Deputy US Treasury Secretary Wally Adeyemo announced that the United States, in collaboration with other nations, will impose sanctions on more than 500 targets on Friday, marking the second anniversary of Russia’s invasion of Ukraine. The sanctions will specifically target Russia’s military-industrial complex and companies in third countries facilitating Russia’s access to desired goods. Adeyemo emphasized that this action is part of a collective effort by various countries to hold Russia accountable for the war and the death of opposition leader Alexei Navalny.
Adeyemo stated, “Tomorrow, we will unveil a comprehensive set of sanctions here in the United States. It’s crucial to recognize that these actions extend beyond America alone.” This move follows a series of sanctions imposed by the US and its allies in response to Russia’s 2022 invasion of Ukraine, resulting in widespread casualties and city destruction.
One notable initiative includes a price ceiling set by the coalition of G7 economies, the EU, and Australia, aiming to reduce Moscow’s revenues from oil and petroleum product exports. The coalition established a $60 per barrel cap on Russian crude, providing Russia with the option to either sell discounted oil to coalition countries or invest in developing an alternative ecosystem. Recently, the coalition has announced plans to enhance compliance with the price ceiling.
Despite doubts about additional security assistance for Kyiv gaining approval in the US Congress, the new sanctions, described as the largest single tranche since the war began, underscore the ongoing effort to exert pressure on Russia. President Joe Biden’s administration has depleted previously allocated funds for Ukraine, and a request for additional resources faces challenges in the Republican-controlled House of Representatives.
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Adeyemo stressed the importance of Congress acting promptly to provide Ukraine with the necessary resources and weaponry for self-defense. Experts caution that while sanctions have impacted Russia’s economy, additional military assistance from Congress is crucial to addressing the situation effectively.
Former National Security Council official Peter Harrell highlighted the significance of Congress passing military assistance for Ukraine, emphasizing its greater impact compared to sanctions. The US Treasury Department reported a 2.1% contraction in Russia’s economy in 2022 due to sanctions, with the economy being over 5% smaller than pre-sanction predictions.
Despite economic challenges, Russia’s economy has outperformed expectations, with the International Monetary Fund projecting a 2.6% GDP growth for 2024. However, IMF spokesperson Julie Kozack noted on Thursday that Russia is now operating in a war economy, with increased military expenditures, government social transfers supporting consumption, and rising inflation despite declines elsewhere.
