U.S. slaps new sanctions vs Russia

The United States has slapped new sanctions against Russia as its invasion of Ukraine turned two years old and the country was largely unscathed by earlier trade restrictions and assets freeze by the West.

The fresh sanctions target 500 entities but excludes seizing Russian assets to fund Ukraine’s military. One is Mir credit card system set up by Russia to avoid reliance on US-based networks.

The US Treasury Department also said it was targeting investment funds and regional banks to hit “Russia’s core financial infrastructure.”

Key businesses targeted include Russian transportation logistics company JSC SUEK, said to serve the Russian defense ministry, and specialty steel producer Mechel.

Others were in 3D printing, lubricants, robotics and automation. The actions also impact entities and individuals in countries including China and the United Arab Emirates.

“We are also imposing new export restrictions on nearly 100 entities for providing backdoor support for Russia’s war machine,” US President Joe Biden said Friday.

In announcing the latest measures, Biden made a fresh plea for Congress to fund new military aid for Ukraine.

Republican House Speaker Mike Johnson has refused to bring the aid to a vote with his ally, presidential hopeful Donald Trump, criticizing support for Kyiv.

“History is watching, the clock is ticking, brave Ukrainian soldiers and civilians are dying,” Biden said Friday, urging for the bill to be passed.

Russian economy grew

The US and its allies have imposed a slew of measures against Russia since the start of the war, including blocking financial assets, restricting high-tech exports and setting an official cap on the sale price of Russia’s oil exports.

Despite US-led pressure, the Russian economy grew by more than three percent last year and is expected to grow again this year, a rate better than some Western nations backing Ukraine.

Russia has adapted and turned to trade with non-Western partners, especially China, even as US officials note that Moscow has less discretionary funding for non-military purposes.

European partners have balked at US-led calls to seize Russian assets and hand the potentially billions in funding to Ukraine, fearing this would lead other governments with questionable reputations to desert Western banks.

A coalition involving the Group of Seven leading economies, the European Union and Australia earlier announced plans to tighten compliance with the $60 per barrel cap on sales of Russian crude, which has been widely circumvented.

To cut Moscow’s petroleum revenues and enforce the price ceiling, the Treasury blacklisted 14 Russian oil tankers Friday, while imposing sanctions on state-run shipping company Sovcomflot.

A senior Treasury official told reporters the Kremlin has sought to evade the cap by investing in a “shadow fleet” operating outside coalition financial services — and that Washington is seeking to raise the cost of using this fleet.

WITH AFP