Russian supply chain sanctions mooted by US

The United States and its allies plan new sanctions on Russia’s economy, including supply chains, according to deputy US Treasury Secretary Wally Adeyemo.

Speaking in London on a European trip to consult with allies on strengthening and enforcing sanctions to punish Russia, Adeyemo said the broadening of those efforts was aimed at undermining “the Kremlin’s ability to operate its war machine”.

“In addition to sanctioning companies in sectors that enable the Kremlin’s malign activities, we also plan to take actions to disrupt their critical supply chains,” Adeyemo told an event.

“Our goal is to use an integrated approach that includes export controls which will bite over time and sanctions that will bite immediately,” he said, adding they would also target alternative military suppliers used by Russia.

Since the invasion began on 24 February, a number of measures have been taken by the West, including freezing Russia’s central bank’s foreign currency assets, banning key Russian banks and wealthy elites from hard currency transactions, and putting restrictions on exports of advanced semiconductors and other technology.

Adeyemo said these sanctions would stay in place for as long as the invasion continued.

However, he added that the use of economic sanctions must be refined to preserve their efficacy, including avoiding unilateral actions and ensuring that they are tied to clear policy objectives and can be easily reversed when these are met.

He also said that the international community needed to finalise the global minimum corporate tax agreement and continue providing the resources needed to end the COVID-19 pandemic, with broader vaccine access.

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