Biden Boosts Ukraine with New Sanctions on Putin's Russia

President Joe Biden is imposing new sanctions that target Russia's military supply chain, the latest step by the United States to try to stop the flow of goods Russia imports for its war in Ukraine.

The sanctions in the new executive order to be signed on Friday will focus on international financial institutions that facilitate the sale to Russia of semiconductors and other technology used in drones and other weapons systems, two administration officials said.

The new sanctions come at a critical moment, with Ukraine in dire need of more Western military aid to defend itself after nearly two years of war following Russia's invasion in early 2022.

"Our overall goal here is to put sand in the gears of Russia's supply chain," said a senior administration official, who spoke on background to preview the new action.

The U.S., the European Union and other allies have hit Russia with broad-ranging economic sanctions and export controls since the start of the war.

But Biden's latest executive order will create new secondary sanctions intended to crack down on banks and other financial firms that "wittingly or unwittingly" allow companies to sell banned goods to Russia, the official said.

"Step Forward"

"We do see this as a significant step forward" in curbing Russia's ability to circumvent sanctions and export controls, a second administration official said.

The move by the U.S. comes days after the EU adopted its 12th round of sanctions against Russia. The EU package included an import ban on Russian-origin diamonds and separate measures to tighten existing sanctions against Moscow.

White House officials argue the sanctions regime has been effective in crippling the Russian economy and reducing Russia's access to the goods it needs for weapons production.

Russia's defense spending rose by nearly 75 percent in the first half of 2023, while revenue declined 40 percent overall this year due to a price cap on Russian oil exports, the senior Biden administration official.

"Russia is increasingly isolated in global economic trade," the official said.

Still, Russia has found ways to minimize the impact of Western sanctions and continue carrying out the war in Ukraine, primarily by seeking alternative sources to meet its military needs. Newsweek revealed earlier this year that Russia uses a complex web of global trade to evade export controls and import technology for weapons from dozens of companies in countries that include the U.S.

Earlier this year Russia and North Korea reached an arms deal, and North Korea delivered up to 1,000 containers of munitions and other equipment to Russia in the fall, according to a U.S. intelligence assessment. Russia has also turned to Iran for help manufacturing drones it uses on the battlefield in Ukraine.

President Vladimir Putin of Russia said in an appearance this week that Russia now has momentum in the war after a failed Ukrainian counteroffensive earlier this year.

"All attempts by the West to deliver us a military defeat, a strategic defeat, were shattered by the courage and fortitude of our soldiers, the growing might of our armed forces and the potential of our military industries," Putin said.

The Russian leader's remarks came as Congress continued debating a spending package that would provide additional security assistance for Ukraine and Israel, as well as funding for border security along the U.S-Mexico border.

Lawmakers left Washington this week for their holiday break without reaching a deal after talks stalled over disagreements on border policy.