US sanctions Russia’s Sistema and dual-use network

The US imposed sanctions Thursday on one of Russia’s largest publicly traded holding companies, Sistema PJSC, in a new package of restrictions also targeting firms in China, Turkey and the United Arab Emirates that are said to provide dual-use items for President Vladimir Putin’s war in Ukraine.

In addition, the Treasury Department sanctioned Sistema subsidiaries in Luxembourg, Russia and Singapore and said any entity in which Sistema has an ownership stake of 50% or more would be subject to blocking sanctions. Sistema was already sanctioned by the UK soon after Russia’s invasion of Ukraine. 

The sanctions were part of a broader package targeting 130 individuals and entities aimed at clamping down on Russia’s defense and technology sectors, as well as companies and people that help move goods through third countries and into Russia.

“Russia is dependent on willing third-country individuals and entities to resupply its military and perpetuate its heinous war against Ukraine,” Treasury Secretary Janet Yellen said in a statement. “Today’s actions demonstrate our further resolve in continuing to disrupt every link of Russian military supply chain, and target outside actors who would seek to support Russia’s war effort.”

Thursday’s announcement was the latest of hundreds of sanctions actions imposed by the US and its allies against Russia since the war began. The actions have severely hindered the Russian economy but have so far failed to turn the tide against Putin’s forces. Ukraine’s top commander told the Economist in an interview published Thursday that the fighting had reached a “stalemate” and Ukrainian forces weren’t expecting a breakthrough.

In China, Treasury sanctioned companies accused of sending Russia electronic components, including cameras and telecommunications equipment, as well as radar equipment for use in anti-aircraft missile systems.

Several companies and individuals in Turkey and the UAE were also sanctioned, including two Irish nationals working in the UAE’s financial services industry.