US Imposes Sanctions On Chinese Companies Vital To Russia's Defense Industry

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by Tyler Durden
Wednesday, May 01, 2024 - 11:25 PM

The Biden administration and US Treasury on Wednesday unveiled nearly 300 new anti-Russia sanctions which especially target third party entities which are said to help Moscow in sanctions-busting activities.

"The almost 300 targets being sanctioned by both Treasury and the Department of State include sanctions on dozens of actors that have enabled Russia to acquire desperately needed technology and equipment from abroad," the Treasury Department said in a press release.

So-called dual-use items out of China are a key focus of the action, which is being hailed as one of "the most wide-ranging actions against Chinese companies so far in Washington's sanctions aimed at Russia." 20 companies based in China and Hong Kong were named.

Companies in Turkey, Belgium, Azerbaijan, Slovakia and the United Arab Emirates (UAE) are also targeted.

"Treasury has consistently warned that companies will face significant consequences for providing material support for Russia’s war, and the U.S. is imposing them today on almost 300 targets," Treasury Secretary Janet Yellen said.

It also marks the furthest reaching action that seeks to specifically degrade Russia’s military-industrial base, as well as its biological and chemical weapons programs. For example, companies involved in manufacturing precursor materials for Russia to make explosives are listed.

Last week during Secretary of State Antony Blinken's visit to China he warned about Beijing's support for Russia's war in Ukraine. "Russia would struggle to sustain its assault on Ukraine without China’s support," Blinken had claimed provocatively, while also asserting China is the "top supplier" of Russia's defense industrial base - albeit not in terms of lethal aid (but instead "dual use" technologies).

This support to Russia's defense industry additionally constitutes a "medium to long-term threat that many Europeans feel viscerally that Russia poses to them," Blinken had asserted.

Meanwhile, as Ukraine forces continue getting pushed back from frontline positions by the better-armed Russian force, hawkish threats out of Congress are getting more frantic...

He warned last week that the Biden administration stood ready to introduce more sanctions against China if dual-use goods and technologies continue to be sent to Russia, including things previously identified by Washington as problematic: semiconductors, machine tools, chemical precursors, ball bearings, and optical systems. Based on Wednesday's Treasury action it is clear that the sanctions were already being prepared even as Blinken was on the three-day trip, which including a meeting with President Xi.