US ready to impose sanctions against countries that allow Russian banks to open branches - FT
US flag (photo: Getty Images)
The US has warned countries that trade with Russia, reports the Financial Times. Such countries risk secondary sanctions if they allow Russian banks to open local branches, financing the supply of goods to the Russian military-industrial complex.
The move is aimed at closing the loopholes that Russia has used to circumvent sanctions, including finding ways to pay for dual-use goods needed for weapons in a covert manner.
In a commentary to the FT, US Deputy Treasury Secretary Wally Adeyemo said that Washington is now ready to pursue countries that allow Russian banks to open branches in their jurisdictions to circumvent Western sanctions. This will be the case even if the bank itself is not under sanctions.
“We will go after the branch they’re setting up, but also the other entities and the companies in your jurisdiction that work with them. It isn’t only a warning toward doing business with subsidiaries or branches of an already sanctioned institution,” Adeyemo said.
The FT recalled that in December 2023, the administration of US President Joe Biden issued a decree according to which foreign financial institutions were warned that they were at risk of secondary sanctions. The reason for this may be the implementation or facilitation of transactions related to the Russian military-industrial complex.
Yesterday, August 23, on the eve of Ukraine's Independence Day, the United States expanded sanctions against Russia. This time, they affected the defense and metallurgical sectors, as well as the supply of dual-use goods.
