Mon. Jul 22nd, 2024

The US wants to expand secondary sanctions against the Russian Federation four times – FT

Natasha Kumar By Natasha Kumar Jun12,2024

US wants to quadruple secondary sanctions against Russia - FT

The US Treasury Department plans to significantly expand secondary sanctions against Russia this week, looking at any foreign financial institution that transacts with a Russian company, which has been sanctioned as working directly with the Kremlin's military industry.

According to Ukrinform, this was reported by the Financial Times.

This step will expand the executive order of the head of the White House, Joe Biden, which in December gave the Ministry of Finance the authority to introduce additional sanctions against foreign financial institutions, if were found to have acted on behalf of any of approximately 1,200 companies that the US government believed were part of Russia's defense sector.

After the changes were implemented this week, the number of such companies will increase to more than 4,500 and will include almost all Russian companies that were already under sanctions, even if it was for reasons other than direct support of the Russian Federation's war against Ukraine.

Among them will be banks such as Sberbank and VTB, the country's largest lenders.

It is noted that after Biden's December decree, the flow of war-related imports to Russia decreased in early 2024, as the financing of cross-border trade in these goods became riskier even for banks that have no ties to the United States.

"Secondary sanctions are intended to expand the capabilities of the United States to prevent their circumvention by entities that have no legal ties to the United States. This means that the US can effectively apply its sanctions to people who are not otherwise subject to US law,&rdash; said Emily Kilcrease, a trade and sanctions expert at the Center for a New American Security think tank.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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