US announces new sanctions on Russian banks, defence sector, blocks semiconductor access

The US announced a new set of sanctions on Moscow on Friday marking the one-year anniversary of the Ukraine war to impose further economic costs on Russia. In coordination with G7 partners and allies, the US Departments of the Treasury and State will implement sweeping sanctions against key revenue-generating sectors like defenceand banks, besides blocking access to semiconductors.

As per a White House press release, the new sanctionswill result in sanctions being imposed on over 200 individuals and entities, including both Russian and third-country actors across Europe, Asia, and the Middle East "that are supporting Russia’s war effort."

The White House said in a statement that it was joining with partners in the Group of Seven countries to impose new financial penalties designed to stop the funding of Moscow’s war machine.Themeasures will include sanctions on 200 people and companies, restricting exports to Russia and increasing tariffs on products from the country.

US President Joe Biden said ina tweet on Friday, “From Kherson to Kharkiv — Ukrainian fighters have reclaimed their land. And in more than half of the territory Russia held last year, the Ukrainian flag proudly waves once more.”

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The target will be a dozen Russian financial institutions, as well as Russian officials and proxy authorities "illegitimately" operating in Ukraine.Sanctions were also announced on "additional actors tied to Russia’s defence and technology industry, including those responsible for backfilling Russian stocks of sanctioned items or enabling Russian sanctions evasion."

"It also includes the targeting of Russia’s future energy capabilities in a manner that does not impact current production to minimize market disruption. The United States also is expanding its sanctions authorities to Russia’s metals and mining sector, tailored to minimize market disruption," the press release added.

Moreover, to restrict exports to Russia, the US Department of Commerce will take several export control actions, listing nearly 90 Russian and third-country companies, including in China among other countries, for engaging in activities in support of Russia’s defence sector.

These listings will prohibit the targeted companies from purchasing items, such as semiconductors, whether made in the US or with certain US technology or software abroad. "Commerce will also take action alongside G7 partners and allies to align measures on industrial machinery, luxury goods, and other items, as well as issue new restrictions to prevent components found in Iranian drones from making their way onto the battlefield in Ukraine," the statement read.

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Another sanction includes increasing tariffs on Russian products. This will raise tariffs on certain Russian products imported to the United States, building on previous efforts to strip Russia of its international trade privileges.

These measures, the White House said, are designed to target key Russian commodities generating revenue for the Kremlin while reducing US reliance on Russia.

"These measures are carefully calibrated to impose costs on Russia while minimising costs to US consumers. Today’s action will result in increased tariffs on more than 100 Russian metals, minerals, and chemical products worth approximately $2.8 billion to Russia."

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It will also significantly increase costs for the aluminium that was smelted or cast in Russia to enter the US market "in order to counter harm to the domestic aluminium industry, which is being squeezed by energy costs as a result of Russia’s invasion of Ukraine."

(With inputs from agencies)

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