A year of unprecedented, US-led sanctions designed to isolate one of the world’s largest economies has left Russia weakened, but not incapacitated.
Instead of the forecast double-digit GDP drop, Russia’s economy contracted by about 3% last year. After an initial crash heralded by President Joe Biden, the country’s currency has stabilized. And while US export controls have restricted Russia’s ability to obtain necessary components to manufacture some sophisticated military hardware, Russia has found countries willing to help keep its war machine humming.
If the first year of the US-led sanctions campaign was all about cutting Russia off from the global economy and degrading its military industrial complex, year two will be focused on sealing the cracks.
Biden administration officials say they will apply a laser-like focus on cracking down on Russia’s sanction evasion efforts, which span adversaries like China as well as allies and partners like Turkey, India and the United Arab Emirates.
That focus will include an important shift: After a year focused on trying to wrangle countries into compliance with US sanctions through a combination of technical assistance and delicate diplomacy, the administration now plans to take its efforts directly to individual companies.
The administration will present “a clear choice” to those companies, Deputy Treasury Secretary Wally Adeyemo told CNN in an interview.
“If they continue to sell Russia materials in support of their war effort, then they’re not going to have access to the economies of our coalition, which frankly represent a far bigger customer to them,” Adeyemo said.
That effort started on Friday, when the administration announced sanctions for “over 200 individuals and entities, including both Russian and third-country actors across Europe, Asia, and the Middle…
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