President Joe Biden is set to unveil more than 300 new sanctions at the G7 summit in Italy, aimed at further isolating and financially weakening Russia. These measures, guided by G7 commitments to intensify pressure on Russia, represent the latest effort to limit the Kremlin's revenues and disrupt Moscow's ability to source materials for its war in Ukraine.
The sanctions target foreign financial institutions supporting Russia's war efforts, restrict Russia's access to specific US software and information technology services, and focus on over 300 individuals and entities enabling Russia to sustain its war effort and evade sanctions.
While the US and its western allies have imposed various sanctions on Russia in recent years, Russian President Vladimir Putin has boasted about Russia's resilience to international sanctions, which typically take time to have a significant impact.
Treasury Secretary Janet Yellen emphasized that the new actions aim to increase the risk for financial institutions dealing with Russia's war economy, eliminate avenues for evasion, and reduce Russia's ability to benefit from foreign technology, equipment, software, and IT services.
One key action authorizes the Treasury to impose sanctions on foreign financial institutions aiding Russia's military-industrial base, potentially targeting entities like Sberbank and VTB bank.
The sanctions also expand restrictions on the sale of semiconductors to Russia, broadening economic penalties to countries using US technologies to produce critical computer chips. This move particularly impacts China, which has been filling gaps in Russia's industrial base by circumventing existing sanctions.
Furthermore, the sanctions will address Russia's attempts to evade restrictions through complex networks that facilitate the movement of money and assets. Over 90 individuals and entities across multiple countries, including Russia, Belarus, China, and the United Arab Emirates, will be designated for engaging in such activities.
Overall, these comprehensive sanctions are designed to make it harder for Russia to access essential goods and technologies from third countries, disrupt its war economy, and impede its ability to evade international restrictions.
