US Announces New Sanctions Against Russia:: Targets 40 Defense Companies, Including Kh-31 Missile Manufacturers

JAKARTA - The United States and its allies on Thursday stepped up pressure on Moscow over its invasion of Ukraine, as Washington imposed new sanctions on dozens of Russian defense firms, hundreds of lawmakers, and the chief executive of the country's biggest bank.

The US Treasury also issued guidance on its website warning that gold-related transactions involving Russia could be subject to sanctions by US authorities, a move aimed at stopping Russia from evading existing sanctions.

"Our goal here is to methodically remove the benefits and privileges that Russia once enjoyed, as a participant in the international economic order," said a senior government official, speaking on condition of anonymity.

The United States and its allies have imposed several rounds of sanctions, including targeting the country's biggest lender and President Vladimir Putin, since Russian troops invaded Ukraine a month ago in the biggest attack on the European nation since World War Two.

Among the targets of the new sanctions are more than 40 defense companies, including the state-owned Tactical Missiles Corp and 28 associated companies, as well as their general directors, the Treasury Department said in a statement.

The Treasury Department said Washington's actions align with similar actions taken by the EU, UK, and Canada.

The Treasury said the conglomerate, which has been sanctioned by Britain, manufactures the naval systems and weapons Russia uses against Ukraine, including the Kh-31, a high-speed aerial missile that has been used extensively in the Moscow attack.

Other companies on the new list include manufacturers of ammunition for the Russian military, civilian and military helicopters, and drones that the Treasury said were originally designed for surveillance but have been "repurposed" and used against Ukrainian forces.

The Treasury also imposed sanctions on 328 members of the Duma, Russia's parliament, and Herman Gref, the head of Russia's biggest lender, Sberbank, whom the Treasury said was a close associate of Putin.

The United States said last month US banks should cut their correspondent banking ties, which allow banks to make payments between each other and move money around the world, with Sberbank, but not freeze its assets.

In addition, the United States on Thursday also targeted 17 board members of Sovcombank, which is also under US sanctions, and Gennady Timchenko, a longtime ally of Putin, the company and members of his family.

The official said the United States warned President Putin that it would face swift and severe consequences if he invaded Ukraine and they fulfilled the threat. The official noted that Russia was facing punishing inflation and economic suffering that would push it out of the world's top 20 economies.

"Russia will soon face an acute shortage of ideas, talent, and technology to compete in the 21st century, and Putin will experience a strategic failure of his own making," the official said.

Earlier this week, US National Security Adviser Jake Sullivan said earlier this week the United States would consult with its allies about Russia's inclusion in the G20 world's largest economic group.

The sanctions and their economic consequences could make those discussions easier, effectively ineligible for Moscow due to its shrinking economy.