More Sanctions on Russia Coming

More Sanctions on Russia Coming

The United States and its allies are announcing additional sanctions on Russia this week to “seek justice for the war crimes and crimes against humanity continuing to be committed by the Russians,” President Biden said yesterday.

The President spoke in Warsaw, where he is meeting with European allies following a surprise visit to Ukraine on Monday.

The new tranche of sanctions – timed to coincide with the one-year anniversary of Russia’s invasion of Ukraine – will include defense and related materials targets, technology firms and alleged sanctions-evasions networks.

Treasury Deputy Secretary Wally Adeyemo previewed the sanctions in remarks to the Council on Foreign Relations yesterday.

“Going forward, our export controls and sanctions will continue to prevent Russia from accessing the equipment needed to make up for these losses, and our sanctions will make it harder for the Kremlin to use the remaining resources Russia can access to pay for the weapons they need,”
Mr. Adeyemo said.

The Administration is determined to counter efforts to evade the sanctions. That effort will focus on three elements, according to Mr. Adeyemo.

Countering Sanctions Evasion
“The first, consistent with our overall approach, will be to work closely with our allies and

partners, especially in the G7 and EU. We will use all of our economic tools to give countries, companies, and individuals a choice: to do business with a coalition representing half of the global economy, or to provide material support to Russia. We will use sanctions, export controls, and other tools to prevent the Kremlin from using the money they have to purchase the weapons and goods they need to fight this war of choice. To strengthen this effort, we will improve information sharing and coordination among our allies, as well as share additional information with firms in our countries to garner their assistance in preventing countries, companies, and individuals from providing material support to Russia.”

The second element is to identify and shut down the specific channels through which Russia attempts to equip and fund its military, Mr. Adeyemo said. “Our counter-evasion efforts will deny Russia access to the dual-use goods being used for the war and cut off these repurposed manufacturing facilities from the inputs needed to fill Russia’s production gaps.”

The final element will be to put pressure on the companies and jurisdictions that are known to be allowing or facilitating evasion. Russia’s invasion of Ukraine is unconscionable, he continued.

“The cost of doing business with Russia in violation of our policies is a steep one, and companies and financial institutions should not wait for their governments to make the decision for them,” he said.

“Put simply, we are making the Kremlin’s choice – between funding its illegitimate war and propping up its economy – harder each day.

Mr. Adeyemo warned Moscow against looking to China to meet its needs. “Looking to China is not a solution to Russia’s challenges,” he said. “While we are concerned about Russia’s deepening ties with them, Beijing cannot give the Kremlin what it does not have, because China does not produce the advanced semiconductors Russia needs. And nearly 40 percent of the less advanced microchips Russia is receiving from China are defective.”