New U.S. Sanctions Target Russian Defense Industry, Gold Imports

According to RFE/RL, The United States on June 28 imposed sanctions on 70 entities, including Russian defense firm Rostec, and 29 individuals in a move that it said aimed to "strike at the heart of Russia’s ability to develop and deploy weapons."

The new sanctions, which also ban imports of Russian gold, were announced by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and they implement agreements reached during the Group of Seven (G7) summit this week.

Treasury Secretary Janet Yellen said in a statement that the United States reaffirmed its commitment to work with partners and allies “to impose additional severe sanctions in response to Russia’s war against Ukraine.”

“Broad multilateral commitments and actions by G7 members this week further cut off the Russian Federation’s access to technology that is critical to their military,” Yellen said. “Targeting Russia’s defense industry will degrade [President Vladimir] Putin’s capabilities and further impede his war against Ukraine, which has already been plagued by poor morale, broken supply chains, and logistical failures.”

The sanctions on Rostec announced on June 28 build on previously announced sanctions against the state aerospace and defense conglomerate. The Treasury Department said that Rostec's "management umbrella includes more than 800 entities across a wide range of sectors" and that all entities owned 50 percent or more by Rostec are blocked.

This includes United Aircraft Corporation, the maker of Russia's MiG and Sukhoi fighter jets. The Treasury Department said this aims to "weaken Russia's ability to continue its aerial assault on Ukraine."

The ban on gold imports, which the Treasury Department said is Russia's biggest nonenergy export, was also agreed by Britain, Canada, and Japan during the G7 summit.

In addition to targeting Rostec and other industries critical to the defense sector, the sanctions take aim at military units and officers implicated in human rights abuses in Ukraine, the OFAC said.