The United States has imposed severe sanctions on numerous Russian-based companies and firms, accusing them of providing goods and services that enable Russia’s war effort and aid its ability to evade sanctions. The sanctions aim to disrupt Russia’s military supply chains and drive up costs for its war machine. The Treasury Department sanctioned 60 Russian-based technology and defense companies, including three financial tech firms, as well as firms that supply Russian-based Promtekh, a wholesale distributor of transportation equipment. The sanctions also targeted individuals and firms involved in Russia’s energy, metals, and mining exports, drone production, and subsidiaries of state-owned nuclear energy corporation Rosatom.
Individuals involved in the kidnapping of Ukrainian children and forcing them to identify as Russian were also sanctioned. The announcement comes as Ukrainian forces push into Russia’s Kursk region and as the US and European allies seek to isolate Russia economically in response to its aggression. The sanctions are a significant escalation of the US campaign to economically isolate Russia, and come as the US has passed an aid package for Ukraine allowing it to seize Russian state assets located in the US and use them for the benefit of Kyiv.
Sweeping Sanctions Aim to Disrupt Russia’s War Effort Funding (Image via Getty)
The package also provides for a 50-billion-dollar loan to aid Ukraine in its fight for survival, secured by the interest earned on profits from Russia’s 300-billion-dollars in frozen central bank assets, mostly in Europe. Russia has been accused of using its economy as a tool in service of its military-industrial complex, and companies, financial institutions, and governments around the world are being called upon to ensure they are not supporting Russia’s military-industrial supply chains.
Treasury Deputy Secretary Wally Adeyemo stated, “Russia has turned its economy into a tool in service of the Kremlin’s military-industrial complex. Companies, financial institutions, and governments around the world need to ensure they are not supporting Russia’s military-industrial supply chains.” The sanctions are the latest development in a long-running campaign to economically isolate Russia in response to its invasion of Ukraine, and mark a significant escalation in the US efforts to punish Russia for its aggression. The US has imposed thousands of sanctions on Russian firms and suppliers since Russia’s invasion of Ukraine in February 2022. The sanctions are a clear message to Russia that its aggression will not be tolerated, and that the international community will not support its war efforts.
