Deputy Treasury Secretary Wally Adeyemo announced Friday that the United States will impose sanctions on more than 500 targets to commemorate the second anniversary of Russia’s invasion of Ukraine.
Adeyemo told Reuters that the move, taken in conjunction with other countries, comes as the United States seeks to hold Russia accountable for war and death, and that the move, taken in conjunction with other countries, is aimed at increasing access to Russia’s military-industrial complex and the materials it wants. It will target companies in third countries that facilitate Remarks by opposition leader Alexei Navalny.
“Tomorrow, as we lift hundreds of sanctions here in the United States alone, it is important to step back and remember that we are not alone in taking these steps,” Adeyemo said.
The package is the latest of thousands of sanctions targeting Moscow announced by the United States and its allies in response to Russia’s 2022 invasion of Ukraine, which killed tens of thousands of people and destroyed cities.
Those efforts include price caps enacted by the United States and its allies aimed at reducing Moscow’s revenues from exports of oil and petroleum products.
In an effort to reduce war funding while ensuring supplies to global markets, a coalition of G7 countries, the European Union and Australia had set a price cap on Russian oil at $60 per barrel.
This cap forced Russia to choose between selling oil to the Allies at a discount or investing in building an alternative ecosystem.
In recent months, the coalition has announced plans to strengthen compliance with price caps.
The new sanctions are the largest single penalty since the start of the war, according to the Treasury Department, and come despite doubts whether the U.S. Congress would approve additional security assistance to Kiev. This was done in an effort to maintain pressure on Russia.
President Joe Biden’s administration has used up all the money it had previously approved for Ukraine, and requests for more money have stalled in the Republican-controlled House of Representatives.
“Sanctions and export controls are aimed at slowing Russia down, making it difficult for Russia to fight the war it wants in Ukraine,” Adeyemo said.
“But ultimately, Congress needs to act to give Ukraine the resources it needs and the weapons it needs to accelerate Ukraine and give it the ability to defend itself.”
Experts warn that sanctions alone will not be enough to stop Moscow’s attacks.
“What Congress does to pass additional military aid to Ukraine will be far more important than anything else Congress can do on sanctions,” said Peter Harrell, a former National Security Council official. It will happen,” he said.
The Ministry of Finance announced in December that Russia’s economy would contract by 2.1% in 2022 due to sanctions.
Rachel Lingers, chief sanctions economist, said on the Treasury Department’s website that Russia’s economy is more than 5% smaller than previously expected.
Still, Russia’s economy is outperforming expectations, with the International Monetary Fund in January forecasting GDP growth of 2.6% in 2024 (revised up 1.5 percentage points from October’s forecast) after solid 3.0% growth in 2023. predicted.
But IMF spokeswoman Julie Kozak said Thursday that military spending is boosting arms production and government social transfers are supporting consumption, pushing inflation up even as it falls elsewhere. “It is clear that Russia is currently in a war economy,” he said.
Reuters and Agence France-Presse contributed to this report
