Biden Cracks Down on Russia with New Sanctions Order

In a major move against Russia, President Joe Biden is set to sign an executive order that enables the US to impose sanctions on financial institutions that aid Russia in evading sanctions. The order also allows the US to ban Russian products processed in third countries, such as seafood and diamonds. Treasury Secretary Janet Yellen emphasized the administration's commitment to exerting pressure on Russia, stating, "Today we are taking steps to level new and powerful tools against Russia's war machine." These measures reflect a wider effort by the US to crack down on sanctions evasion and further tighten the grip on Russia.

The United States, as well as its allies in the European Union and Britain, have continued to escalate pressure on Moscow since its 2022 invasion of Ukraine. The new executive order will make it clear to financial institutions that they must stop aiding the Russian defense sector or face significant sanctions. It will also target networks that Moscow is using to circumvent existing sanctions through the use of front companies and financial intermediaries. The move is being coordinated with US allies, and is a part of a broader effort to weaken Russia's economy and hinder its ability to evade international sanctions.

The new tools provided by the executive order are designed to give Treasury and its allies the means to target and disrupt Russia's sanctions-evasion networks. These sanctions are a direct response to the ongoing conflict in Ukraine, with the White House fearing that an end to US aid would give new momentum to the conflict. With the US Congress yet to approve a request by the Biden administration for direct assistance to Ukraine, the executive order is seen as a crucial step in the effort to pressure Russia and support Ukraine. The signing of the executive order comes after the United States said it will step up sanctions against Russian diamonds and seafood, and is part of a broader effort to exert pressure on Russia's economy and hinder its ability to circumvent international sanctions.