US Imposes Comprehensive Sanctions on Russia... Targeting Defense Companies Including Rostec

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] On the 28th (local time), the U.S. Biden administration announced comprehensive additional sanctions against Russia, which invaded Ukraine.

According to major foreign media, the U.S. Treasury Department imposed sanctions on 70 defense-related institutions and 29 individuals, including Rostec, a Russian state-owned defense company. Companies in which Rostec directly or indirectly owns more than 50% of shares were also included in this sanction list. According to the Treasury Department, Rostec is connected to more than 800 institutions.

Additionally, the Treasury Department included the United Aircraft Corporation (UAC), which manufactures Russian fighter jets MiG and Sukhoi, as well as Tupolev, which produces strategic bombers and transport aircraft, in the sanctions list. Treasury Secretary Janet Yellen stated in a press release, "These measures will reduce Russia's capabilities in the Ukraine war and add further obstacles to a war already suffering from low morale, supply chain disruptions, and logistical failures."

Along with this, the Treasury Department also banned imports of Russian gold. Gold is Russia's second-largest export after oil. Furthermore, the self-proclaimed pro-Russian separatist forces in eastern Ukraine's Donbas region, the Luhansk People's Republic (LPR) and the Donetsk People's Republic (DPR), were also re-designated as sanction targets.

On the same day, the U.S. State Department also imposed sanctions on 45 institutions and 25 individuals. The sanctions targets included Russian military units and the Federal Security Service (FSB), Russia's intelligence agency. As a result, more than 500 Russian military and government officials will face visa restrictions.

The U.S. Department of Commerce added 36 institutions located in China, Russia, the United Arab Emirates, Lithuania, and Pakistan to the sanctions list, judging them to be acting against U.S. interests.

The day when the U.S. announced a slew of sanctions against Russia was also the day President Joe Biden finished the Group of Seven (G7) summit and traveled to Spain, where the North Atlantic Treaty Organization (NATO) summit was held. The G7 leaders agreed on the same day to impose a price cap on Russian crude oil and ban imports of Russian gold to cut off the funding sources of Russian President Vladimir Putin.