US fires fresh barrage of sanctions at Russia ahead of G7 opening
Just before G7 leaders opened a summit in Italy that is largely focused on upping pressure on Russia, the United States has rolled out a new set of expanded sanctions against 300 individuals and entities in China, Turkey, the United Arab Emirates (‘UAE’) and South Africa, accusing them of helping Moscow’s war effort in Ukraine.
The US Treasury Department said in a statement, 12 June, it was ‘issuing sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine.’
Treasury explained that the new ‘actions ratchet up the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy; restrict the ability of Russian military-industrial base to take advantage of certain U.S. software and information technology (IT) services; and, together with the Department of State, target more than 300 individuals and entities both in Russia and outside its borders – including in Asia, the Middle East, Europe, Africa, Central Asia, and the Caribbean – whose products and services enable Russia to sustain its war effort and evade sanctions.’
‘Treasury is targeting the architecture of Russia’s financial system, which has been reoriented to facilitate investment into its defense industry and acquisition of goods needed to further its aggression against Ukraine,’ it added.
Meanwhile, the State Department aimed sanctions at more than 100 ‘entities and individuals engaged in the development of Russia’s future energy, metals, and mining production and export capacity; sanctions evasion and circumvention; and furthering Russia’s ability to wage its war against Ukraine.’
US Treasury Secretary Janet Yellen said the measures are targeted at closing off the few avenues left to Moscow to obtain materials and equipment needed for its war on Ukraine.
‘We are increasing the risk for financial institutions dealing with Russia’s war economy and eliminating paths for evasion, and diminishing Russia’s ability to benefit from access to foreign technology, equipment, software, and IT services,’ she said.
Separately, the US Department of Commerce announced ‘additional export restrictions to counter Russian aggression,’ adding eight addresses in Hong Kong to its Entity List and warning that any company that uses the addresses ‘will be faced with restrictions on their ability to engage in transactions subject to the Export Administration Regulations (EAR).’
https://ofac.treasury.gov/recent-actions/20240612
https://home.treasury.gov/news/press-releases/jy2404
https://www.state.gov/taking-additional-measures-to-degrade-russias-wartime-economy
