Junmo Yoon

Associate Editor

Loyola University Chicago School of Law, JD 2024

Exactly one year since the invasion of Ukraine, on February 24^th 2023, the White House, in coordination with other G7 leaders (Canada, France, Germany, Italy, Japan, and the United Kingdom), announced the newest round of sanctions against key revenue generating sectors for Russia. In efforts to further degrade Russia’s economy and diminish its ability to wage war against Ukraine, the action newly targets over 200 individuals and entities including Russian firms, banks, manufacturers, and officials that helped Russia evade earlier sanctions throughout the war. Including members of the European Union, more than 30 countries representing more than half the world’s economy have already imposed unprecedented sanctions on the Russian economy, making it the most sanctioned nation in the world.

2022 White House statement and initial sanctions 

The first round of sanctions came on April 6, 2022, as the United States, with the G7 and the European Union, announced that severe and immediate sanctions on the Putin regime. Some of the many Russia-related U.S. sanctions by different agencies included:

• Sanctions on Russian entities and individuals: U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) expanded the original Executive Order 14024 that only included the financial services, technology, defense, and other related material sectors of the Russian economy. Newly designated sectors included the aerospace, marine, and electronics sectors of the Russian economy. Other OFAC-targeted Russian entities included some of the biggest banks of Russia and state-owned entities such as shipbuilding corporations and mining companies.
• Sanctions to traditional and virtual currency: OFAC imposed expansive sanctions against Russian transactions involving traditional and virtual currency. Further sanctions included Russia’s virtual currency mining industry.
• Terminating privileges at international institutions for trade and finance: Biden Administration announced that it would deny and diminish the power and benefits of Russia’s membership at the World Trade Organization, the International Monetary Fund, and World Bank.
• U.S. Congressional Actions: President Biden signed into law the “Suspending Normal Trade Relations with Russia and Belarus Act,” suspending nondiscriminatory tariff treatment for Russia and Belarus
• Restrictions on Imports and Exports of Goods: President Biden’s executive order prohibited the importation of crude oil, petroleum, liquefied natural gas, coal, and related products of Russian origin. OFAC further added to prohibit importation of gold of Russian origin.
• Airspace and maritime restrictions: President Biden issued a proclamation prohibiting Russian affiliated aircraft and vessels from entering U.S. airspace and ports.
• Restrictions on natural resources: OFAC imposed blocking sanctions on the Nord Stream 2 pipeline, as well as on the CEO of the Nord Stream AG.

2023 White House statement and new sanctions

New U.S. actions consists of a first-ever joint compliance action by the Department of Commerce’s Bureau of Industry and Security (BIS), the Department of Treasury’s OFAC, and the Department of Justice. These measures are, again, part of a multi-prong package taken against Russia to further restrict Kremlin’s ability to maintain its continued war against Ukraine.

OFAC added dozens of individuals consisting of Russian governors and family members of Russian government officials. The list also consists of additions to the Specifically Designated Nationals and Blocked Persons (SDN) List to include Russian conglomerates, financial institutions, defense and related materials targets, technology firms, and alleged sanctions-evasions networks that help previously-sanctioned Russians evade such financial or economic restrictions.

New export control actions will list nearly 90 Russian and Belarussian companies, including China, on an “Entity List” for engaging in sanction evasion and backfill activities in support of Russia’s defense sector. The listing will prohibit targeted companies from acquiring semiconductors, industrial machinery, luxury goods, and other items, as well as issue new restrictions on drones from entering the Ukrainian battlefield.

The new U.S. Export Administration Regulations by the BIS looks to further restrict items including any components, parts, accessories, and attachments affiliated with Russia and Belarus.

The new set of sanctions also include increase in tariffs on certain Russian products imported into the U.S. in an effort to curb revenues for the Kremlin and U.S. reliance on Russian metals. The increase affects more than 100 Russian metals, minerals, and chemical products worth approximately $2.8 billion. Section 232 tariff on aluminum produced in Russia will be increased to 200 percent beginning March 10, 2023. It also includes other metals such as copper, lead, and nickel.

In conclusion, the White House statement highlights the United States’ continued support for Ukraine as the U.S., the G7 countries, and the G30 partners have vowed to continue to monitor and curb Russia’s intrusion of Ukraine’s sovereignty and integrity. The U.S. takes a range of actions to provide Ukraine with the support it needs and hold Russia accountable. The statement sends a clear message that the U.S. will continue to stand with Ukraine.