Biden will tighten financial sanctions against Russian proxies
Kyiv • UNN
President Biden intends to sign a new executive order to strengthen sanctions against those who financially support Russia's war, targeting proxies and intermediaries that help Russia avoid existing sanctions.
US President Joe Biden intends to strengthen sanctions against Russia. Secondary sanctions will allow for the prosecution of financial intermediaries in countries that help to circumvent sanctions. This was stated by a senior official of the Biden administration, UNN writes with citing the White House website.
President Biden is set to sign a new executive order that strengthens U.S. sanctions powers against Russia, with a focus on those who finance Russia's war,
Details
According to the the official said, the Kremlin has spent a lot of time and resources directing its intelligence services to find ways to evade sanctions and export controls. Intermediaries and front companies were created to used financial intermediaries to circumvent restrictions and obtain critical components for the war. These are goods such as semiconductors, machine tools, chemical precursors, ball bearings, and optical systems.
Over the past year, the U.S. and a global coalition have uncovered and disrupted sanctions evasion networks by sanctioning or designating hundreds of of front companies, intermediaries, and Russian companies that are taking steps to to move such parts, the official said.
This instrument will be the first to allow us to use secondary sanctions to prosecute financial institutions,
A representative of the Biden administration said that over the past two years, the U.S. has been talking to countries and banks about the importance of ensuring that they do not provide material support to the Russian economy.
He noted that over the the last two years, as part of a global coalition that accounts for more than half of the world's GDP, the United States has used economic tools to to undermine Russia's ability to supply its army and limit the Kremlin's resources to wage to wage war against Ukraine.
Our sanctions are already having a significant impact. Since February 2022, the Russian military has lost more than 13,000 pieces of equipment, including tanks, UAVs, and missile systems. It is now struggling to rebuild its arsenal due to production constraints, labor shortages, and limited access to foreign components. Our goal is to complicate each of these problems. And the decree that the President plans to sign will help us do just that,
Addendum
Russia is also facing increasingly difficult economic pressures. While the Kremlin's defense spending increased by almost 75% in the first half of 2023, its energy export revenues have fallen by almost 40% this year due to price caps imposed by the United States and our allies. States and our allies.
The White House representative emphasized that in addition to energy exports, Russia is is becoming increasingly isolated in global economic trade, while at the same time facing a brain drain. Immigration from Russia has reached a historic high. Foreign direct investment has gone into negative.
Overall, Russia's economy is 5% smaller than projected before the war, and it is significantly lags behind other oil exporting countries.
Recall
On December 18, the EU Council officially adopted the 12th packageof of economic and individual sanctions against Russia, including a a ban on the import, purchase or transfer of diamonds from Russia.
