Photo: Evan Vucci/AP Photo
WASHINGTON - U.S. President Joe Biden on Friday signed an executive order giving the U.S. Treasury Department the authority to target financial institutions that aid Russian efforts to support the defense industry. The new sanctions aim to thwart the Kremlin's efforts to replenish the Russian military's depleted arsenal after nearly 22 months of fighting in Ukraine. According to a US assessment, Russia has already lost more than 13,000 pieces of equipment, including tanks, drones and missile systems.
The regulation also seeks to tighten existing restrictions on diamonds and seafood imported from Russia following a review by US agencies.
Putin says there will be no peace in Ukraine until Russian goals are met
Russian President Vladimir Putin said on Thursday that there will be no peace in Ukraine until the Kremlin achieves its goals, which remain unchanged after nearly two years of fighting that has caused tensions to rise between Moscow and the West. (December 15) AP
"We expect financial institutions to make every effort to ensure that they are not wittingly or unwittingly facilitating tax avoidance and evasion," Treasury Secretary Janet Yellen said in a statement announcing the order. "And we will not hesitate to use the new tools provided by this authority to take decisive and surgical action against financial institutions that facilitate the supply of the Russian war machine."
The latest effort to ratchet up pressure on Russia comes just weeks after Biden and G-7 leaders met to virtually discuss support for Ukraine as unease spreads in Washington over the cost of supporting Kiev in a war with no end in sight.
The White House is in talks with key lawmakers to approve more money for Ukraine. Biden has proposed a $110 billion war aid package for Ukraine, Israel and other national security priorities. GOP lawmakers have refused to approve the money until the White House agrees to major changes in immigration and U.S.-Mexico border policy... The Defense Department says it has nearly exhausted the available funds to support Ukraine's defense.
G-7 leaders said in a statement after the December 6 meeting that they would seek to limit Russia's use of the international financial system to support its war in Ukraine and target "Russian military procurement networks and those who help Russia obtain machine tools, equipment and key inputs."
Russia's defense spending rose by nearly 75 % in the first half of 2023 and Russia is on track for record military spending next year.
"This executive order comes at a critical time," wrote Deputy Finance Minister Wally Adeyemo in an article for the Financial Times published on Friday. "By raising the stakes for banks supporting sensitive trade with Russia and continuing sanctions on new front companies and supply networks, our coalition is pouring sand into the gears of Russian military logistics."
Military.com/JaV
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