President Joe Biden signed an executive order on Friday allowing sanctions to be imposed on financial institutions that handle transactions supporting the Russian arms industry. The White House hopes that this will affect the supply chain for the Russian military and the practice of bypassing restrictions using third countries.
“This regulation will send a clear signal to foreign financial institutions that they risk losing access to the U.S. financial system if they facilitate significant transactions related to the Russian arms industry,” the White House said in a statement.
Cutting off from the American market without notice
The regulation states that banks, insurance companies and other financial institutions handling transactions whose final recipient is Russian industry may be cut off from the US market without notice. This is intended to force them to check the customers they serve more closely and to disrupt Russia’s practice of using third countries to bypass electronics export controls. Russia has so far used intermediaries in many countries, including the United Arab Emirates, TurkeyCentral Asian countries, China and in the Caucasus.
As announced by the US National Security Advisor Jake Sullivan, it is “tightening the screws of the Russian war machine and its helpers.” “Today’s action underscores the need for financial institutions around the world to ensure they do not facilitate activities that support Russia’s war effort and to implement due diligence practices,” the US foreign minister said in a statement. Antony Blinken.
Sanctions on Russian goods that have been processed in other countries
The regulation also allows for a ban on the import to the United States of goods originally from Russia but significantly processed in other countries. Among other things, he will walk about diamonds and seafood.
Main photo source: PAP/EPA/AL DRAGO / POOL