USA imposes sanctions on hundreds of companies allegedly supplying Russia's war machine

WASHINGTON (AP) — The United States on Friday imposed sweeping sanctions on hundreds of companies in Russia, as well as in Europe, Asia and the Middle East, accusing them of providing products and services that support Russia's war effort and help it evade sanctions.

The companies sanctioned by the U.S. Treasury Department included 60 technology and defense companies based in Russia, including three Russian financial technology companies. Also sanctioned were firms in Turkey, France and Hong Kong that act as suppliers to Russia-based transportation equipment wholesaler Promtekh, as well as an ammunition procurement network with ties to Italian and Turkish nationals who also face sanctions.

Friday's move is the latest in a series of thousands of U.S. sanctions imposed on Russian firms and their suppliers in other countries since Russia's invasion of Ukraine in February 2022. The effectiveness of the sanctions has been questioned, especially as Russia continues to prop up its economy by selling oil and gas on international markets.

In addition, the State Department named individuals and companies involved in Russia's energy, metals and mining exports, drone production, subsidiaries of the Russian state nuclear energy company Rosatom, and individuals who, according to the United States, were involved in Kidnapping of Ukrainian children and to make them identify themselves as Russians.

The announcement comes one day before Ukraine’s Independence Day and while the Ukrainian armed forces Advance into the Russian region of Kursk.

Friday’s action is intended to make amends for Commitments made by President Joe Biden This summer, he and his G7 colleagues in Italy signed an agreement aimed at disrupting Russia's military supply chains and driving up the costs of its war machine.

“Russia has transformed its economy into a tool in the service of the Kremlin's military-industrial complex,” said US Deputy Treasury Secretary Wally Adeyemo in a statement announcing the sanctions. “Companies, financial institutions and governments around the world must ensure they do not support Russia's military-industrial supply chains.”

Earlier this year, the United States passed a Aid package for Ukraine which enables the administration confiscate Russian state assets based in the USA and use them to Kyiv's advantage.

Shortly thereafter, the leaders of the Group of Seven wealthy democracies agreed to $50 billion loan to support Ukraine in its fight for survival. The collateral would be interest from the profits from Russia's $300 billion in frozen central bank deposits, mainly in Europe.