Ukraine war: US at G7 reveals sanctions list targeting hundreds of entities for helping Russia’s invasion

Measures taken by State, Treasury and Commerce departments take aim at three companies from mainland China and five from Hong Kong
Sanctions show US will ‘stand with Ukraine for as long as it takes’, says top diplomat Antony Blinken

US-China relations

Bochen Hanin Washington

Published: 6:15am, 20 May 2023

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The US on Friday formally launched new sanctions naming hundreds of entities in Asia, Europe, North America and the Middle East – including three from mainland China and five from Hong Kong – as part of a coordinated Group of 7 effort to cripple Russia’s ability to continue its war against Ukraine.

The measures by the US State, Treasury and Commerce departments are designed to implement commitments made at the G7 leaders’ summit in Hiroshima, Japan, which US President Joe Biden is attending.

The actions “demonstrate our shared resolve to hold Russia accountable for its mounting atrocities in Ukraine”, US Secretary of State Antony Blinken said in a statement.

“The United States will continue to stand with Ukraine for as long as it takes.”

The State Department designated or identified as blocked property more than 200 individuals, companies, vessels and aircraft.

Its sanctions targeted parties across Russia’s defence, technology, energy and metals and mining sectors, including those involved in sanctions circumvention and evasion.

Beijing Lucheng Weiye Technology Development and its China-based subsidiary were designated for supporting SMT-iLogic, a Russian-based tech company involved in procuring foreign technology for the manufacture of Orlan drones.

Hong Kong-based Asia Pacific Links, a microelectronics supplier, and Macau-based Novo Blockchain Consultoria were designated, respectively, for supporting SMT-iLogic and another Russian entity involved in Orlan drone manufacturing.

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Hong Kong-based IPS Pacific and its China-based subsidiary were sanctioned for being linked to a Russian national who served as a leader of Asia Pacific Links.

Some of the State Department’s sanctions – targeting, for example, those involved in the theft of grain from Ukraine and those involved in the unlawful transfer of Ukrainian children – were meant to promote accountability.

Meanwhile, the Treasury Department sanctioned 22 individuals and 104 entities with touchpoints in more than 20 countries or jurisdictions. Its sanction targets included Russian technology and electronics importers as well as energy educational and research institutes.

The US sanctions were revealed as the G7 leaders meet in Hiroshima, Japan. Photo: Ministry of Foreign Affairs of Japan/dpa

Three Hong Kong-based entities – Welmart Group, Kraverton Construction and Development and Gold Miles – were designated on Friday by Treasury for being owned or controlled by individuals involved with managing or transferring Russian nationals’ wealth.

Also on Friday, the Department of Commerce added 71 entries to its entity list: 69 from Russia and one each from Kyrgyzstan and Armenia. The basis was primarily for providing support to Russia’s military and defence sectors.

Both Commerce and Treasury introduced rules expanding authorities to target new sectors of Russia’s economy and sever Russia’s access to new products and categories of services.

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The two departments on Friday released their second joint alert with details of evasion classifications and transnational and behavioural “red flags” to urge and support continued vigilance by US financial institutions against Russian export control evasion.

The G7 leaders on Friday released a joint statement on Ukraine affirming their commitment to a “comprehensive, just and lasting peace in Ukraine”.

The summit concludes on Sunday, when the leaders’ joint communique will be issued. The official statement is expected to convey “a historic degree of unity across the G7” on a variety of issues, including China.