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US and allies to increase pressure on Russia for violating sanctions.

February 22
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This week, the United States and its allies will impose new sanctions on Russia in response to the war in Ukraine. Deputy U.S. Treasury Secretary Wally Adeyemo announced on Feb. 21 that the G-7, the European Union, and the United States will be leading more than 30 countries in an effort to prevent Russia from evading sanctions and export controls. The coalition seeks to inhibit Russian purchases of dual-use goods, which contain semiconductors needed for its military. If those continuing to do business with Russia, or provide material support to Russia, fail to comply with sanctions, they will face the consequences, such as sever sanctions.

The additional sanctions will also expand efforts to stop the international shipment of Russian oil and other restricted goods through bordering countries. Adeyemo said that the breadth of the coalition will enable them to continue to isolate Russia, and that the Western-led coalition is prepared to use sanctions, export controls, and other tools to make the costs of allowing Russia to evade sanctions too high.

However, Russian trade has increased with several of its neighbors and long-standing allies, like India and China, which has caused concern among supporters of Ukraine. One of the biggest worries is the rising amount of Russian trade with China, which still provides key technologies, like semiconductors, to Moscow. Adeyemo is expected to say that he is confident that China is not able produce the advanced semiconductors which the Kremlin needs to replace the military equipment lost since the start of the war.

The Treasury Department will be informing Chinese-owned companies and banks that they will face sanctions if they provide support to Russia. Adeyemo also said that Washington is providing intelligence to several countries to make them aware the U.S. coalition knows that their companies are not obeying the sanctions. If those nations fail to act on the data, the Western powers “are prepared to use the various economic tools at our disposal to act on our own,” with a threat to cut them from Western markets and financial networks.

Feb. 24 will be the one-year anniversary of the Russia-Ukraine conflict. Adeyemo admitted that Russia has done better than expected economically since the start of the war, but that the sanctions were forcing Moscow to use up its limited financial resources to prop up its economy.

Reuters contributed to this report.

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