US steps up Russia sanctions, placing threat of more sanctions on businesses partnering with Russia

The U.S. Treasury Department said Wednesday that it’s expanding the web of sanctions on companies and institutions supporting Russia’s war efforts in Ukraine, re-designating about 100 entities for sanctions and placing sanctions on 15 new entities.

A senior Treasury Department official said that under the sanctions any company that does meaningful business with parts of Russia’s military industrial complex would also face the risk of penalties. The official insisted on anonymity to preview the announcement on a call with reporters.

The official said that removal of the sanctions would require congressional notification. That step could potentially make it harder for the incoming Republican Trump administration to adjust and change sanctions without drawing public scrutiny.

Treasury is sanctioning the following Russian companies as being involved in this scheme: Herbarium Office Management, Atlant Torg, Sigma Partners, Tranzaktsii I Raschety, Arctur and Paylink Limited. It’s also sanctioning Russian national Andrei Prikhodko, the general director of Herbarium.

The official stressed that there are new sanctions on 15 companies related to Russia and China that have worked together to avoid existing sanctions.

There are also sanctions on China-based companies: Anhui Hongsheng International Trade, Qingyuan Fo Feng Leda Supply Chain Service, Heilongjiang Shunsheng Economic And Trade Development, Qingdao Hezhi Business Service, Xinjiang Financial Import And Export, Hangzhou Xianghe Trading, Shaanxi Hongrun Jinhua Trading, Fujian Xinfuwang International Trade, and Jilin Province Shunda Trading Company.
Separately, the Keremet Bank in Kyrgyzstan is being sanctioned for coordinating with Russian officials and a U.S. bank to evade sanctions.

Russia invaded Ukraine in February 2022, an assault that led to aggressive sanctioning by the U.S. and its allies and efforts by Russia and its partners to get around the financial restrictions. The Democratic Biden administration sees recent changes in the global oil market as making it easier to crack down on Russia’s oil revenues without hurting global supplies.
The Treasury Department announced last week that it was expanding sanctions against the Russian energy sector for its nearly 3-year-old war in Ukraine.