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New U.S. sanctions target Russian gold imports, defense industry

Commodities Jun 28, 2022 12:33PM ET
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2/2 © Reuters. FILE PHOTO: Plastic letters arranged to read "Sanctions" are placed in front the flag colors of U.S. and Russia in this illustration taken February 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo 2/2

By Daphne Psaledakis and Michelle Nichols

WASHINGTON (Reuters) -The United States on Tuesday imposed sanctions on more than 100 targets and banned new imports of Russian gold, acting on commitments made by the Group of Seven leaders this week to further punish Russia over its invasion of Ukraine.

The U.S. Treasury Department said it imposed sanctions on 70 entities, many of which it said are critical to Russia's defense industrial base, as well as 29 people in an effort to hinder Russia's ability to develop and deploy weapons and technology.

The move freezes any U.S. assets of those designated and generally bars Americans from dealing with them.

"Targeting Russia's defense industry will degrade (Russian President Vladimir) Putin's capabilities and further impede his war against Ukraine, which has already been plagued by poor morale, broken supply chains, and logistical failures," Treasury Secretary Janet Yellen said in a statement.

The U.S. action is the latest in several rafts of sanctions targeting Moscow since its Feb. 24 invasion of Ukraine.

Fresh sanctions were imposed on Rostec, Russia's state aerospace and defense conglomerate. The Treasury said Rostec's "management umbrella includes more than 800 entities across a wide range of sectors" and that all entities owned 50% or more, directly or indirectly, by Rostec are blocked.

United Aircraft Corporation (UAC) was sanctioned to "weaken Russia's ability to continue its aerial assault on Ukraine," the Treasury said.

UAC makes Russia's MiG and Sukhoi fighter jets - planes that are also flown by U.S. allies including some NATO members - and is majority-owned by Rostec.

Tupolev, maker of Russian strategic bomber and transport aircraft, was also designated.

PLANES, TRUCKS, GOLD

Irkut Corp, a UAC-affiliated aircraft manufacturer that builds many of the Sukhoi Su-30 fighter jets used by Russia in Ukraine, was targeted, as were several of its subsidiaries and other companies in Russia's aerospace sector.

The Treasury also named some 20 entities that develop, produce and service military electronics gear under the Rostec-owned Ruselectronics electronic company.

The United States slapped sanctions on Russia's largest truck manufacturer, Kamaz, saying its vehicles have been seen carrying missiles and Russian soldiers throughout the Ukraine conflict. It named nine subsidiaries of Kamaz, a publicly-traded company less than 50% owned by Rostec.

U.S. imports of Russian-origin gold have been banned, with the exception of gold located outside of Russia prior to Tuesday. Russia produces around 10% of the gold mined globally each year and it is the country's biggest non-energy export.

Gold is a crucial asset for the Russian central bank, which has faced restrictions on accessing some of its assets held abroad because of Western sanctions.

Others designated on Tuesday include people involved in sanctions evasion, the conflict, as well as several current and former officials in the two self-declared breakaway territories in Ukraine's Donbas region - the Donetsk People's Republic and the Luhansk People's Republic.

The State Department on Tuesday is also imposing sanctions on 45 entities and 29 people, including Russian military units, the Treasury said. Over 500 Russian military officers will also be hit with visa restrictions, as will other officials.

New U.S. sanctions target Russian gold imports, defense industry
 

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Comments (2)
Adamo Nals
Adamo Nals Jun 28, 2022 12:50PM ET
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Correct. Not one of these sanctions matter when you’re pulling in over $1 billion a day in cash from oil. And many other things. This does absolutely nothing except make President Putin even angrier. And his aggression will be take it out on you ukrainian people sadly
Ronald Johnson
Ronald Johnson Jun 28, 2022 12:50PM ET
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Angrier? He’s ***women and children every day! Do you think we should just sit and watch the “barbarism” little wimps because we don’t want to make Putin angrier??? It must be nap time
sam bit
sam bit Jun 28, 2022 12:50PM ET
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where you were when us killed millions of people in Iraq..... big list or you forgot WikiLeaks
choi borsa
choi borsa Jun 28, 2022 12:37PM ET
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all the sanctions won't make any changes the world is bigger than a view western countries.
 
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