Zooming in on the simmering military unrest in Ukraine, which has encompassed attacks on the country’s dreary Black Sea ports and ensuing threats to shipping dynamics in the region, the United States is stepping up to the plate with a fresh round of sanctions.
Nuclear Economic Blow
The U.S. Departments of Treasury and State on Thursday unpacked an extensive arsenal of additional companies perceived as culprits. The bullseye was not only drawn on shipping interests but also extended to technology suppliers, moneyed importers, audacious developers, munitions, and mining giants, as well as the financial infrastructure and companies skating around sanctions.
Implicating Russian Shipping
One significant player on this sweeping blacklist is the Russian shipping company, Sakhalin Shipping Company (SASCO). The U.S. State Department has brought SASCO to the limelight for its alleged role in fueling the Russian onslaught in Ukraine.
They exposed SASCO’s support for future energy projects through the delivery of construction materials and equipment along the Northern Sea Route. Moreover, SASCO’s apparent involvement in expanding Russia’s trade routes to new jurisdictions came under fire, especially as the effects of Russia’s invasion of Ukraine reverberate through its economy.
SASCO’s Expanding Empire
SASCO, accompanied by its two subsidiaries and a fleet of 14 ice-class vessels, has found itself in the undesired company of 120 organizations and individuals now ostracized by the U.S. government. The subsidiaries tied to SASCO are OOO MPL Vanino Sakhalin, which steers the bout of maritime transport equipment leasing, and AO Vostok Treid Invest, enablers of the buying and selling of real estate for SASCO.
The Ultimate Aim
According to the U.S. State and Treasury departments, the purpose of these broad-reaching sanctions is to hamstring Russia’s access to essential military products, shrink Moscow’s revenue from the metals and mining sector, and capsize future energy capabilities. The sanctions also aim to bar Russia’s access to the international financial system and starve it of G7-produced technology for its technology, aerospace, and defense sectors.
Wally Adeyemo, Deputy Secretary of the Treasury, was firm in his position, stating, “As long as Russia continues to wage its unprovoked and brutal war against Ukraine, we will impose sanctions to deprive Russia of the technology it needs and disrupt the Russian arms industry’s ability to resupply.”
In the Crosshairs
Russian conglomerate Delo Group, which seized control of SASCO last year, posits that SASCO performs two-thirds of all Russian domestic sea carriages and is instrumental to the expansion of navigation along the NSR.
Condemnation and Resolve
Of course, Russia was swift to disparage the latest wave of sanctions. The Russian Embassy in Washington noted that such “destructive actions” only kindle a brighter resolve in Moscow for its pursuit of financial and technological sovereignty, and an unquenchable thirst to strengthen defense capabilities.
