US plans new Russia export controls, sanctions on key industries

President Joe Biden’s administration is planning to impose new export controls and a fresh round of sanctions on Russia, targeting key industries a year after Vladimir Putin started his invasion of Ukraine.

The measures will target Russia’s defense and energy sectors, financial institutions and several individuals, according to people familiar with the matter who spoke on condition of anonymity. The US and allies are also expected to turn their focus to preventing the evasion and circumvention of sanctions — and disrupt support Russia receives from third countries. 

White House National Security Council spokespeople didn’t immediately comment.

US and European leaders are settling in for a conflict that may stretch far into the future, as Ukraine’s allies rush to deliver weaponry that would turn back intensified Russian attacks on the eastern and southern fronts — and enable a Ukrainian counteroffensive in the spring. 

As part of the increased efforts, the European Union may force banks and other institutions to report sanctioned Russian assets they hold as part a new package of measures the bloc aims to also approve next week. EU sanctions require the backing of all member states.

The EU package includes proposals to also impose restrictions on Iranian entities seen to be providing Russia with drones and other military supplies, as well as extensive trade controls on other goods used by Russia’s military, including technologies, components, heavy vehicles, electronics, and rare-earths.

Group of Seven nations and the EU are also looking to step up their cooperation on enforcing sanctions. The aim is to increase pressure on companies that may be helping Russia skirt the impact of sanctions, tighten existing measures, increase diplomatic pressure on nations that may aid Moscow, as well as explore future measures and penalties to disrupt the flow of military supplies.

One year into Russia’s war in Ukraine and with several sets of sanction packages now approved, there will be a renewed focus on enforcement of existing restrictions, including compelling nations that haven’t adopted the measures as well as companies meant to implement the measures, one of the people said.