U.S. Treasury Expands Sanctions to Limit Russian Military Production

The U.S. Treasury Department announced today, Wednesday, that it has imposed sanctions on several companies in Hong Kong, including "V. Power Finance Security," for participating in the transfer of gold produced by a Russian mining company that is already under sanctions. The Treasury has imposed new sanctions on more than 300 entities and individuals, including dozens of Chinese suppliers, aimed at preventing Russia from acquiring the products and services it needs to enhance military production necessary for the war in Ukraine. U.S. officials expressed serious concerns regarding Russia's ability to purchase advanced semiconductors, optical equipment, and other goods necessary for the production of advanced weapon systems despite previously imposed sanctions. The sanctions target foreign companies and entities that include dozens of electronic device suppliers in China. However, this measure did not extend to imposing secondary sanctions on banks in China and other countries after the Treasury warned that transactions with Russian entities might prevent these banks from obtaining dollars. Nonetheless, the department stated that it has modified previously imposed sanctions on Russian banks, such as VTB and Sberbank, to include their branches and subsidiaries in China, India, Hong Kong, Kyrgyzstan, and other regions.