In a significant move to address Russia's aggression, President Joe Biden has signed an executive order that authorizes the United States to impose greater sanctions on Russian financial institutions. The new measures aim to crack down on the indirect support provided to Russia's military industrial complex, thereby depriving Russia of essential resources for its war arsenal.

A senior administration official stated that the executive order provides a vital tool to target financial institutions that continue to enable the shipment of goods to Russia's military industrial complex or maintain business ties with the country. The official emphasized that the order would expose foreign financial institutions to sanctions risk, thereby sending a clear message about the consequences of facilitating significant transactions related to Russia's military base.

Jake Sullivan, the National Security Adviser, commended the impact of previous rounds of sanctions, highlighting their success in undermining Russia's ability to replace equipment and technology necessary for aggression. Sullivan noted that these measures have not only diminished Russia's financial resilience but have also forced the country to seek supplies from rogue regimes. He emphasized that the sanctions have been carefully calibrated to avoid unintended harm to the global economy.

The latest executive order serves as an additional tool in the U.S.'s multi-pronged approach to weaken Russia. It specifically targets an evasion tactic employed by smaller financial institutions, allowing Russia to gain access to larger financial institutions and acquire materials for its military operations. These evasion tactics have made Russian sanctions a challenging cat-and-mouse game, prompting the United States to remain vigilant in its pursuit of Russian compliance.

One example of the "secondary" steps in the sanctions process mentioned by a senior administration official is the banning of Russian diamonds. The U.S. has already prohibited the import of Russian diamonds directly, but with this executive order, diamonds shipped from Russia to another country for processing, and then to the U.S., will also be banned.

While the officials stressed that the executive order is part of a broader strategy, which includes military and humanitarian aid for Ukraine, they also called on Congress to approve the requested supplemental aid package. The officials acknowledged that previous sanctions and export controls had a significant impact on Russia, yet highlighted how the Kremlin has established alternative channels through smaller companies.

The senior administration official underscored the crucial role played by the financial system in circumventing sanctions, stating that the ability to conduct financial transactions remains the choke point for these companies. The official expressed optimism that the executive order would push foreign banks, particularly those in Europe and the United States, to be proactive in preventing their partnerships from being used to facilitate the movement of goods supporting Russia's military industrial complex.

In a statement, Jake Sullivan emphasized the critical messaging aspect of the new sanctions, making it clear that anyone supporting Russia's unlawful war effort is at risk of losing access to the U.S. financial system. The executive order demonstrates the United States' unwavering determination to hold Russia accountable for its actions.

President Biden's executive order signifies a pivotal step in the ongoing effort to curb Russia's aggression. As the United States continues to exert pressure through targeted sanctions, international attention remains focused on the evolving dynamics between the two nations and their potential implications for regional stability.