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US and allies preparing new sanctions on Russian supply chains


Cargo ship Oakland crosses the Bosphorus strait towards the Marmara sea after departing from Russia’s Novorossiysk port, in Istanbul.

By Alan Rappeport


The United States is preparing new sanctions targeting the supply chains of Russia’s military industrial sector as it seeks to erode Moscow’s ability to attack Ukraine, Adewale Adeyemo, the deputy Treasury secretary, said earlier this week.


The new sanctions will be rolled out in coordination with Western allies and come amid an ongoing effort to exert pressure on the Russian economy. Russia’s central bank, major financial institutions and defense companies have already been subjected to coordinated sanctions.


“We are planning to target additional sectors that are critical to the Kremlin’s ability to operate its war machine, where a loss of access will ultimately undermine Russia’s ability to build and maintain the tools of war that rely on these inputs,” Adeyemo said during a speech at the Chatham House, an international affairs think tank in London. “In addition to sanctioning companies in sectors that enable the Kremlin’s malign activities, we also plan to take actions to disrupt their critical supply chains.”


The U.S. last week imposed sanctions on Russian defense companies such as Tactical Missiles Corporation JSC, which makes weapons systems, along with new sanctions targeting 328 members of the State Duma, the lower house of Russia’s Federal Assembly.


In addition to sanctions, the U.S. and its allies have been utilizing export controls to cut off the flow of semiconductors, aircraft components and other technologies that are crucial to Russia’s defense, maritime and aerospace industries.


Adeyemo did not elaborate on the mechanics or timing of the supply chain sanctions.


He said in his speech that multilateral coordination was key to ensuring that sanctions aimed at Russia would be effective.


“When it comes to using economic tools to advance our national security, collective action significantly increases the costs we impose on our adversaries while providing opportunities to limit the collateral impact on our allies and partners,” Adeyemo said.


The speech was delivered at the start of a six-day trip that Adeyemo is making with stops in London, Brussels, Paris and Berlin to work with allies on tightening sanctions enforcement and preventing evasion.


Despite the robust nature of the sanctions, there are already signs that Russia is mitigating them and finding ways to stabilize its currency as oil and gas sales continue.

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