by The United States on Friday unleashed its most extensive sanctions package against Russia since the invasion of Ukraine two years ago, targeting Russia’s financial sector and military-industrial complex in a broad effort to degrade the Kremlin’s war machine.
The sweeping sanctions come as the war enters its third year, and exactly one week after the death of opposition leader Aleksei A. Navalny, which the Biden administration blames on President Vladimir V. Putin of Russia. As Congress struggles to reach a deal to provide more aid to Ukraine, the United States has become increasingly reliant on financial tools to curb Russia’s ability to replenish its military supplies and put pressure on its economy.
In announcing the sanctions on Friday, President Biden reiterated his calls for Congress to provide more funding to Ukraine before it is too late.
“The failure to support Ukraine at this critical moment will not be forgotten,” he said in a statement.
The president added that the sanctions would further restrict Russia’s energy revenues and crack down on its sanctions evasion efforts on multiple continents.
“If Putin does not pay the price for his death and destruction, he will move on,” Biden said. “And the costs for the United States – along with our NATO allies and partners in Europe and around the world – will increase.”
The new sanctions include measures created by the Treasury Department, the State Department and the Department of Commerce, and target more than 500 individuals and entities that have been associated with Russia’s aggression toward Ukraine.
The Biden administration is also imposing sanctions on three Russian government officials who were linked to Navalny’s death.
“Russia’s economy and military-industrial base are showing clear signs of weakness, in part because of the actions we, along with our partners and allies around the world, have taken to support Ukraine’s courageous defense,” he said. Treasury Secretary Janet L. Yellen in a statement. statement. “Putin has mortgaged the present and future of the Russian people for his own goals of subjugating Ukraine.”
Over the past two years, the United States has worked with Group of 7 allies to limit the price at which Russian oil can be sold on global markets, frozen hundreds of billions of dollars in Russian central bank assets, and has enacted trade restrictions. to try to block the flow of technology and equipment that Russia uses to supply its army.
The measures announced Friday attempt to go further, targeting key cogs in Russia’s financial system, delving deeper into its military supply chain and going after enablers in other countries such as China and the United Arab Emirates.
The sanctions target two of Russia’s largest companies by revenue, SUEK and Mechel. SUEK’s transport and logistics operation serves the Russian military and Mechel is a major producer of specialty steels. The measures also target Russia’s financial sector, with sanctions on the National Payment Card System joint-stock company, which operates the Russian national payments system.
In seeking to curb Russia’s war effort, the Biden administration went beyond its core defense companies. The sanctions imposed on Friday also affect manufacturers of lubricants, robotics, ball bearings and batteries used by the Russian military.
The United States was not the only one increasing economic pressure on Russia this week. The European Union unveiled its 13th tranche of sanctions on Russia, banning nearly 200 people and entities that have been helping Russia acquire weapons from traveling or doing business within the bloc. Britain also announced sanctions on companies linked to Russia’s munitions supply chain, as well as six Russians accused of running the Arctic prison where Navalny died.
Despite the breadth of sanctions Western allies have imposed on Russia, its economy has proven resilient. China, India and Brazil have been buying Russian oil in record amounts, and spending on the war effort has stimulated the Russian economy, which the International Monetary Fund said last month was growing faster than expected.
It is unclear whether the sanctions announced Friday will make a significant difference to the trajectory of the war.
“These sanctions have considerable symbolic meaning, but could prove of limited practical value in harming the performance of the Russian economy or deterring Putin’s military aggression, particularly given that military aid to Ukraine remains at risk in Congress,” Eswar said. S. Prasad, Professor of Commerce. and economics at Cornell University.
The United States and Europe are debating more aggressive measures, such as seizing $300 billion of frozen assets from Russia’s central bank and giving the funds to Ukraine to finance its war and reconstruction efforts.
Wally Adeyemo, deputy secretary of the Treasury, told reporters on Thursday that the Group of 7 was still discussing the most legally viable way to use Russia’s money to benefit Ukraine.
“Basically, we are not going to do anything regarding Russian sovereign assets until we move forward as a coalition,” Adeyemo said, pointing to several options being considered.
While Adeyemo said the new sanctions would “throw sand in the wheels” of the Russian military, he maintained that the most important way to help Ukraine win the war was by providing it with more funds to continue the fight.
“Sanctions alone can only stop Russia,” he said. “We need financial support for Ukraine and the weapons it needs to be able to be on the battlefield to defend itself.”
