The United States has recently unveiled a fresh wave of sanctions, targeting approximately 130 entities. These firms, which span across China, Turkey, and the United Arab Emirates, stand accused of providing Russia’s military with essential components and technology, aiding their continued conflict in Ukraine. US Treasury Secretary Jane Yellen expressed the country’s firm stance on this issue, stating that any third-party individual or entity willing to replenish Russia’s military resources for this cruel war would be held accountable.
This new set of restrictions primarily focuses on vital supply chains that have previously enabled Russia to outmanoeuvre international sanctions and export controls. The exploitation of “otherwise legitimate economic relationships” with China, Turkey, and the UAE has been identified as a loophole. It allows these entities in the three countries to supply Russia with “high-priority dual-use goods”. These can range from vehicle parts to encryption software, both of which could potentially be utilised by civilians or the military.
In a significant development, these sanctions are the first to target the production of Russia’s Lancet suicide drones, an action welcomed by Ukraine. Ukrainian soldiers have identified this drone, described as an angular grey tube with two sets of four wings, as an escalating threat on the front lines. Ukrainian President Volodymyr Zelenskyy and his chief of staff, Andriy Yermak, have supported the measures, describing them as essential and commending the increased restrictions on companies linked to Russia’s military-industrial complex.
In addition to foreign entities, these sanctions from the Treasury also target Russia’s domestic industrial base. The Treasury stated that this base had shifted from “producing goods for the Russian people to attempting to ensure that the war machine can sustain itself”. The US Department of State has also imposed 100 new sanctions on Russia’s energy, metals and mining sectors, as well as defence procurement. The Commerce Department has joined in, blacklisting 12 Russian companies and one from Uzbekistan, accused of assisting Moscow in acquiring crucial drone technology.
Since Russia’s unprovoked invasion of Ukraine in February 2022, the US, European Union, and other nations have sanctioned hundreds of Russian individuals and entities. These sanctions also extend to its economy, freezing overseas assets, limiting exports, and making business operations in Russia exceedingly difficult and costly.
Yellen highlighted that the “global sanctions coalition” had successfully restricted Russia’s access to indispensable resources for its military-industrial complex, thereby undermining the Kremlin’s ability to wage its unprovoked war. Despite these sanctions, the European Bank for Reconstruction and Development predicts a 1.5 percent growth in Russia’s economy this year, with countries like China, Turkey, and India providing Moscow with a crucial economic lifeline.
