The White House announced tougher sanctions on Friday that will hit Russia’s economy hard because of the invasion of Ukraine that began just a year ago and restrict Moscow’s access to sensitive technologies such as semiconductors.
The sanctions, which target sectors such as banking and the defense industry, will affect “more than 200 individuals and organizations, including Russian and third-country actors across Europe, Asia and the Middle East, who support Russia’s war effort,” the White House said.
The new sanctions — which come on top of several previous measures imposed over the past 12 months — target “a dozen Russian financial institutions, in coordination with allies and partners, as well as Russian officials and deputy agencies, operating illegally in Ukraine.” .
The White House has indicated that it is targeting Russia’s defense and high-tech sectors, as well as implementing measures aimed at destroying attempts to circumvent sanctions already in place.
The US Commerce Department will also impose export controls on nearly 90 Russian and third-country companies, including those in China, “for engaging in sanctions-busting and substitution activities in support of the industry. Russian defense,” the White House said.
Target companies will be prohibited from “purchasing items such as semiconductors, whether manufactured in the United States or manufactured overseas using certain American technology or software.”
The Russian metals and mining sector is also in the crosshairs of economic sanctions.
“Today’s action will result in increased tariffs on more than 100 Russian metals, minerals and chemicals worth approximately $2.8 billion to Russia. It will also significantly increase the cost of aluminum smelted or cast in Russia to enter the US market,” the White House continued.
This measure will “counter the damage” done to American producers by the Russian invasion, the White House stressed, adding that these latest measures against Russia were decided “in coordination with G7 partners and allies”.
The G7 countries, set to hold a virtual summit on Friday to mark the first anniversary of Russia’s invasion of Ukraine, will announce the creation of a new body known as the Enforcement Coordination Mechanism to block attempts to circumvent existing sanctions.
According to the White House, the United States will chair the body for the first year.