The United States announced Wednesday that it is expanding the network of sanctions against companies and institutions that support the war efforts of Russia in Ukraineredesignating about 100 entities and applying sanctions to another 15.
A senior Treasury Department official said that under the sanctions Any company that does significant business with parts of Russia’s military industrial complex would also face the risk of penalties. The official insisted on anonymity to advance the announcement in a call with reporters.
The official indicated that the elimination of the sanctions would require notification to Congress. That step could make it more difficult for the incoming administration of donald trump adjust or modify sanctions without attracting public scrutiny.
The official emphasized that there are new sanctions on 15 companies related to Russia and China that have cooperated to avoid existing sanctions.
The Treasury is sanctioning the following Russian companies for being involved in this scheme: Herbarium Office Management, Atlant Torg, Sigma Partners, Tranzaktsii I Raschety, Arctur and Paylink Limited. It is also sanctioning Russian national Andrei Prikhodko, CEO of Herbarium.
There are also sanctions on companies based in China: Anhui Hongsheng International Trade, Qingyuan Fo Feng Leda Supply Chain Service, Heilongjiang Shunsheng Economic And Trade Development, Qingdao Hezhi Business Service, Xinjiang Financial Import And Export, Hangzhou Xianghe Trading, Shaanxi Hongrun Jinhua Trading, Fujian Xinfuwang International Trade, and Jilin Province Shunda Trading Company.
Separately, Keremet Bank in Kyrgyzstan is being sanctioned for coordinating with Russian officials and a US bank to evade sanctions.
Russia invaded Ukraine in February 2022, leading to aggressive sanctions by the United States and its allies and efforts by Russia and its partners to circumvent the restrictions. The current US administration sees recent changes in the oil market as an opportunity to intensify sanctions on Russian oil revenues without affecting global supplies.
The Treasury Department announced last week that it was expanding sanctions against the Russian energy sector over its war in Ukraine.
On the other hand, Ukraine considers that the latest sanctions introduced by the US against Russia’s energy sector are an important step to undermine its ability to finance the war, but stresses the importance of taking new measures, including the reduction of the cap imposed by the West to the Russian crude oil export from 60 to 30 dollars.
Washington, in coordination with London, sanctioned two of Russia’s largest oil producers and exporters last week: Gazprom Neftthe third largest oil company in the country, and Surgutneftegazanother prominent company in the energy sector, in addition to two dozen subsidiaries and 183 ships of the Russian shadow fleet.
“Targeting 183 Russian tankers and two key companies is a serious step, especially since – unlike similar sanctions from the European Union and the United Kingdom – it threatens secondary sanctions against those companies that deal with them in any way,” he said. Wednesday to EFE Andrí Klimenko, from the Institute of Black Sea for Strategic Studies.
However, he warned against excessive optimism about its eventual impact on Russian oil trade revenues, estimated at $193 billion in 2024 by the KSE Institute, a think tank of the kyiv School of Economics.
“No one can accurately predict the global effect (of the measure) due to the large number of oil tankers and companies affected. Russia will also try to counter them. Other more decisive measures are needed,” he said.
According to Andri Yermak, head of Volodymyr Zelensky’s Presidential Office and co-chair of the McFaul-Yermak Group of experts on sanctions against Ukraine, the key to ending the war in Ukraine is to limit the price of Russian oil exports to $30 per cent. barrel and ensure its strict application.
(With information from AP and EFE)
