BACKGROUNDER: US, G7 Partners Impose High Costs for Putin’s War on Ukraine

President Biden and G7 leaders meet with President Zelenskyy to continue our efforts to support Ukraine and strengthen our unprecedented sanctions and export controls

Today, President Biden and G7 leaders met with President Zelenskyy of Ukraine to reinforce our shared commitment to strengthening Ukraine’s position on the battlefield and at the negotiating table.

Our unprecedented sanctions are already weighing heavily on the Russian economy and our export controls have strangled Russia’s access to critical technologies and supply chains it needs to support its military ambitions. Putin’s war is set to wipe out the last 15 years of economic gains in Russia. Due to our export controls, Russia is struggling to replenish its weapons and military equipment. Russia’s two main tank factories – Uralvagonzavod Corporation and Chelyabinsk Tractor Plant – stopped work due to lack of foreign components. Nearly 1,000 private sector companies have left Russia and reports indicate that more than 200,000 Russians, many of them highly skilled, have fled the country. All of these costs will accumulate and intensify over time.

Putin failed in his original military goal of dominating Ukraine – but he succeeded in making Russia a global pariah. Today, the United States, the European Union, and the G7 have committed to increasing these costs by collectively taking additional action, consistent with each partner’s respective authorities and legal processes.

Targeting state-controlled media in Russia that bolsters Putin’s war. The United States will sanction three of the most watched directly or indirectly state-controlled Russian television channels in Russia – Joint Stock Company Channel One Russia, Television Station Russia-1 and Joint Stock Company NTV Broadcasting Company. The three stations have been among the largest recipients of foreign revenue, which trickles down to Russian state revenue.

Ban services that help fund Putin’s war and avoid sanctions. The United States will prohibit U.S. persons from providing accounting, trust, and business formation and management consulting services to anyone in the Russian Federation. These services are essential for Russian corporations and elites who create wealth, thereby generating revenue for Putin’s war machine, and attempt to hide that wealth and evade sanctions. This measure builds on previous bans aimed at restricting the export of goods related to the aerospace, marine, electronics, technology, defense and related materials sectors of the Russian economy. .

Cut Russian oil imports and reduce dependence on Russian energy. The United States has already banned the import of Russian oil, gas and coal. Today, the entire G7 has pledged to phase out or ban the import of Russian oil. This will hit the main artery of Putin’s economy hard and deprive him of the revenue he needs to fund his war. The G7 also pledged to work together to ensure a stable global energy supply, while accelerating our efforts to reduce dependence on fossil fuels.

Imposing new export controls and sanctions to degrade Russia’s war efforts. The United States will issue a new rule that imposes additional restrictions on Russia’s industrial sector, including a wide range of inputs and products, including wood products, industrial engines, boilers, motors, fans and ventilation equipment, bulldozers and many other items for industrial use. and commercial applications. These new controls will further limit Russia’s access to items and revenue that could support its military capabilities. The United States also sanctioned the limited liability company Promtekhnologiya, which produces rifles and other weapons that have been used in military operations in Ukraine; seven shipping companies, which own or operate 69 ships; and a marine towing company. The Nuclear Regulatory Commission will also suspend general licenses for exports of source materials, special nuclear materials, by-products and deuterium to Russia.

Imposing sanctions on Russian elites and their family members and visa restrictions on Russian and Belarusian officials who undermine Ukraine’s sovereignty, territorial integrity or political independence. The United States has imposed approximately 2,600 visa restrictions on Russian and Belarusian officials in response to its continued efforts to undermine Ukraine’s sovereignty, territorial integrity, or political independence. In addition, the United States has issued a new visa restriction policy that applies to Russian Federation military officials and alleged Russian-backed or Russian-installed authorities who are suspected of involvement in human rights violations, violations of international humanitarian law or public corruption in Ukraine. The United States also sanctioned eight executives of Sberbank – Russia’s largest financial institution and of unique importance to the Russian economy, holding around a third of all banking assets in Russia; twenty-seven executives from Gazprombank – a major Russian bank facilitating the business of Russian company Gazprom, one of the world’s largest exporters of natural gas; and Moscow Industrial Bank and its ten subsidiaries.

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