US companies will be directly warned not to evade Russian sanctions – #companies #warned #evade #Russian #sanctions

WASHINGTON, February 17 (Reuters) – USA Deputy Finance Minister Wally Adeyemo, Washington Russia imposed on Russia over the war in Ukraine at a time when it is trying to further suppress its economy USA will directly warn companies not to evade sanctions.

Speaking to Reuters on the eve of the first anniversary of Russia’s invasion of its neighbor on February 24, Adeyemo United Arab Emirates, Iran, Turkey and noted his special concerns about the evasion of sanctions by countries close to Russia.

“We will go directly to their companies and make it clear to them that you have a choice,” Adeyemo said.

“You can continue the work that will benefit Russia and give them financial support, but later Europe economy, USA to the economy and the Great Britain you risk losing access to the economy – that’s your choice.” he said. “We are ready to take these measures.”

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The United States and its allies, including Europe Union and Great Britain, of Ukraine imposed sanctions on Russia after its invasion and has continued to increase pressure ever since. Among the targets of Washington’s sanctions Russia President Vladimir Putinfinancial sector and oligarchs.

Adeyemo said the focus of the fight against sanctions evasion through the use of sanctions, export controls and other means is both commercial and military It said it will focus on manufacturing products, construction and dual-use items with applications.

“For most of these companies, for most of these individuals, it’s a very easy choice,” Adeyemo said.

Adeyemo said that Washington and the United States, Great Britain, Europe and will contact banks in Japan and ask them to warn their customers that they may lose access to financial institutions if they are found to be evading US sanctions.

Comments Russia comes amid signs that its economy has not been hit as hard by western sanctions as expected.

The International Monetary Fund last month forecast that Russia’s economy would expand by 0.3% in 2023, after contracting by 2.2% in 2022. In April, it initially forecast a 8.5% drop in 2022 and a further 2.3% drop this year.

DISRUPTION OF THE ECONOMY

The US Treasury said last week that the United States would focus on cracking down on intermediaries and third-country providers that help Russia evade Western sanctions in the coming months.

Brian Nelson, the Treasury’s senior sanctions official, on Jan. 30 Turkey and to the United Arab Emirates trip warned that countries and businesses could lose access to G7 markets if they do business with entities subject to US restrictions.

Adeyemo noted that when Washington began punishing Russia with sanctions, it did not expect the global corporate response to the war to be strong. Companies have pulled out of Russia, even in non-sanctioned sectors, amid calls from stakeholders and concerns about the risks of doing business in the country.

However, he emphasized that the United States European Union and other sanctions and export controls have played a key role in trying to hold Russia accountable. “Russia’s economy is very small compared to our coalition and is shrinking due to the measures we take.”

President Edward Fishman, who worked on sanctions against Russia at the State Department during Barack Obama’s administration, said that although the threat of sanctions could not deter Russian President Vladimir Putin, the measures would affect Russia’s economy and military helps to exceed its potential.

“I think there were elements of it that were successful, but I wouldn’t say they were triumphant,” said Fishman, now a professor at Columbia University, adding that the biggest success was the unity between the United States. and its allies are trying to target Russia.

Reporting by Daphne Psaledakis and Andrea Shalal Editing by Michelle Nichols and Diane Craft

Our standards: Thomson Reuters Trust Principles.

2023-02-18 01:21:42
Source – reuters

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