Treasury No. 2 warns of increased Russian sanctions enforcement

Deputy Secretary of the Treasury Wally Adeyemo said in remarks delivered Tuesday the agency and its international counterparts are “planning to launch a renewed effort to rigorously enforce the sanctions and export controls we’ve already put in place” regarding Russia. The Treasury is working with its allies in the G7 and European Union to combat sanctions evasion attempts by those “willing to put the people of Ukraine at risk to turn a quick profit,” said Adeyemo.

“We will use all of our economic tools to give countries, companies, and individuals a choice: to do business with a coalition representing half of the global economy or to provide material support to Russia,” he said. “We will use sanctions, export controls, and other tools to prevent the Kremlin from using the money they have to purchase the weapons and goods they need to fight this war of choice.”

Adeyemo said he expects the United States to increase information sharing with its allies regarding restrictions against Russia. The United States has played a leading role in the Russian Elites, Proxies, and Oligarchs Task Force, which includes representatives from Australia, Canada, Germany, France, Italy, Japan, the United Kingdom, and the European Commission.

The focus of international activities to limit Russia’s spending ability has been directed at the country’s military funding. Russia’s largest banks have been sanctioned, along with some being removed from the SWIFT network. Adeyemo indicated the Treasury’s attention is now shifted toward new channels Russia is utilizing to support its war efforts, including repurposed manufacturing facilities to produce goods like chips for electronics.

The Treasury will also increase its scrutiny of countries it believes to still be supporting Russia, most notably its neighbors. Without specifying any particular jurisdictions, Adeyemo warned businesses of the potential ramifications to come.

“Officials from the U.S. and the governments of our coalition partners are … engaging with companies and banks in these jurisdictions to tell them directly that if they do not enforce our sanctions and export controls, we will cut them off from access to our markets and financial systems,” he said. “The cost of doing business with Russia in violation of our policies is a steep one, and companies and financial institutions should not wait for their governments to make the decision for them.”