreign banks that continue to do business with Russia.
The announcement comes ahead of the G7 summit in Italy, where leaders will discuss further measures that could push the Russian economy into decline.
New entities targeted
The US Treasury Department and the State Department announced sanctions targeting more than 300 entities, including organizations in Russia, China, Turkey, and the UAE, according to what the New York Times reported.
It is worth noting that the Moscow Stock Exchange and its subsidiaries are among those affected, which led to the complexity of transactions worth billions of dollars and the targeting of entities involved in 3 liquefied natural gas projects.
US Treasury Secretary Janet Yellen said: “Today’s actions strike remaining routes for international materials and equipment, including their dependence on vital supplies from third countries.”
Yellen stressed the increased risks faced by financial institutions dealing with the Russian war economy and efforts to eliminate evasion routes and reduce Russia’s access to foreign technology and services.
US Secretary of State Antony Blinken highlighted US concerns about the volume and breadth of exports from China to Russia, which supply Moscow’s military industry, according to the New York Times.
The sanctions also – according to the newspaper – expand the definition of Russia’s “military industrial base,” expanding the scope of secondary sanctions to include numerous Russian individuals and entities, a move that would increase the list of exposed targets from more than 1,000 to about 4,500.
The latest sanctions affect cross-border networks, affecting more than 90 people and entities in countries such as China, South Africa, Turkey and the UAE.
A senior American official indicated that global exports to Russia decreased by about $90 billion, with American exports to Russia stopping for all materials except basic medical materials.
In addition, the Treasury Department expanded the information list of 5 sanctioned Russian financial institutions to include addresses and aliases of their foreign locations.
The Commerce Department added eight Hong Kong addresses to the blacklist, affecting nearly $100 million in high-priority items, including semiconductors.
Vast crowd
The New York Times reported that President Joe Biden, on his way to the G7 summit scheduled for tomorrow, Thursday, aims to:
- Encouraging European countries to take similar measures.
- Disrupting technological ties between China and Russia, which are essential for the modernization of the Russian military.
- The new measures impose restrictions on the Moscow Stock Exchange to prevent foreign investors from dealing with Russian defense companies.
The sanctions hit several Chinese companies accused of helping Russia gain access to vital military equipment such as electronics, lasers and drone components, according to the New York Times.
Minister Blinken announced the imposition of sanctions on more than 100 entities involved in the development of future energy, mineral and mining production in Russia. Despite previous attempts to cut off supplies and financing to Russia, the Russian economy has continued to grow.
Blinken warned China that it could not expect to improve relations with Western countries while supporting the Russian defense industry. At a recent NATO meeting in Prague, Blinken noted that 70% of machine tools and 90% of microelectronics that Russia imports come from China.
