In its most expansive effort yet to exert pressure on the Russian economy, the United States is set to impose sanctions on over 500 individuals and entities associated with Russia’s military activities, as reported by a Treasury Department spokesperson. This move comes nearly two years after the invasion of Ukraine by President Vladimir Putin’s forces and reflects a significant escalation in measures aimed at curbing Russia’s aggression.
The forthcoming sanctions, to be announced jointly by the State and Treasury Departments on Friday, mark a significant escalation in the United States’ efforts to pressure Russia, particularly in response to recent events such as the death of Russian opposition leader Alexey Navalny. President Joe Biden had previously signaled the unveiling of a substantial sanctions package in light of Navalny’s passing in a remote Arctic prison.
These impending actions, reported earlier by the New York Times, represent a continuation of the robust sanctions regime imposed by the US following Russia’s invasion of Ukraine. Acting in coordination with European allies, the US has already implemented numerous sanctions targeting key sectors of the Russian economy and prominent individuals associated with the Putin regime.
These measures have included freezing central bank assets, severing ties with the Swift financial messaging system, and imposing export controls, including a price cap on Russian oil introduced in the summer of 2022. Such actions aim to both penalize Russia for its aggressive actions and diminish its capacity to sustain military operations.
Despite initial setbacks such as economic contraction and currency depreciation, the Russian economy has shown resilience and is forecasted to grow by 2.6% this year, according to the International Monetary Fund. However, experts caution that the long-term impact of sanctions and export controls may lead to a substantial reduction in Russian GDP by 2030, potentially as much as 10% lower than it would have been otherwise.
Victoria Nuland, Undersecretary of State, emphasized the effectiveness of export controls in weakening Russia’s military capabilities, noting that further tightening of restrictions is imminent. She highlighted the forthcoming announcement of a significant new sanctions package by the US and its partners, aimed at hampering Russia’s efforts and curbing sanctions evasion.
Meanwhile, President Biden met with the widow and daughter of Alexey Navalny in San Francisco, praising Navalny’s remarkable courage. Biden remarked on the legacy of bravery left by Navalny, underscoring the admiration for his wife and daughter as they continue to embody his spirit.
“We’re going to be announcing sanctions against Putin, who is responsible for his death, tomorrow,” Biden said.