Representatives of the administration of the US President said on August 22, 2022, that the US is trying to ensure the effectiveness of sanctions against Russia imposed over its invasion of Ukraine by closing loopholes and persuading other countries to support the restrictions.
Source: Representatives of Joe’s Biden administration
The purpose of this second phase is to close the loopholes that allow the Kremlin to obtain the revenue and import goods necessary to continue the war.
“That means targeting foreign banks and cryptocurrency platforms that help Russia maintain access to international currencies, taking over bank accounts and corporate assets of blacklisted oligarchs, and penalizing foreign companies caught exporting controlled goods to the country.”
The US will also try to persuade countries such as China and India, which have not joined the sanctions, to reduce financial transactions and export goods to Russia.
In late February, the US and its allies launched a large-scale sanctions campaign against Russia. But Moscow continues to sell huge volumes of oil and natural gas, which are mostly exempt from sanctions. At the expense of this money from Western countries dependent on the export of Russian energy resources, the Kremlin actually finances its military machine and economy. Other data suggest that while many countries are complying with the sanctions, Russia continues to trade with other states.
“All that has enabled Moscow to continue prosecuting the war and keep its economy afloat despite the sanctions campaign, analysts say, and some view stepped-up enforcement as worthy but with limited deterrent effect.”
US officials point out that they did not expect that their strategy of economic restrictions would achieve their goals instantly, but the impact of the sanctions would gradually increase.
The US is uncovering groups of people and companies that help Russia circumvent sanctions.
“Intelligence officers at the Treasury Department’s Office of Foreign Assets Control and at the Commerce Department’s Bureau of Industry and Security are pursuing companies that continue to supply Russia with financial services and goods such as semiconductors and weapons that are prohibited by the new export controls.”
