Russia is trying, but failing, to bypass western sanctions on high-tech goods for military purposes and its energy sector, and it is struggling to obtain international funding, US State Department sanctions co-ordinator James O'Brien said on Friday.
Europe, the US, Canada, Japan and Britain imposed a series of sanctions on Moscow following its invasion of Ukraine in February, blocking its access to its own foreign exchange reserves, financial markets and advanced western technology to reduce the Kremlin's ability to wage war.
“We see sanctions as working,” Mr 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 $1.8 trillion in damage has been done to the economy.
Some EU officials are concerned that China or India might help Moscow bypass sanctions by selling dual-use equipment that could be used for military purposes, but Mr 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.
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Witanhurst is located in Highgate Village above Hampstead Heath, London. Photo: Keith Newformula -
London neighbourhoods favoured by Russian owners are Belgravia, Knightsbridge, Chelsea, Hampstead and Highgate, the wealthiest areas of the capital. Getty Images -
The Russian billionaire Andrey Guryev owns Witanhurst, the second largest private residence in London after Buckingham Palace, and has 65 rooms, 25 bedrooms and a ballroom. Getty Images -
Witanhurst was bought by the Guryev family through an offshore company called Safran Holdings, located in the tax haven of the British Virgin Islands, for £50 million in 2008. Getty Images -
Russian billionaire Andrey Melnichenko in Moscow, Russia, in February 9, 2018. Reuters -
The 118-metre superyacht belonging to Mr Melnichenko anchored in the port of Ras Al Khaimah. AP -
Mr Melnichenko was slapped with sanctions by the US Treasury Department on Tuesday. AP -
'Motor Yacht A' is seen moored on the River Thames beside the 'HMS Belfast' in London in 2016. Reuters -
'Motor Yacht A' is seen near the harbour in Monaco on May 4, 2017. Reuters -
The superyacht belonging to Russian billionaire Andrey Melnichenko, which has been sequestered by Italian police, is seen at the port of Trieste, Italy, on March 12, 2022. Reuters -
Mr Melnichenko's sailing yacht in Trieste, Italy, on March 10, 2022. It is the largest private sail-assisted motor yacht in the world. AFP -
Russian oligarch Dmitry Pumpyanskiy. Photo: Kremlin.ru -
Russian President Vladimir Putin with Mr Pumpyanskiy in July 2014. Photo: Kremlin.ru -
The superyacht 'Alfa Nero' is owned by Andrey Guryev. Photo: Schnippchen -
The 'Alfa Nero' in the Port of Antibes on the French Riviera. Photo: Wikipedia
