U.S. Announces Sanctions on Russia, Marking Two Years Since Ukraine Attack

US announces new sanctions that target 500 targets on Russia.
US announces new sanctions that target 500 targets on Russia. Credit | Getty images

United States – Deputy U.S. Treasury Secretary Wally Adeyemo told Reuters in an interview on Thursday that the U.S. will apply sanctions on over 500 targets on Friday to commemorate the second anniversary of Russia’s invasion of Ukraine.

Global Action Against Russia

The action, combined with other countries, will seek to target Russia’s military-industrial complex and the companies in third countries that facilitate Russia’s access to the goods it wants. Adeyemo expressed his opinion that Washington must hold Russia accountable over the war and the death of Alexei Navalny.

“Tomorrow, we’ll release hundreds of sanctions just here in the United States, but it’s important to step back and remember that it’s not just America taking these actions,” Adeyemo said.

Ongoing Sanctions Since 2022 Attack

Visual Representation – Moscow since Russia’s 2022 attack on Ukraine. Credit | REUTERS

The package is the latest of thousands of sanctions that the US and its allies have imposed on Moscow since Russia’s 2022 attack on Ukraine, which led to the death of thousands of people and turned cities into ruins.

The new penalties were introduced as the US and its partners tried to keep the pressure on Russia amid concerns over whether the US Congress would authorize more security assistance for Kyiv.

The administration of President Joe Biden has spent all the money that was previously approved for Ukraine, and the request for additional money is pending in the House, which is controlled by the Republicans.

“Sanctions and export controls are geared towards slowing Russia down, making it harder for them to fight their war of choice in Ukraine,” Adeyemo said.

“But ultimately, in order to speed Ukraine up, to give them the ability to defend themselves, Congress needs to act to give Ukraine the resources that they need and the weapons they need.”

The penalties alone won’t be enough to halt Moscow’s attacks, experts have warned, as reported by Reuters.

“What Congress does to pass additional military assistance to Ukraine is going to matter far, far more than anything else they could do on the sanctions front,” Peter Harrell, a former National Security Council official, said.

In December 2022, the Treasury Department reported that Russia’s economy had shrunk a bit due to the sanctions: it contracted by 2.1 % in 2022.

Impact on Russia

Russia’s GDP is 5 % smaller than was forecasted in 2013, according to Chief Sanctions Economist Rachel Lyngaas.

In spite of this, Russia’s economy has put up strong numbers, with the International Monetary Fund forecasting in January a GDP growth of 2.6% for the next year – 1.5 percentage points better than the October estimate and after a solid 3.0% growth in 2023, as reported by Reuters.

“It is clear now that Russia is in a war economy,” IMF spokesperson Julie Kozack said Thursday. Military expenditures are increasing weapons production, government support transfers are fuelling consumer demand, and inflation persists despite falling elsewhere.