A new wave of sanctions by the US is focused on Russia's military-based supply chains, according to a report.

The United States has increased sanctions on Russia to weaken its war efforts in Ukraine and disrupt its international supply chains, according to a report by Marine Insight. The report states that the sanctions affect more than 400 individuals and companies across Central Asia, China, Russia, Turkey and the UAE.  

It is believed that the entities targeted have assisted Russia to evade sanctions and strengthen its military capabilities. These entities include companies that “ship machine tools and microelectronics to Russia.” 

The report notes that Russia has “transformed its economy into a tool in service of the Kremlin’s military-industrial complex” and that “123 entities, comprising 42 Chinese and 63 Russian entities, have been added to the U.S. export control list, mandating permits for supplies transported to these companies.” 

The article will not only be of interest to marine underwriters. Energy underwriters as well as marine underwriters will also note that the sanctions target: “Russia’s energy sector, the Arctic LNG 2 project, and other companies involved in future energy projects in Russia. It involves companies like UAE-based White Fox Ship Management, which recently purchased tankers to transport liquefied natural gas (LNG).” 

It may also be of interest to casualty (re)insurers and corporates risk managers in general that the Treasury Department has warned “foreign banks who continue to conduct transactions with Russia’s war economy may face restrictions from the dollar-based financial system.”