The US Department of the Treasury announced new sanctions on nearly 300 individuals and businesses connected to Russia’s war in Ukraine, accusing Moscow of an illegal use of chemical weapons against Ukrainian forces.
On May 1, US officials unveiled measures targeting entities based in China and Hong Kong, as well as hundreds of third-country companies and individuals who assist Russia in obtaining critical inputs for weapons or defense-related production evading Western sanctions.
Treasury and other US government partners have issued extensive guidance and conducted global outreach to educate and inform about the risks of doing business with Russia, and Treasury will continue to take unilateral action as needed to disrupt Russia’s military-industrial supply chains, regardless of where they are located.
Despite imposing earlier sanctions, authorities targeted nearly 60 entities from various jurisdictions in Azerbaijan, Belgium, China, Russia, Slovakia, Turkey, and the UAE that allow Russia to import the technologies and equipment necessary for its military-industrial complex from abroad.
Specifically, five companies from the equipment supply network, such as Tulun International, Ultran EK, RG Solutions, and Juhang Aviation, contribute to the production of Russian attack drones.
The Chinese electronics supply network in Russia includes entities such as Wuhan Global Sensor Technology Co., IPM Limited, and Chengdu Keylink Wireless Technology Co. Shandong and Shvabe Opto are two Chinese enterprises that supply equipment to Russia’s military-industrial complex.
10 organizations from the machine tool procurement network in Belgium and Turkey (Sonatec, GIF, Osborne, Etasis, etc.); 5 enterprises from the electronics procurement network in Hong Kong, Slovakia, and the UAE.
The US targets over 100 organizations that currently or have previously worked in the Russian Federation’s technological, defense, and associated material, manufacturing, or transportation sectors.
In particular, 14 companies from the defense and related sectors of the Russian economy (TSKBA, Institute of Applied Physics, Lipetskii Mekhanicheskii Zavod, OKO Design Bureau, etc.) and 55 companies from the manufacturing sector of the Russian Federation (Zavod Spetsagregat, Mospress, Inno Beton 21, Radioizmereniya, Lassard, Zavod Poluprovodnikovykh Priborov, Fryazinskii Zavod Moshchnykh Tranzistorov, etc.).
44 entities from the technological sector of the Russian economy (Konstruktorskoe Byuro Farvater, Inkotekh, IBS IT Services, Orion, Cybersecurity Center LLC, Mezhdunarodnyi Klub Opticheskikh Innovatsii, etc.).
There are three companies from the Russian Federation’s transport sector (FPK Transagency JSC, Eastern Trading Transport Company, and Reil Trein Service).
Russia relies on external suppliers for cotton cellulose and its extremely combustible byproduct, nitrocellulose, which are critical explosive precursors required to continue creating gunpowder, rocket propellants, and other explosives.
The US targets large Russian importers of cotton cellulose, nitrocellulose, and critical inputs to nitrocellulose, such as cotton pulp, and two PRC-based suppliers who ship these commodities to Russia.
According to the US State Department news release, the US government recognizes Russia’s deployment of the deadly weapon chloropicrin against the Ukrainian military in violation of the Chemical Weapons Convention.
Russian troops’ desire to drive Ukrainian forces from their reinforced positions and gain tactical advantages on the battlefield likely motivated the deployment of chemical weapons, which is not an isolated incident.
As a result, the Treasury is also investigating three Russian organizations and two individuals who have purchased items for military institutes involved in Russia’s chemical and biological weapons programs.
In conjunction, the Department of State is designating three Russian government institutions involved in Russia’s chemical and biological weapons programs, as well as four Russian corporations that support such entities.
Following President Biden’s and G7 leaders’ commitments in February to limit Russia’s future energy revenues and impede Russia’s development of future energy projects, the Treasury is targeting two Russia-based entities involved in natural gas-related construction projects, Neftegazstroy and Aktsionernoe Obshchestvo Vnipigazdobycha.
The United States launched the last large-scale package of sanctions on Russia on February 23. On the eve of the second anniversary of Russia’s full-scale invasion of Ukraine and following Navalny’s murder, US President Joe Biden announced the imposition of more than 500 penalties against Russia as well as new export restrictions on almost 100 organizations.
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