In an interview with Reuters on Thursday, Deputy US Treasury Secretary Wally Adeyemo revealed that the United States is set to enact sanctions on more than 500 entities on Friday, coinciding with the second anniversary of Russia's incursion into Ukraine.
Adeyemo emphasized that this collective action, undertaken in conjunction with other nations, aims to target Russia's military-industrial complex and businesses in third-party countries facilitating Russia's procurement of desired goods. This move underscores Washington's commitment to holding Russia accountable not only for its involvement in the conflict but also for the demise of opposition figure Alexei Navalny.
Highlighting the broad international collaboration behind these measures, Adeyemo emphasized, "Tomorrow we'll release hundreds of sanctions just here in the United States, but it's important to step back and remember that it's not just America taking these actions."
This forthcoming package of sanctions adds to a series of punitive measures enacted by the United States and its allies since Russia's invasion of Ukraine in 2022, a conflict that has resulted in significant casualties and widespread destruction.
Despite doubts surrounding the approval of further security aid for Kyiv by the US Congress, Adeyemo stressed the importance of such assistance in bolstering Ukraine's defense capabilities.
He noted, "Sanctions and export controls are geared towards slowing Russia down, making it harder for them to fight their war of choice in Ukraine. But ultimately, to speed Ukraine up, to give them the ability to defend themselves, Congress needs to act to give Ukraine the resources that they need and the weapons they need."
Acknowledging the limitations of sanctions in halting Moscow's aggression, experts have emphasized the critical role of congressional action in providing meaningful military support to Ukraine.
The Treasury Department's assessment in December indicated that the sanctions had taken a toll on Russia's economy, resulting in a contraction of 2.1% in 2022. Despite this setback, Russia's economy outperformed expectations, with the IMF projecting a 2.6% GDP growth for 2024, signaling a 1.5 percentage point increase from previous estimates.
However, IMF spokesperson Julie Kozack cautioned that Russia is currently operating within a "war economy" characterized by increased military spending, government subsidies to sustain consumption, and escalating inflation, posing significant economic challenges despite growth projections.
