Biden moves to block Trump from lifting Russia sanctions

Days before the end of his term, US President Joe Biden utilized a 2017 law to make it more difficult for future administrations to lift primary sanctions against Russia. Under the new rules, Congress will have the authority to block the lifting of sanctions, and secondary sanctions will become mandatory.

The regulations, announced by the US Treasury Department on Wednesday, added approximately 100 leading Russian financial, energy, and defense companies to a new sanctions list. Among the companies included were major arms manufacturer Tactical Missile Weapons and the Moscow Stock Exchange. If the executive branch requests the removal of any company from the list, Congress must approve the decision within 30 days. If Congress does not approve, the decision will be blocked.

According to the Financial Times, these regulations were prepared based on the Countering America’s Adversaries Through Sanctions Act (CAATSA), which was adopted after Russia’s interference in the 2016 US elections. This move aims to safeguard the Biden administration’s efforts to reduce Russia’s defense industry capacity against potential attempts by Donald Trump to roll back sanctions. Additionally, linking sanctions to CAATSA will limit the flexibility of future administrations in implementing existing sanctions.

The new rules also mandate the imposition of secondary sanctions on companies that knowingly support sanctioned entities.

US Deputy Treasury Secretary Wally Adeyemo stated, “Today’s actions undermine the Kremlin’s ability to circumvent sanctions and gain access to the products it needs to produce weapons for the war in Ukraine.” According to Adeyemo, the expansion of secondary sanctions will restrict Russia’s access to revenue and critical products. US officials emphasized that the move sends a clear warning to all actors involved in the sanctions avoidance ecosystem.

An official told the Financial Times, “Those who cooperate with those on the sanctions list should not take risks.”

The US also sanctioned 15 organizations that established “regional clearing platforms” in Russia and China to facilitate cross-border payments for sanctioned goods.