On Wednesday, the United States announced new sanctions against over 300 individuals and entities in Russia and other countries, including Chinese companies that supply Moscow with weapons-grade chips for use in the conflict in Ukraine. These sanctions come just before the G7 summit in Italy, where the war in Ukraine will be a major topic of discussion.
The objective of these sanctions is to cut off financing to Russia’s war sector and prevent the Kremlin from evading sanctions imposed by the US and its allies after the invasion of Ukraine in February 2022. Treasury Secretary Janet Yellen stated that these sanctions will make Russia’s economy even more desperate to access the outside world.
The new measures expand the so-called “secondary” sanctions, allowing the US to blacklist any entity that does business with previously sanctioned Russian entities. This is aimed at discouraging financial support for Russia’s war efforts, especially from China.
The sanctions also restrict access to Moscow’s stock exchange, preventing foreign investors from financially supporting Russian companies in the defense sector. Chinese companies accused of selling chips to Russia have been targeted, as these chips are crucial for building missiles and other weapons for the conflict in Ukraine.
Other sanctions target companies involved in Russia’s future production and export capacity for energy, metals, and mining. So far, the Biden administration has not imposed direct sanctions on Chinese or European banks suspected of financing Russia’s war machine.
Overall, these new measures aim to put pressure on Russia while also preventing China from becoming too closely tied to Moscow’s actions in Ukraine. The G7 summit will provide an opportunity for leaders from around the world to discuss their concerns about Russia’s aggression and work towards finding a peaceful resolution to this ongoing conflict.
