United States Imposes Sanctions on 400 Entities, Including Russian and Chinese Companies, for Supporting Russia’s Military Actions
Deputy Secretary of the Treasury Wally Adeyemo stated, “Russia has transformed its economy into a tool to support the Kremlin’s military industrial complex. Companies, financial institutions, and governments globally must ensure they are not aiding Russia’s military-industrial supply chains.”
Chinese Support for Russian Military
The Chinese Communist Party (CCP) has consistently aligned with Russian interests since the beginning of the Russia–Ukraine conflict, instructing state-run media to avoid negatively reporting on Russia and responding ambiguously to U.S. diplomats’ calls for China to respect other nations’ sovereignty.
Earlier this year, U.S. Secretary of State Antony Blinken raised concerns about the CCP supporting the Russian military during a meeting with CCP leader Xi Jinping. In response, a Chinese Foreign Ministry spokesperson urged the United States to “stop blaming China.”
On August 23, the Treasury and State departments identified and sanctioned multiple Chinese companies supplying the Russian military, including Hong Kong-based Smart Kit, which supplied chip-making machines to Russia’s Inzhiniring Grupp. Another company, Hong Kong-based Siliborn, provided electronic integrated circuits to a Russian robotics firm on a U.S. blacklist.
Other companies include Hong Kong- and China-based electronics firms sending various technological tools like machine tools, circuits, engines, and millions of dollars worth of other equipment to Russian companies involved in producing drones, chips, and other electronic devices for the military. Some of the Russian companies purchasing these materials were already on U.S. blacklists.
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One of the companies, Asia Material Solutions, has been identified as a front company for Russian intelligence, according to the State Department.
Sanctions on Switzerland and Turkey
Several Turkish and Swiss entities were also sanctioned. The State Department named Swiss Russian national Alexandre Orloff for procuring semiconductor-related equipment for the Russian military through Hong Kong and China-based companies he owned or partnered with.
Swiss national Anton Daniel Wyss was identified as a significant facilitator of Russian financial flows in Switzerland and Liechtenstein, assisting in concealing Russian ownership and investments in foreign ventures alongside Austrian nationals Alexander Franz Josef Lins and Stefan Anton Wolf.
Russian tech firm Promtekh, already on a blacklist, was found to have a supply chain involving French, Chinese, and Turkish firms collaborating to supply technology to the company.
Italian national Giulio Sfoglietti was involved in purchasing over $150 million in equipment and ammunition for the Russian military, working with a Turkish intermediary. Turkish national Hayri Tahirbeyoglu was recognized as the chair of a Turkey-based weapons and ammunition company that collaborated with Sfoglietti.
Economic Measures
The Treasury Department is also applying pressure on Russia’s financial sector by sanctioning payment software companies like Atol, Centre of Financial Technologies Group, and Diasoft.
Additionally, 30 companies in the Russian metals and mining industry received sanctions, including MMK, one of the world’s top steel companies and the largest iron and steel firm in Russia.
These sanctions, which were implemented just before Ukrainian Independence Day, demonstrate the United States’ commitment to supporting Ukraine post-G7 summit agreements.
