Page 19 - RusRPTFeb24

The issue stems from Executive Decree 14114 signed by U.S. President Joe Biden, enhancing the U.S. Treasury's authority to sanction non-U.S. companies for supporting Russia's defense industry. This decree holds banks in third countries accountable for any sanctioned goods or services in the supply chain.
Banks are increasingly cautious due to rising risks of "secondary sanctions." U.S. officials are actively communicating new requirements to authorities in third countries, contributing to banks demanding more documents and, in some cases, refusing operations to avoid potential sanctions.
U.S. Treasury Deputy Secretary Wally Adeyemo is expected to travel to Europe and Japan this month to encourage banks to tighten sanctions compliance.
Global Ramifications:
The banking issues in China and Turkey may extend to other regions. U.S. officials are actively engaging with banks worldwide to ensure compliance with sanctions, indicating a broader effort to tighten restrictions.
In the oil market, the U.S. recently added a United Arab Emirates transport company, Hennesea Holdings, and 17 of its tankers to the sanctions list for transporting Russian crude priced above the $60 per barrel cap imposed by the G7.
Implications:
The objective of these measures is to impede the flow of sanctioned goods into Russia, limiting its military capabilities. However, the consequences extend beyond geopolitical considerations, affecting transaction costs, supply chains, and potentially leading to higher import prices, fueling inflation.
The current challenges highlight the evolving landscape of sanctions, emphasizing their effectiveness and the global commitment to maintaining pressure on Russia.
2.7 Kremlin-approved liberal candidate becomes opposition hero
Only one anti-war candidate is vying for the right to get on the ballot paper for the March 2024 presidential election — Boris Nadezhdin, a veteran of second-tier Russian politics who served as an aide to Kremlin insider Sergei Kiriyenko 25 years ago. Everybody understands that Nadezhdin is a Kremlin spoiler, who will only be permitted to run as a way to demonstrate how negligible support for the opposition is, as the Kremlin sees it. Nonetheless, the queues of people waiting to sign petitions in support of Nadezhdin made waves on social media over the weekend and he has attracted support from
19 RUSSIA Country Report February 2024 www.intellinews.com