Taking Additional Steps With Respect to the Russian Federation's Harmful Activities

Dec 26, 2023

Summary

Allows sanctions on foreign banks that help Russia's military and bans importing Russian seafood and diamonds, even if they are changed in other countries.

What problem does this solve?

Russia continues to use its military and help from international banks to fund its harmful actions. This order makes it harder for Russia to get money and supplies by punishing foreign banks that help them and by stopping more Russian goods from being sold in the U.S.

What does this order do?

New sanctions on foreign banks

Authorizes the Secretary of the Treasury to punish foreign banks that help Russia's defense, technology, or other key industries supporting its military.

Expands ban on Russian imports

Bans the import of Russian fish, seafood, and diamonds, even if they have been processed or changed into other products in a different country.

Blocks U.S. accounts and property

Allows the Treasury to stop sanctioned foreign banks from using U.S. bank accounts or to freeze all of their property that is in the United States.

No prior notice for sanctions

Removes the need to give a warning before placing a person or company on the sanctions list, because they could move their money instantly to avoid it.

Who does this affect?

Foreign banks and financial institutions
U.S. importers of seafood and diamonds
Russian defense and technology companies

What is the real world impact?

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Weakens Russia's war effort

Aims to cut off money and supplies for Russia's military by punishing international banks that conduct business with its defense industries. This makes it harder for Russia to buy items needed for war.

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Closes trade loopholes

Stops Russia from earning money by selling goods like seafood and diamonds that are first sent to other countries to be processed. This closes a loophole that allowed these goods into the U.S.

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Pressures international banks

Forces banks in other countries to choose between doing business with the U.S. financial system or with Russia's defense sector. This increases Russia's economic isolation.

When does this start?

This order takes effect immediately as of December 22, 2023, with some import bans starting on dates to be set in the future.

Ban on certain processed Russian goods

The ban on Russian products like seafood and diamonds that are processed in other countries will begin on dates to be determined by the Secretary of the Treasury.