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The United States on Friday imposed the most sweeping sanctions against Russia since its invasion of Ukraine two years ago, targeting Russia’s financial sector and military-industrial complex as part of a broader effort to undermine the Kremlin’s war machine. .
The massive sanctions come as the war enters its third year and the Biden administration blames Russian President Vladimir V. Putin for the death of opposition leader Alexei A. Navalny. It took place exactly one week later. As Congress struggles to reach an agreement on additional aid to Ukraine, the United States is increasingly relying on financial tools to slow Russia’s ability to replenish its military supplies and put pressure on its economy.
President Biden, who announced the sanctions on Friday, renewed his call for Congress to provide more funding to Ukraine before it is too late.
“Our failure to support Ukraine at this critical time will be remembered,” he said in a statement.
The president added that the sanctions will further limit Russia’s energy revenues and crack down on Russia’s sanctions-evasion activities across multiple continents.
“We will continue to do so unless President Putin pays the price of his own death and destruction,” Biden said. “And the costs for the United States and our NATO allies and partners in Europe and around the world will increase.”
The new sanctions include measures developed by the Treasury, State, and Commerce departments and target more than 500 individuals and entities involved in Russia’s invasion of Ukraine.
The Biden administration has also imposed sanctions on three Russian government officials involved in Navalny’s death.
Treasury Secretary Janet L. Yellen said, “Russia’s economy and military industrial base are in clear decline, in part because of the actions we have taken, along with our partners and allies around the world, to support Ukraine’s courageous defense.” “It’s showing signs of weakness.” statement. “President Putin is mortgaging the present and future of the Russian people for his own purpose of conquering Ukraine.”
Over the past two years, the United States has worked with its G7 allies to limit the price at which Russian oil can be sold on global markets, freeze hundreds of billions of dollars in Russian central bank assets, and enact trade restrictions. This is an attempt to block the flow of technology and equipment used by Russia to supply its military.
The measures announced Friday aim to go further, focusing on key cogs in Russia’s financial system, digging deeper into military supply chains, and going after enablers in other countries such as China and the United Arab Emirates.
Despite extensive sanctions imposed on Russia by Western allies, Russia’s economy has proven resilient. China, India and Brazil are buying record amounts of Russian oil, war spending is stimulating the Russian economy, and the International Monetary Fund said last month that the Russian economy was growing faster than expected. Announced.
It is unclear whether the sanctions announced Friday will result in a significant change in the trajectory of the war.
“While these sanctions have considerable symbolic meaning, especially given that military aid to Ukraine remains in jeopardy in Congress, they are unlikely to weigh on Russia’s economic performance or threaten President Putin’s military It may have limited practical value in things like deterring invasions,” said Eswar S. Prasad, professor of trade studies. He majored in economics at Cornell University.
The sanctions targeted Russia’s two largest companies by sales: SUEK and Mechel. SUEK’s transport and logistics operations serve the Russian military, and Meshell is a leading manufacturer of special steels. The measures also target Russia’s financial sector, including sanctions against the National Payment Card System Corporation, which operates Russia’s state payment system.
In its bid to slow Russia’s war effort, the Biden administration has not limited itself to major defense companies. The sanctions imposed on Friday also target manufacturers of lubricants, robotics, ball bearings and batteries used by the Russian military.
Daniel Tannebaum, a partner at Oliver Wyman who advises on sanctions against multinational companies, said the new measures could have been much stronger.
“Most of the designees are Russian citizens or residents, so the impact of sanctions is likely to be limited,” said Tannebaum, who is also a senior fellow at the Atlantic Council. “Russia still receives support from third countries, and while some of these third-party actors have been designated, these are not corporate names that people know, so they act as a limited deterrent.”
The United States was not alone in ratcheting up economic pressure on Russia this week. The European Union has announced its 13th round of sanctions against Russia, banning approximately 200 people and entities that have helped Russia acquire weapons from traveling or doing business within the region. Britain also announced sanctions against companies linked to Russia’s ammunition supply chain and six Russian nationals suspected of running the Arctic prison where Mr. Navalny died.
The United States and Europe are discussing taking more aggressive steps, such as seizing $300 billion in frozen Russian central bank assets and giving the funds to Ukraine to finance its war and reconstruction efforts.
Deputy Treasury Secretary Wally Adeyemo told reporters Thursday that the G7 is still debating the most legally viable way to use Russian funds to benefit Ukraine.
“Basically, we are not going to do anything with Russian sovereign assets until we act as a coalition government,” Adeyemo said, pointing to several options under consideration.
Adeyemo said new sanctions would “throw sand in the gears” of the Russian military, but the most important way to help Ukraine win the war is to provide more funding to continue fighting. He claimed that it was.
“Sanctions alone can only slow Russia down,” he said. “We need financial support for Ukraine and the weapons it needs to be on the battlefield to defend itself.”
Without that support, sanctions will remain the primary weapon at the United States’ disposal to punish Russia.
On Friday, Mr. Biden told governors at the White House that the sanctions were aimed at putting more pressure on Mr. Putin in response to what the president described as a “brutal war of conquest.”
Biden said the sanctions were in place after Navalny’s death and also noted that he met with Navalny’s widow and daughter during a visit to California on Thursday.
“I assured them that President Putin’s legacy will continue to live on around the world, and that we in the United States will continue to ensure that President Putin pays the price for his aggression abroad and repression at home.” said.
katie rogers Contributed to the report.
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