Russian Supply Chains Next In Line For Sanctions – U.S. Treasury’s Adeyemo

Russian Supply Chains Next In Line For Sanctions – U.S. Treasury’s Adeyemo

The United States and its allies plan new sanctions on more sectors of Russia’s economy that are critical to sustaining its invasion of Ukraine, including military supply chains, Deputy U.S. Treasury Secretary Wally Adeyemo said on Tuesday.

Adeyemo, speaking in London on a European trip to consult with allies on strengthening and enforcing sanctions to punish Russia, said the broadening of those efforts was aimed at undermining “the Kremlin’s ability to operate its war machine.”

The Treasury last Thursday slapped new sanctions on dozens of Russian defense companies, from makers of ammunition, missiles and helicopters used in the Ukraine invasion to radar and imaging systems firms. The sanctions freeze any assets they may have under U.S. jurisdiction and prohibit American entities from any transactions with them.

“In addition to sanctioning companies in sectors that enable the Kremlin’s malign activities, we also plan to take actions to disrupt their critical supply chains,” Adeyemo told an event at the think tank Chatham House.

“Our goal is to use an integrated approach that includes export controls which will bite over time and sanctions that will bite immediately,” he said, adding they would also target alternative military suppliers used by Russia.

Russian President Vladimir Putin sent his troops into Ukraine on what he calls a “special military operation” to demilitarize and “denazify” Ukraine.

Since the invasion began on Feb. 24, western allies have frozen Russia’s central bank’s foreign currency assets, banned key Russian banks and wealthy elites from hard currency transactions and put restrictions on exports of advanced semiconductors and other technology.