Russia failing to by-pass sanctions on high-tech goods - U.S official
Reuters
Published Sep 02, 2022 13:13
By Jan Strupczewski
BRUSSELS (Reuters) - Russia is trying, but failing, to by-pass Western sanctions on high-tech goods for military purposes and its energy sector, and it is struggling to obtain international funding, U.S. Sate Department sanctions coordinator James O'Brien said on Friday.
Europe, the United States, Canada, Japan and Britain have imposed a slew of sanctions on Moscow following its invasion of Ukraine in February, blocking its access to its own foreign exchange reserves, to financial markets and advanced western technology, to reduce the Kremlin's ability to wage war.
"We see sanctions as working," O'Brien told reporters during a visit to Brussels for talks with European Union officials. "We know Russia is trying to obtain equipment and finance. We don't think it's doing well."
"We see a lot of substitution of lower-quality items: consumer-grade electronics for military-grade targeting and communications equipment," he said. "If they want to try to use it for a purpose it's not intended for, that's great do-it-yourself, but not a way to run a modern armed conflict or an economy."
Russian President Vladimir Putin says the West's economic "blitzkrieg" has failed though has admitted that damage has been done to the $1.8 trillion economy.
Some EU officials are concerned that China or India might help Moscow by-pass sanctions by selling dual-use equipment that could be used for military purposes, but O'Brien said Russia had tried and failed to obtain materiel this way.
"Russia is now in a situation of having to buy from unfamiliar vendors at uncertain prices and to obtain equipment of unknown quality. There is no way to run a modern economy on that basis," he said.
He said Western countries would seek to increase pressure on Moscow in the coming months, closing off potential loopholes in the sanctions regime and a particular focus on "choke points" in the Russian economy.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.