US - Russia Relations: New Round Of Sanctions Target Russia’s Luxury Assets

The White House on Thursday announced more sanctions against Russia over its invasion of Ukraine, including sanctioning luxury property and assets along with more key individuals.

The Commerce Department also announced sanctions that will restrict Russia's military capabilities. Added to the "Entity List" were 71 parties in Russia and Belarus. The move will help prevent Russia from obtaining and using U.S.-origin items. It also restricts "foreign-made products derived from certain U.S. technology or software."

The Treasury Department also sanctioned more Kremlin officials and Russian business leaders. The Treasury also sanctioned the luxury property and assets of Russian elites that help them evade sanctions. It also went after luxury asset management and service companies involved in similar efforts.

Among the sanctioned is Sergei Roldugin, who manages Russian President Vladimir Putin's offshore wealth. Roldugin's family also faced sanctions. The U.S. also sanctioned yacht brokerages with close ties to Putin and the Kremlin. This includes Imperial Yachts, along with its CEO, Evgeniy Kochman.

United Aircraft Corporation (UAC) President Yury Slyusar also faced sanctions. The UAC is a Russian state-owned company founded by Putin. It supports the government's defense industry and supplies "destructive activity in Ukraine."

Individuals targeted in the new round of sanctions from the State Department include God Nisanov, an associate of Russian officials. Maria Zakharova, a spokesperson for Russia's Foreign Ministry, also became a part of the latest round of sanctions.

Alexey Mordashov, "one of Russia's wealthiest billionaires," along with his family and companies — which includes "one of Russia's leading domestic steel producers" — also faced sanctions.

The war is on its 99th day and there are no signs of it slowing down. Still, the U.S. highlighted that the consequences are still significant.

"Analysts are projecting a double-digit decline in Russian GDP in 2022, soaring inflation estimated near 20% in 2022, and Putin’s war is projected to wipe out the last 15 years of economic gains in Russia," the White House estimated.