US announces new sanctions on Russia at G-7, Nato summits

BRUSSELS • The United States has announced a new package of sanctions on Russia's elite, lawmakers and defence companies - punishments designed to ramp up pressure on Moscow over its invasion of Ukraine.

The measures announced yesterday during summit meetings between President Joe Biden and Nato, as well as the Group of Seven (G-7), will be followed by others to reduce Europe's reliance on Russian oil and gas - the lifeblood of the nation's economy, according to senior administration officials.

The US will impose full blocking sanctions on more than 400 individuals and entities, including the Duma, Russia's Lower House of Parliament, and 328 of its members, more than a dozen of Russia's elite and 48 Russian defence companies.

"I'm announcing additional sanctions on over 400 Russian elites, lawmakers and defence companies in response to Putin's war of choice in Ukraine," Mr Biden said in a tweet. "They personally gain from the Kremlin's policies, and they should share in the pain."

The sanctions will hit Mr Herman Gref, the head of Russia's Sberbank and an adviser to President Vladimir Putin; Russian billionaire Gennady Timchenko, his companies and his family members; as well as 17 board members of the Russian financial institution Sovcombank.

Among the defence companies being sanctioned are Russian Helicopters, Tactical Missiles Corporation, High Precision Systems, NPK Tekhmash OAO and Kronshtadt, according to the White House.

The US and European Union are making explicit a ban on transactions in gold with the Russian central bank. A senior US official told reporters that allies have heard talk that Russia may use gold reserves to prop up the rouble and want to shut down its ability to do so.

The US and its partners have already blocked Russia's central bank from accessing half of its roughly US$630 billion (S$855 billion) in foreign reserves in a previous round of sanctions.

An agreement with EU countries to reduce their dependence on Russian energy sources is expected to be announced today, according to a senior administration official, who declined to detail the measures.

G-7 leaders have agreed on an initiative to coordinate on sanctions enforcement so that the countries can jointly respond to any attempts to evade the measures, including a call to restrict Russia's access to loans from the International Monetary Fund and the World Bank.

The EU is considering tightening or expanding existing sanctions against Russia in coordination with the US, while refraining from major new steps to cut off oil and gas purchases amid a deepening divide within the bloc over how to limit Moscow's biggest source of revenue.

Any new measures that countries can agree on this week would be limited in scope and possibly focused on closing loopholes, according to an EU diplomat.

Europe is continuing to purchase coal, oil and gas from Russia, while energy-related transactions are exempt from financial sanctions, shielding some of Russia's biggest banks from the bulk of penalties.

Meanwhile, British Prime Minister Boris Johnson said late on Wednesday that Britain would send 6,000 missiles and £25 million (S$45 million) in financial aid to Ukraine's army to help it fight Russian forces.

The additional military hardware consists of anti-tank and high-explosive weapons.

At the Nato and G-7 summits, the British leader urged Western allies to "step up a gear" in their responses to Moscow's actions, including by providing "enhanced defensive support to Ukraine and doubling down on economic sanctions", according to his office.

"Vladimir Putin has already crossed the red line into barbarism," Mr Johnson said.

"The harder our sanctions, the tougher our economic vice around the Putin regime, the more we can do to help the Ukrainians, I think the faster that this thing can be over," he said.

BLOOMBERG, AGENCE FRANCE-PRESSE