US Expands Sanctions on Russia, Targets Foreign Banks Aiding Military Efforts

The US has expanded its sanctions on Russia to include foreign banks believed to be assisting Russia’s military actions in Ukraine.

Ahead of President Biden’s meeting with Group of Seven (G7) Leaders in Italy this week, the US Department of the Treasury is unveiling new measures aligned with G7 pledges to put pressure on Russia for its ongoing brutal and unjustified war on Ukraine.

In cooperation with the US State Department, sanctions will be imposed against more than 300 individuals and legal entities both in Russia and abroad, whose products and services enable Russia to support its military efforts and avoid sanctions.

As part of this initiative, the US Treasury declared its intention to impose sanctions on segments of Russia’s financial infrastructure, encompassing institutions such as the Moscow Exchange, a key component of Russia’s stock market.

The Moscow Exchange announced that trading in dollars and euros would be suspended from June 13.

“Russia’s war economy is deeply isolated from the international financial system, leaving the Kremlin’s military desperate for access to the outside world,” said Secretary of the Treasury Janet L. Yellen.

These sanctions strike Russia’s remaining avenues for international materials and equipment, including their reliance on critical supplies from third countries

“We are increasing the risk for financial institutions dealing with Russia’s war economy and eliminating paths for evasion, and diminishing Russia’s ability to benefit from access to foreign technology, equipment, software, and IT services,” Yellen added.