Overview
- The US Treasury Department has announced the use of secondary sanctions against banks that facilitate deals for Russia to procure war equipment, marking a significant expansion of US authorities in the battle against Russia.
- President Joe Biden signed an executive order allowing the US to impose another level of sanction enforcement on Russia that targets financial institutions indirectly aiding Russia's war efforts.
- The Kremlin has threatened serious consequences if Russian assets held abroad, estimated to be over $300bn, are seized to aid the Ukrainian budget and war effort.
- The US is also targeting loopholes that have given Russia access to cash, including banning products that originated in Russia but were transformed outside its borders, such as diamonds.
- The new sanctions are seen as a critical messaging tool, warning anyone supporting Russia’s unlawful war effort that they risk losing access to the US financial system.