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Thwarting Russia's Ability to Wage War


(FILE) Russia's President Vladimir Putin attends a meeting with CEO of Promsvyazbank in Moscow on August 29, 2024.
(FILE) Russia's President Vladimir Putin attends a meeting with CEO of Promsvyazbank in Moscow on August 29, 2024.

The United States will use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail the Kremlin’s ability to exploit the international financial system.

Thwarting Russia's Ability to Wage War
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In a new push to ham-string Russia’s ability to wage war, as well as to hamper its ability to evade sanctions, the United States Department of State and the Treasury Department have sanctioned almost 250 individuals and entities involved in Russia’s defense industry and supporting its military industrial base.

Individuals and entities who enable Russia to evade sanctions are among the U.S Government’s prime targets. Take for example the case of Keremet Bank in Kyrgyzstan.

Since at least last summer, Keremet officials coordinated with Russian officials at Russia’s Promsvyazbank Public Joint Stock Company, a bank that was previously sanctioned by the Unites States. Keremet Bank helped Russia evade sanctions by facilitating cross-border payments on the Russian bank’s behalf.

At the same time, the Treasury Department designated or re-designated a number of individuals and entities, for similar cross-border sanctions evasion schemes between actors in Russia and in the People’s Republic of China.

The U.S. Government also targeted a number of schemes meant to help Russia more easily acquire sensitive and dual-use goods. For example, Russia and China have set up regional clearing platforms in both Russia and China to allow for cross-border payments for such goods, and to facilitate non-cash mutual settlement for payments for so-called sanctioned goods.

Finally, the United States is designating a number of Russia-based entities pursuant to Executive Order 13662 for operating in the financial services sector of the Russian Federation economy; operating in the energy sector of the Russian Federation economy; or operating in the defense and related materiel sector of the Russian Federation economy.

These actions by the U.S. Department of State and the Treasury Department frustrate the Kremlin’s ability to circumvent our sanctions and get access to the goods they need to build weapons for their war of choice in Ukraine. In addition, expansion of mandatory secondary sanctions will reduce Russia’s access to revenue and goods.

The United States will use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail the Kremlin’s ability to exploit the international financial system and generate revenue in furtherance of its war against Ukraine. We support Ukraine as it defends its people and its sovereign territory from Russia’s unprovoked aggression.

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