In Germany today, President Biden will meet with G7 leaders and President Zelenskyy to continue delivering on our unwavering, unified commitment to support Ukraine and build on our unprecedented sanctions to hold President Putin accountable. The G7 will issue a statement of support for Ukraine, which will include significant new sanctions commitments to further intensify our economic measures against Russia.
The United States has rallied over 30 allies and partners around the world to impose drastic costs on Russia and the U.S. led coalition will continue to increase pressure on Putin. In the span of a few months, U.S. exports to Russia, including of critical technology inputs Putin needs to maintain his military, have decreased approximately 97%. Russia’s imports of goods from around the world could fall by 40%. Factories across Russia are struggling to maintain production. Russia’s GDP will likely decline by double digits, inflation is rising to over 20%, Russia’s struggling to make bond payments, and Russia’s defaulted on its sovereign debt for the first time in more than a century.
Our measures will continue to sap Putin’s military-industrial complex of critical components, prevent the central bank’s foreign reserves from propping up an ailing economy and deprive Putin of the resources he needs to wage his war, and hold the kleptocracy to account for its ill-gotten gains. The effectiveness of our measures will only compound over time to further isolate Russia from the world economy.
The United States, in coordination with the G7, will implement significant commitments, including sanctions on hundreds of individuals and entities that adds to the over 1,000 already sanctioned, take action on evasion by targeting companies in several countries that adds to the over 300 Entity Listings already in place; impose tariffs on hundreds of Russian products worth billions of dollars to Russia, among other things:
Measures targeting the Russian military production and supply chains. G7 Leaders will align and expand targeted sanctions to further restrict Russia’s access to key industrial inputs, services, and technologies produced by our economies, particularly those supporting Russia’s armament industrial base and technology sector. The United States Departments of State and the Treasury will aggressively target Russian defense supply chains by imposing blocking sanctions on major state-owned defense enterprises, in addition to defense research organizations, and dozens of other defense-related entities and individuals and limit 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 committed to strip Russia of “most favored nation” trading status, which guaranteed low tariff rates for Russian goods sold globally. President Biden and other G7 leaders will seek authority to use revenues collected by new tariffs on Russian goods to help Ukraine and to ensure that Russia pays for the costs of its war. President Biden is also announcing that, pursuant to Congress’s revocation of Russia’s trade status in the U.S., the U.S. will implement a higher tariff rate on more than 570 groups of Russian products worth approximately $2.3 billion to Russia. These measures will restrict Russia’s ability to benefit economically from sales to the U.S. market and are carefully calibrated to impose costs on Russia, while minimizing costs to U.S. consumers.
Restrictions on Russia’s participation in the global market and further crack downs on evasion attempts. G7 Leaders are determined to limit Russia’s revenues, including from gold, Russia’s second largest export after energy. The United States will take several key actions to implement these commitments. The U.S. Department of the Treasury will be issuing a determination to prohibit the import of new gold into the United States, which will prevent Russian participation in the formal gold market. G7 Leaders will also commit to continue to target efforts by those engaging in evasion and backfill activities. The U.S. Department of Commerce will take its first action against companies engaging in backfill activities in support of Russia by adding several companies around the world to the Entity List, which will prohibit those companies from purchasing U.S.-made origin goods and technologies, such as semiconductors. State and Treasury will implement blocking sanctions against persons tied to aiding Russia’s evasion efforts. Commerce and Treasury will jointly issue an alert to financial institutions to aid in detecting potential violations of export controls.
Imposition of costs on those responsible for human rights abuses – including war crimes, profiteering, and illegitimate authorities. G7 Leaders will decide to impose sanctions on those responsible for human rights abuses – including war crimes, exercising illegitimate authority in Ukraine, and involved in Russia’s tactics to steal Ukrainian grain or otherwise profit illegitimately from the war. The U.S. Departments of Treasury and State will implement blocking sanctions on private military companies operating in Ukraine, Russian military units that have been credibly implicated in human rights abuses or violations of international humanitarian law in Ukraine, and Russia-installed senior officials in areas besieged or held by Russia’s forces, including ministers and mayors of contested cities. State will impose visa restrictions on approximately 500 officials for threatening or violating Ukraine’s sovereignty, territorial integrity, or political independence, or suppressing dissent in Russia.
A significant G7 Commitment for Budgetary Support and other support for Ukraine. The G7 will commit to help Ukraine cover its short-term budgetary funding shortfalls, including a $7.5 billion commitment from the United States from the recently passed second supplemental. Leaders will also make an unprecedented, long-term security commitment to providing Ukraine with financial, humanitarian, military and diplomatic support as long as it takes. The commitment by the leaders will include maintaining Ukraine’s credible military readiness and defense, including through the timely provision of modern defense equipment and advanced weapons systems.