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List of companies subject to secondary sanctions to be expanded four times

The U.S. Department of Treasury plans to expand the list of Russian companies affected by secondary sanctions almost four times — from 1,200 to 4,500, Kommersant reports, citing Financial Times sources.

According to the media outlet, financial organizations from third countries working with them will be considered «as working directly with the military-industrial base» of Russia.

It is specified that the decree on secondary sanctions was signed at the end of 2023.

«A new set of measures will widen a White House executive order that in December gave the Treasury the authority to apply secondary sanctions on foreign financial institutions if they were found to have acted for, or on behalf of, any of about 1,200 entities deemed by the U.S. government to be part of Russia’s defence sector. After this week’s change, announced on Wednesday, that number will rise to more than 4,500 and will encompass almost all Russian entities that have already been sanctioned, even if it was for reasons other than direct support of the war in Ukraine. They include banks such as Sberbank and VTB,» Kommersant quotes Financial Times.

U.S. officials believe that as a result of December’s executive order, banks in third countries have become reluctant to deal with high-risk Russian customers.

Financial Times

Earlier, Financial Times and Bloomberg already reported that the United States is increasing pressure on China and is ready to impose sanctions against local companies due to the ongoing cooperation between Beijing and Moscow. Wally Adeyemo, deputy secretary of the U.S. Treasury Department, called for Chinese businesses to be given a choice: either they stop supplying dual-use goods to Russia or representatives of influential Chinese business circles are deprived of access to Western markets.