The next round of US sanctions will aim to “disarm Russia's war machine”

In a speech at the Peterson Institute of International Economics, Deputy Treasury Secretary Wally Adeyem promised to “disarm Russia's war machine piece by piece, disrupting its military industrial complex and supply chains.”

“As long as the invasion of Russia continues, our sanctions will continue. Even as we continue to apply rigorous financial sanctions against Russia and its key financial institutions, the next phase of our work will be to disarm Russia's war machine, piece by piece, disrupting its military industrial complex and supply chains,” he said.

He noted that Russia's war against Ukraine has taken much longer than the Kremlin anticipated, largely due to the heroic efforts of the Ukrainian people and the support provided by the West: “That delay means that Russia's army will need to be resupplied and rebuilt. To prevent that from happening, we continue our efforts to use sanctions and export controls to deny Russia the critical inputs it needs, targeting key sectors such as aerospace, electronics and others related to the defense sector.”

The Treasury official noted that Washington will also continue to work to penalize countries that attempt to evade sanctions and restrict Russian leader Vladimir Putin's ability to project power, although he did not provide details on the type of sanctions or targets being considered.

US Treasury Secretary Janet Yellen will this week ask her counterparts in major economies to increase economic pain in Moscow over its invasion of Ukraine.

The consequences of the war and the impact on the global economy will be key topics for discussion during the spring meetings of the IMF and the World Bank, which began on Monday.

“The secretary believes that the Russian invasion of Ukraine has demonstrated the need for the world's largest economies to unite to defend international order and protect peace and prosperity,” the Treasury official told reporters.

“It will use this week's meetings to work with allies to continue our united efforts to increase economic pressure on Russia while mitigating spillover effects.”

The IMF and the World Bank have warned of the devastating costs that war is imposing on the world economy, especially through rising energy and food prices at a time of high inflation.

Western sanctions on Moscow have contributed to price pressures, which are affecting the poorest countries the most.

While Yellen is “deeply concerned” about the impacts, “we are firm in our determination to hold Russia and its leaders accountable, and we have imposed crippling sanctions,” the official said.

Boicot a Rusia

While Yellen will participate in key meetings this week, especially the opening session of the G20 focusing on the consequences of the Russian invasion, he will not attend other sessions if Moscow officials are included, the Treasury official said.

She will make it clear that “the benefits and privileges of the world's major economic institutions, which we helped to create after (World War II), are reserved for countries that demonstrate respect for the basic principles that underpin peace and security around the world,” said the Treasury official.

Russian finance officials are expected to participate remotely in Wednesday's G20 meeting, which is led by Indonesia this year. Other officials from the world's major economies could also boycott the sessions, a French source told AFP last week.

US President Joe Biden has proposed to expel Russia from the G20.

Yellen will meet with Ukrainian Prime Minister Denys Shmyhal and “reiterate the Biden administration's strong support for the people of Ukraine as they defend their lives and their country,” according to the Treasury.

Adeyemo will meet with Ukrainian Finance Minister Sergii Marchenko on Thursday.

(With information from AFP)

Keep reading: