U.S. Sanctions Hundreds Of Targets In Effort To Cripple Kremlin's Military Production

The United States on August 23 added nearly 400 individuals and entities in and outside of Russia to its sanctions list as part of the U.S. effort to disrupt Russia's international supply chains, metal procurement, and financial services that support its war effort in Ukraine.

The U.S. Treasury Department said the move was building on sanctions already imposed on Russia in response to its full-scale war in Ukraine and were aimed at distinct networks, individuals, and entities whose products and services enable Russia to sustain the war and evade sanctions.

"Russia has turned its economy into a tool in service of the Kremlin’s military industrial complex," Deputy Secretary of the Treasury Wally Adeyemo said in a news release. The treasury's "actions today continue to implement the commitments made by President [Joe] Biden and his G7 counterparts to disrupt Russia's military-industrial base supply chains and payment channels."

The sanctions target numerous transnational networks, the department said. Among them are those allegedly involved in procuring ammunition and military materiel for Russia, facilitating sanctions evasion for Russian oligarchs through offshore trust and corporate formation services, laundering gold for a sanctioned Russian gold company, and supporting Russia's military-industrial base by procuring sensitive and critical items such as advanced machinery tools and electronic components.

The list of companies designated for new sanctions includes 60 Russian-based defense and technology firms "critical for the sustainment and development of Russia's defense industry," it added.

Adeyemo added that companies, financial institutions, and governments around the world "need to ensure they are not supporting Russia’s military-industrial supply chains."

The department warned that foreign regulators and financial institutions "should be cautious" about any dealings with overseas branches or subsidiaries of Russian financial institutions and noted it is is aware of Russian efforts "to facilitate sanctions evasion by opening new overseas branches and subsidiaries of Russian financial institutions."

The sweeping action targets networks, individuals, and entities across 16 jurisdictions, including in China, Switzerland, Turkey, and the United Arab Emirates.

SEE ALSO: China In Eurasia Briefing: Russian And Chinese Banks Feel The Bite Of New U.S. Sanctions

The measures against companies in China alone are aimed at 190 targets, according to a State Department fact sheet outlining its sanctions.

Washington has repeatedly warned Beijing over its support for Russia's defense industrial base and has already issued hundreds of sanctions aimed at restricting Moscow's ability to exploit certain technologies for military purposes.

The sanctions, which freeze any assets held by those targeted in U.S. jurisdiction and bar them from dealings with people in the United States, were announced parallel to an announcement by the U.S. Commerce Department saying it was taking "aggressive action" to further restrict the supply of items made in the United States to both Russia and Belarus, due to "the Kremlin's illegal war on Ukraine."

In addition, the U.S. State Department said it was targeting entities and individuals involved in Russia’s future energy, metals, and mining production as well as sanctions evasion and Russia’s military-industrial base. It also is targeting subsidiaries of Russia's state atomic energy corporation Rosatom and "malign actors involved in the attempted, forcible 're-education' of Ukraine's children."

The U.S. government also added 123 entities to its U.S. export control list known as the Entity List that forces suppliers to obtain licenses before shipping to targeted companies. The companies -- 63 Russian and 42 Chinese as well as 18 from other countries -- were targeted for a host of reasons from sending U.S. electronics to Russian military-related parties to producing thousands of Shahed-136 drones for Russia to use in Ukraine.

Ukrainian President Volodymyr Zelenskiy thanked the United States for the "additional strong sanctions" saying on X they would further weaken Russia's ability to "wage an aggressive war against Ukraine."

"Pressure on the aggressor must be maintained and increased constantly as long as Russia continues its aggression," Zelenskiy added.