The United States of America has warned states that trade with Russia of the risk of being subject to secondary sanctions if they allow Russian banks to open local branches to finance the Kremlin's military-industrial complex. This was reported by the Financial Times, according to UNN.
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These actions are aimed at closing possible ways for Russia to circumvent sanctions, including unclear payment schemes for dual-use goods that can be used to manufacture weapons.
U.S. Treasury Secretary Wally Adeyemo said that Washington is ready to pursue countries that allow Russian banks to open branches in their jurisdictions to avoid sanctions.
“We will not only go after the branches they open, but also other organizations and companies in your jurisdiction that cooperate with them,” Adeyemo emphasized.
The publication also recalls that in December 2023, the administration of US President Joe Biden issued an executive order warning of the threat of secondary sanctions for foreign financial institutions if they carry out or facilitate transactions related to the Russian military-industrial complex.