The U.S. Department of the Treasury is stepping up its sanctions with 130 new Russian evasion and military-industrial targets in an effort to disrupt producers, exporters, and importers that are aiding Russia's technology and equipment acquisition from other nations.
A press release by the U.S. Department of the Treasury revealed that these increased sanctions are also aimed at Russia's domestic industrial base. With nearly 100 sanctions issued by the U.S. Department of State, the focus is on reducing Russia's future energy production and revenue, including their metal sector and defense procurement, as well as imposing penalties on those supporting the Russian government's war efforts. Secretary of the Treasury Janet L. Yellen expressed her resolve in holding accountable third-party individuals and entities supplying Russia with military resupplies for its war against Ukraine. "Russia is dependent on willing third-country individuals and entities to resupply its military and perpetuate its heinous war against Ukraine and we will not hesitate in holding them accountable," said Yellen.
Due to a lack in domestic production capabilities for necessary technology, equipment, and materials for its military-industrial complex, Russia has had to depend on third-party supplies for necessary goods. Countries like United Arab Emirates (UAE), Turkiye, and People’s Republic of China have emerged as supply chain hubs for exporting needed technology to Russia. Despite ongoing negotiations with these countries’ governments regarding potential sanctions enforcement, entities within these nations continue to deliver high-priority goods to Russia.
Russia’s aggression towards Ukraine has resulted in shifts within its own domestic industrial base. The Office of Foreign Assets Control (OFAC) is targeting firms based in Russia involved in producing, importing, distributing, repairing industrial machinery, machine tools spare parts, additive manufacturing equipment among others. The OFAC has also targeted seven banks based out of Russia along with an executive of one such bank and a financial infrastructure entity. Furthermore, these sanctions are directed towards Russia-based entities and individuals who finance, research, develop, or import advanced technology including the likes of Sistema – a finance and technology conglomerate.
