On March 11, President Joe Biden issued an executive order that bans luxury goods headed to Russia. This includes vehicles, jewelry, high-end alcohol, and high-end watches. A fact sheet states that Russians import about $550 million worth of these goods a year.
New banking-related and financing restrictions have also been announced, as well as blocking sanctions on members of the Duma who sponsored legislation to recognize parts of Ukraine as independent republics. The new blocking designations will also target billionaire Yuri Kovalchuk and executives of banks that were previously sanctioned.
The Treasury Department will also develop guidance on sanctions to make clear that all U.S. persons must comply, whether the transaction is in traditional currency or cryptocurrency, such as bitcoin.
The U.S., along with G7 members from Canada, France, Germany, Italy, Japan, and the U.K. as well as the European Union, will also take steps to revoke Russia’s Most-Favored-Nation status in solidarity against Russia’s invasion of Ukraine.
“These actions will collectively ramp up pressure on Putin and build on the unprecedented package of economic sanctions and export controls the United States and over 30 countries have already imposed on Russia,” the Biden administration said.
If you have questions on how this may impact your business, or need assistance reviewing your transactions, reach out to Mohawk Global Trade Advisors.