US imposes sanctions on suppliers supporting Russia's war efforts

The US is sanctioning almost 400 individuals and companies in India, China and Turkey as part of a bid to crack down on a sprawling network that has helped keep Russia’s war machine running nearly three years into the full-scale invasion of Ukraine.

 

The list of targets includes companies in China, a US adversary that has openly helped President Vladimir Putin, as well as entities in countries that work with the US such as India, Turkey and Switzerland. That risks new friction with the very governments the US is hoping it can count on to further isolate Russia.  

The US and its allies have piled thousands of sanctions on Russia since the invasion in February of 2022, yet the country’s GDP is projected to grow 3.5% to 4% in 2024. The new actions are intended in part as a warning to countries outside the US and Russia about the risk of doing business with the Kremlin, a senior US official told reporters on condition of anonymity.  

 

“As evidenced by today’s action, we are unyielding in our resolve to diminish and degrade Russia’s ability to equip its war machine and stop those seeking to aid their efforts through circumvention or evasion of our sanctions and export controls,” Deputy Treasury Secretary Wally Adeyemo said in a statement. 

Shreya Life Sciences Private Limited, a pharmaceutical company based in India, is accused of sending Russia hundreds of shipments of US-trademarked technology, including advanced servers designed for artificial intelligence and machine learning. India has risen to become Russia’s No. 2 supplier of critical goods in recent months, second only to China.

  The sanctions also targeted more than two dozen Hong Kong-based entities for shipping components and microelectronics for use in Russia’s defense industry, including Ace Electronic (HK) Co. Last month, a Bloomberg Businessweek story exposed how the company was shipping chips used in a deadly missile attack on Ukraine in 2023.

  The Biden administration’s move is the latest step in a so-far unsuccessful push to clamp down on the flow of microchips, machine tools and advanced electronics via third countries that continue to supply Russia’s defense-industrial base. 

  After the US restricted the flow of such goods via the United Arab Emirates and other nations, India emerged as a new transshipment hub. Earlier in October, people familiar with the matter said that India has surged to become the second-biggest supplier of restricted critical technologies to Russia.

  Companies based in Turkey, China and India are accused of sending Russia materiel critical to the war effort, including roller bearings, fuses and microelectronics. The US also sanctioned Anna Tsivileva, the daughter of Putin’s late cousin. She was appointed deputy defense minister this year.

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  A pair of Swiss lawyers, Andres Baumgartner and Fabio Libero Delco, were among those sanctioned on Wednesday as the US also seeks to put pressure on intermediaries in Switzerland that offer legal cover for continued violations.  

The Treasury and State Department also targeted elements of the Russian defense industrial complex as well as Russian officials responsible for procuring critical materials from abroad for use in ships, drones and other weapons systems.