US hits Russian lawmakers, defence sector with new sanctions
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The US will impose full blocking sanctions on more than 400 individuals and entities from Russia.
PHOTO: REUTERS
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BRUSSELS (BLOOMBERG) - The United States announced on Thursday (March 24) a new package of sanctions on Russian elites, lawmakers and defense companies, punishments designed to ramp up pressure on Moscow over its invasion of Ukraine.
The measures announced during summit meetings between President Joe Biden and Nato, as well as the Group of Seven, 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 Russian elites and 48 Russian defence companies.
The sanctions will hit 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 Corp, High Precision Systems, NPK Tekhmash OAO and Kronshtadt, according to the White House.
An agreement with European Union countries to reduce their dependence on Russian energy sources is expected to be announced on Friday, according to a senior administration official, who declined to detail the measures.
The US and EU are working on an agreement to ensure American natural gas and hydrogen supplies go to European member states in an effort to end its reliance on Russian fuels, Bloomberg News reported Wednesday.
The G-7 leaders agreed on an initiative to coordinate on sanctions enforcement so that the countries can jointly respond to any attempts to evade the measures.
The steps include banning transactions in gold with the Russian central bank and 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 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.
