Today, President Biden will meet with G7 leaders and President Zelenskyy in Germany to continue our unwavering and united commitment to support Ukraine and to build on our unprecedented sanctions to hold President Putin accountable. The G7 issues a statement of support for Ukraine that includes significant new sanctions commitments to further strengthen our economic measures against Russia.
The US has mobilized more than 30 allies and partners around the world to impose drastic costs on Russia, and the US-led coalition continues to increase pressure on Putin. In just a few months, US exports to Russia, including critical technological inputs that Putin needs to maintain his military, have fallen by about 97%. Imports of Russian goods from around the world may drop by 40%. Factories across Russia are struggling to maintain production. Russia’s GDP is likely to shrink by double digits, inflation is rising above 20%, Russia is struggling to make bond payments, and Russia defaulted on its national debt for the first time in over a century.
Our actions continue to destroy critical components of Putin’s military-industrial complex, prevent the central bank from supporting foreign reserves in a struggling economy, and deprive Putin of the resources he needs to wage war and hold the kleptocracy accountable for his bad deeds. benefited. The effectiveness of our measures will only deepen over time to further isolate Russia from the global economy.
The United States is implementing significant commitments with the G7, including sanctions against hundreds of individuals and entities, adding to the more than 1,000 already sanctioned, and cracking down on tax evasion targeting multinational companies, which adds to the list of more than 300 entities. already in place; impose tariffs on Russia on hundreds of billions of dollars worth of Russian products, including:
Measures targeting Russian military production and supply chains. G7 leaders are harmonizing and expanding targeted sanctions to further limit Russia’s access to key industrial inputs, services and technologies produced by our economies, particularly those that support Russia’s arms industrial base and technology sector. The United States State Department and Treasury Department are aggressively targeting Russian defense supply chains, imposing blocking sanctions on major state-owned defense companies, as well as defense research organizations and dozens of other defense-related entities and individuals, and limiting Russia’s ability to replace the military equipment it has already lost during its brutal war against Ukraine.
Using tariffs on Russian goods to help Ukraine. Earlier this year, G7 leaders pledged to strip Russia of “most favored nation” trade status, which guaranteed low tariff rates for Russian goods sold globally. President Biden and other G7 leaders are seeking authority to use revenue raised through new tariffs on Russian goods to help Ukraine and ensure Russia pays the costs of its war. President Biden also announces that as a result of Congress’s revocation of Russia’s trade status in the United States, the United States will apply higher tariffs to Russia on more than 570 groups of Russian products worth approximately $2.3 billion. These measures limit Russia’s ability to obtain economic benefits from sales to the US market and are carefully calibrated to impose costs on Russia while minimizing costs to US consumers.
Restrictions on Russia’s participation in the world market and further crackdowns on circumvention attempts. G7 leaders have decided to limit Russian revenues, including from gold, which is Russia’s second largest export after energy. The United States is taking a number of important steps to fulfill these obligations. The US Treasury makes a decision to ban new gold imports into the US, which prevents Russia from participating in the official gold market. G7 leaders also commit to continuing the efforts of those engaged in evasion and backfilling activities. The U.S. Commerce Department is taking its first steps against companies engaged in backfilling activities in support of Russia, adding several companies around the world to a list of entities that will bar those companies from buying U.S.-sourced goods and technology, such as semiconductors. . State and Treasury are implementing blocking sanctions against individuals involved in aiding and abetting Russia’s evasion efforts. Commerce and Treasury jointly issue an alert to financial institutions to help identify potential export control violations.
Bearing the costs of those responsible for human rights abuses, including war crimes, profiteering and illegitimate powers. G7 leaders decide to impose sanctions on those responsible for human rights abuses, including war crimes, illegal exercise of power in Ukraine and Russian tactics to steal Ukrainian crops or otherwise profit illegally from the war. The U.S. Department of the Treasury and the Department of State apply blocking sanctions against private military companies operating in Ukraine, Russian military units believed to be involved in violations of human rights or international humanitarian law in Ukraine, and senior officials located in demarcated or restricted areas. In the hands of Russian forces, including the ministers and mayors of the disputed cities. The country imposes a visa ban on about 500 officials who threaten or violate Ukraine’s sovereignty, territorial integrity or political independence, or suppress dissent in Russia.
A significant G7 commitment to provide budget support and other support to Ukraine. The G7 pledges to help Ukraine cover its short-term budget deficits, including a US commitment of $7.5 billion from the recently adopted second tranche. The leaders are also making an unprecedented long-term security commitment to provide Ukraine with financial, humanitarian, military and diplomatic support for as long as needed. The leaders’ commitment includes maintaining Ukraine’s credible military readiness and defense, including through the timely delivery of modern defense equipment and advanced weapons systems.
