The Biden administration has announced a series of new financial sanctions aimed at disrupting the growing technological ties between China and Russia, which American officials believe are helping Russia rebuild and modernize its military during the war with Ukraine.
These measures were unveiled as President Biden departed for a meeting in Italy with the Group of 7 industrialized economies, where efforts to weaken the Russian economy will be a top priority.
The sanctions, coordinated by the Treasury, State, and Commerce Departments, are designed to isolate Russia from the global financial system and prevent it from accessing technology crucial to its military capabilities. The actions target Chinese companies that have been accused of aiding Russia in obtaining critical military equipment.
Treasury Secretary Janet L. Yellen stated that Russia’s war economy is cut off from the international financial system, leaving the Kremlin’s military desperate for outside access. The measures include expanding “secondary” sanctions to blacklist banks worldwide that do business with sanctioned Russian financial institutions, aiming to deter smaller banks from supporting Russia’s war efforts.
In addition to the Treasury Department’s actions, the State Department imposed sanctions on entities involved in Russia’s energy, metals, and mining sectors, while the Commerce Department announced restrictions on American exports to certain addresses in Hong Kong used to funnel banned goods to Russia.
The Biden administration hopes these sanctions will not only disrupt the growing commercial relationship between Russia and China but also encourage European and Asian allies to take similar measures. Secretary of State Antony J. Blinken has warned China that supporting the Russian defense industry could strain its relationships with European powers.
The administration’s efforts come as China has increased its shipments of crucial military components to Russia, contributing to the rise of a parallel war economy involving Russia, China, Iran, and North Korea. U.S. officials believe that by targeting Chinese firms, they can stem this deepening commercial relationship and weaken Russia’s military capabilities.
The issue of China’s support for Russia’s defense industry has been raised in discussions with European counterparts and is expected to be on the agenda at a leaders’ summit in Washington in July. Mr. Blinken emphasized the importance of addressing China’s role in fueling the threat to European security, stating that China cannot expect to improve relations with Europe while aiding Russia’s military efforts.
