US President Joe Biden signed an executive order on Friday sanctioning the Russian defense industry, amid a congressional deadlock over further US funding to Ukraine. This recent order amends two previous ones: EO 14024, Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation; and EO 14068, Prohibiting Certain Imports, Exports, and New Investment With Respect to Continued Russian Federation Aggression. These amendments come as a response to Russia’s use of its military-industrial base to undermine security in regions significant to the United States’ national security.
The revised executive order effectively sanctions specific goods, such as diamonds mined in Russia and seafood processed in a third country. Interestingly, these sanctions will not impact US companies transacting in Russian-made goods outside the US; they merely prohibit the import of such goods into the US.
Expounding on this, US Treasury Secretary Janet Yellen stated the executive order would permit sanctioning of financial institutions that facilitate significant transactions on behalf of designated individuals operating in certain key sectors of the Russian economy. This specifically targets those who support the country’s military-industrial base. The order also authorizes the Treasury to bar the import of products processed or significantly transformed in third countries, like Russian seafood and diamond products.
These sanctions underscore the US’s commitment to the G7 Leaders’ Statement, effectively warning foreign financial institutions that aiding significant transactions related to Russia’s military-industrial base may expose them to U.S. sanctions.
In line with this sentiment, National Security Advisor Jake Sullivan declared in a press statement that these latest sanctions are intended to highlight the risks of sanction exposure to foreign financial institutions facilitating significant transactions relating to Russia’s military industrial base.
Despite the current deadlock in Congress regarding further financial aid to Ukraine, US continues its support in the ongoing conflict against Russia. The Biden administration has explored other measures, such as executive actions. Recently, the Treasury Department and the State Department announced coordinated sanctions against more than 200 individuals and entities to undermine Russia’s war capabilities in the ongoing conflict in Ukraine.