New US sanctions target Russian gold imports, defense industry

The United States imposed sanctions against more than 100 targets on Tuesday (28 June) and banned new imports of Russian Gold. This was in response to commitments made this week by the Group of Seven leaders to further punish Russia for its invasion of Ukraine.

According to the US Treasury Department, sanctions were imposed on 70 entities and 29 individuals in order to prevent Russia from developing and deploying weapons and technology.

This move will freeze any U.S. assets belonging to those named and ban Americans from dealing with them.

Janet Yellen, Treasury Secretary, stated in a statement that "Targeting Russia’s defense industry will degrade Vladimir Putin's capabilities, further impede his war on Ukraine, which has already suffered from poor morale and broken supply chains and logistical failures."

This latest US sanction is one of many that have been imposed on Moscow since the invasion of Ukraine.

Rostec, Russia’s state-owned defense and aerospace conglomerate, was subject to new sanctions. According to the Treasury, Rostec's management umbrella encompasses more than 800 entities in a wide range sector. All entities that Rostec owns directly or indirectly are now blocked.

The Treasury stated that United Aircraft Corporation (UAC), was sanctioned in order to "weaken Russia’s ability to continue its aerial attack on Ukraine."

UAC is the Russian manufacturer of Sukhoi and MiG fighter jets. These planes are also flown by U.S. Allies, including NATO members. Rostec owns the majority.

Tupolev was also given this designation. He is the Russian designer of strategic bombers and transport planes.

Irkut Corp was targeted along with several subsidiaries of other Russian aerospace companies. It is an aircraft manufacturer affiliated to the UAC.

The Treasury also identified 20 entities that produce, service and maintain military electronic gear under the Rostec-owned Ruselectronics electronics company.

USA imposed sanctions against Russia's largest truck maker, Kamaz (KMAZ.MM), claiming that its trucks were seen carrying missiles and Russian soldiers during the conflict in Ukraine. It listed nine subsidiaries of Kamaz as a publicly traded company that is less than half owned by Rostec.

U.S. imports from Russia-origin gold were banned. Only gold that was not located in Russia before Tuesday has been allowed to enter the United States. Russia is the country with the largest non-energy export, producing around 10% of all the global gold production each year.

The Russian central bank has made gold a key asset. However, it has been restricted from accessing certain assets abroad due to Western sanctions.

Other people named Tuesday include those involved in sanctions evasion and conflict as well as many current and former officials of the two self-declared separatist territories in Ukraine's Donbas - the Donetsk People's Republic (and the Luhansk People's Republic).

According to the Treasury, Tuesday's sanctions will be imposed by the State Department against 45 entities and 29 individuals, as well as Russian military units. Visa restrictions will be imposed on more than 500 Russian military officers and other officials.

Share this article: