US unveils new sanctions on Russia, targeting services, media and defense industry

The new measures were announced as leaders from the G7 group of industrialised democracies held a virtual summit with Ukrainian president, Volodymyr Zelenskiy in a show of solidarity.

They are primarily intended to close loopholes in the existing sanctions and to tighten the noose around the Russian economy by another few notches.

The new sanctions include:

*A ban on sales of US services to Russia, like accountancy and management consultancy

*No more US advertising or sales of broadcasting equipment to three Kremlin-controlled television stations

*Technology export bans including industrial engines, bulldozers and other items that can be used by Russian defence factories

*Visa restrictions on another 2,600 Russian and Belarusian individuals, including military officials, and executives from Sberbank and Gazprombank

In imposing a ban on services the US is falling into line with the UK, which made a similar announcement last week. The two countries provide the overwhelming bulk of services like accountancy and management consultancy to Russian corporations.

The Biden administration sees US service providers as potential tools Russia could use to sidestep the punitive measures already imposed.

Like the UK, the restrictive measures do not apply to lawyers, but the US official said that could change, and that Washington and London are coordinating their moves in that respect.

The new media sanctions will target three Kremlin-controlled propaganda outlets: Channel One, Russia-1 and NTV. American companies will no longer be allowed to sell equipment like video cameras or microphones to them, and US advertising on their channels will be banned. Last year, US companies bought $300m in advertising in the Russian market.

The new technology export bans on industrial items such as heavy engines and bulldozers are intended to have an impact on Russian war efforts by hitting the supply chain for defence manufacturers. The US claims that Russia two major Russian tank plants, Uralvagonzavod Corporation and Chelyabinsk Tractor Plant, have already been forced to halt production due to a lack of foreign components.

The 2,600 new visa restrictions on individuals include military officials and Russian proxies deemed to have played a part in the invasion and there will be a new visa policy which would apply automatically to military or proxy officials involved in human rights abuses.