US imposes sanctions on hundreds of targets in fresh Russia action (updated)

Polymetal International PK

19/05/2023 15:30

(Adds details after paragraph 7, request for comment in
paragraph 5)
    By Daphne Psaledakis and Simon Lewis
       WASHINGTON, May 19 (Reuters) - The United States and its
partners on Friday announced new penalties aimed at punishing
Russia for its invasion of Ukraine, intensifying what is already
one of the harshest sanctions efforts ever implemented.
    Washington targeted Russia's sanctions evasion, future
energy revenues and military-industrial supply chains, imposing
sanctions on more than 300 targets.
    The move comes on the first day of the three-day G7 summit
in Japan and marks the latest sanctions and export controls
targeting Moscow, which have hit thousands of targets and
imposed steep curbs on Russia.
    "Today’s actions will further tighten the vise on (Russian
President Vladimir) Putin’s ability to wage his barbaric
invasion and will advance our global efforts to cut off Russian
attempts to evade sanctions," U.S. Treasury Department Secretary
Janet Yellen said in a statement.
    Russia's embassy in Washington did not immediately respond
to a request for comment.
    The U.S. and Europe imposed financial penalties on Russia
immediately following the start of the war last year and have
steadily ratcheted up the pressure since then, targeting Putin
and officials close to him, the financial sector and oligarchs. 
    Experts say Washington could still impose tougher penalties,
however - while the sanctions have clearly damaged Russia's
economy, they have so far failed to stop Putin from pursuing a
war that has killed tens of thousands and turned cities to
rubble.
       
    HUNDREDS OF TARGETS
    The Treasury Department said it imposed sanctions on 22
people and 104 entities with touchpoints in over 20 countries or
jurisdictions, including companies that import, ship or
manufacture electronics components, semiconductors and
microelectronics to Russia.
    U.S. Secretary of State Antony Blinken said Friday's action
targeted an international network that procures components for
the Russia-based entity responsible for the manufacture of the
Orlan drone, which Russian forces and their proxies are using in
Ukraine.
    As part of its crackdown in recent months on Russia's
evasion of sanctions, the Treasury Department designated people
and entities in Switzerland, Germany and Liechtenstein on
Friday.
    Among the targets on Friday were Russian intelligence
services procurement networks and agents, including in
Liechtenstein and the Netherlands. The Foreign Intelligence
Service of the Russian Federation was also hit with sanctions.
    Washington has previously warned that the Kremlin has tasked
its intelligence services with finding ways to circumvent
sanctions to replace equipment lost on the battlefield.
    The Treasury Department said it was also imposing sanctions
on Russia’s energy educational and research institutions in a
bid to “limit Russia’s future extractive capabilities” by
targeting the training grounds for Russia’s future energy
specialists, and sites where new extraction technologies are
developed. 
    The State Department also designated or blocked property of
almost 200 individuals, entities, vessels and aircraft and
imposed sanctions on Polyus  PLZL.MM  and Polymetal  POLYP.L ,
the largest gold producers in Russia. Polyus and Polymetal did
not immediately reply to a Reuters request for comment.
    The State Department also designated two Iranian shipping
companies, a port operator and a maritime service provider it
said were part of deepening ties between Russia and Iran.
    U.S. sanctions authorities were also expanded to more
sectors of the Russian economy, including architecture,
manufacturing and construction, the Treasury said.
    The Biden administration also halted the export of wide
range of consumer goods to Russia on Friday and added 71
companies to a Commerce Department's list that bars suppliers
from selling them U.S. technology without a hard-to-obtain
license.
    John Herbst, a former U.S. ambassador to Ukraine, said that
while international sanctions have had an impact on Russia’s
economy, much more could still be done. 
    "Certainly, sanctions can be toughened on the (Russian)
banking sector," said Herbst, now with the Atlantic Council
think tank, adding that it has been a partial application.
"They’ve gone after several of them, but others are able to
operate."

 (Reporting by Daphne Psaledakis, Simon Lewis, Jonathan Landay,
Susan Heavey and Doina Chiacu in Washington; Editing by Alistair
Bell)
 ((Daphne.Psaledakis@thomsonreuters.com;))