Sanctions for violating sanctions: the U.S. promises consequences for supporting Russia

U.S. Treasury Secretary Janet Yellen, during her visit to China, issued a warning to banks and exporters of the country: if you help strengthen Russia’s military potential, Washington will come after you. China received the warning just as Russian Foreign Minister Sergey Lavrov was visiting the country.

Banks that violate sanctions can be blocked from accessing the US financial system, which effectively means the destruction of a financial institution. In this way, the administration of the US president is trying to punish companies that help Russia evade sanctions imposed by them and their allies. in 2022“, believes Alona Lebedieva, owner of the Ukrainian diversified industrial and investment group of companies “Aurum Group”.

In her opinion, the issue of circumventing sanctions by Russia is currently on the agenda in many countries.

Over the past two years, Russia has gradually adapted to the restrictions, managed to establish new trade routes, and profit from sub-sanctioned goods. In particular, it has increased trade with countries that do not impose sanctions – China, India, and some Middle Eastern countries.”Although sanctions are working, the Putin regime receives less money for financing the war, but this is not enough. Moscow continues to sell its energy resources, obtaining funds to purchase high-tech components for missiles and drones, industrial equipment, spare parts, and Western technologies through third countries. Restrictions need to be strengthened, and, most importantly, their compliance needs to be strictly controlled and violators punished. And the example of how the U.S. operates is illustrative“, Lebedieva is convinced.

The issue of circumventing sanctions in the EU is equally concerning. Vice-President of the European Commission Valdis Dombrovskis has already stated that Europe is preparing the 14th package of sanctions against Russia and is also looking for ways to stop the circumvention of restrictions.

Reminder: On February 23, 2024, the EU approved the 13th package of sanctions against Russia. It is aimed at further restricting access to military technologies and expanding the list of companies aiding in the war.