Manufacturers and distributors need to improve compliance with Russia-related sanctions, the deputy secretary of the US Treasury has said.
American companies in particular need to pay more attention to their supply chains to ensure they are not complicit with Russia’s evasion of sanctions over Ukraine, Wally Adeyemo said in an interview with CNBC.
He said manufacturers of microelectronics and machine tools especially needed to step up compliance to help cut off supplies of “dual use” goods to Russia, including from Chinese producers.
Freight forwarders and distributors need to do the same and financial institutions need to look at their relationships with small and medium-sized banks in “countries of concern” because Moscow is looking for ways around US sanctions, Mr Adeyemo said.
Russia’s two biggest banks to open branches in annexed regions
Russia’s two biggest banks plan to open branches and offices in the regions of Ukraine that Moscow claimed to have annexed next month.
Sberbank chief executive German Gref said in Russia’s upper house of parliament the bank would be “present throughout the whole country’s territory”.
VTB chief executive Andrei Kostin said they would open two offices in Luhansk in July and had plans to start serving clients in Donetsk and the port city of Mariupol by the end of the year.
For context: Vladimir Putin illegally annexed Ukraine’s Donetsk, Luhansk, Kherson and Zaporizhzhia regions in September 2022, after what Ukraine and its Western allies branded sham referendums.
The move was condemned by many countries as illegal.
Russian forces only partly control the four regions.
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