Speaking in London on a European trip to consult with allies on reinforcing and imposing sanctions on Russia, Adeyemo said the expansion of these efforts was aimed at undermining “the Kremlin’s ability to operate its war machine”. “. “Apart from imposing sanctions on companies in areas that allow the Kremlin to engage in malicious activities, we also plan to take steps to disrupt their critical supply chains,” Adeyemo told a think tank at Chatham House. Sign up now for FREE unlimited access to Reuters.com Register “Our goal is to use an integrated approach that includes export controls that will bite over time and sanctions that will bite immediately,” he said, adding that they would also target alternative military suppliers used by Russia. Russian President Vladimir Putin has sent troops to Ukraine in a “special military operation” calling for the demilitarization and “denationalization” of Ukraine. Since the invasion began on February 24, Western allies have frozen Russia’s central bank assets in foreign currency, barred key Russian banks and wealthy elites from trading in hard currency, and imposed restrictions on advanced semiconductor and other technology. The sanctions have removed resources from the Kremlin and helped cripple Russia’s economy. Adeyemo said they would stay in place as long as the invasion continued. He attributed the success of the sanctions to a strong multilateral effort and the strength of an international economic and financial system built by democracies at the end of World War II, set up by institutions such as the International Monetary Fund, the World Bank and the forerunner of the World Trade Organization. INTERNATIONAL RULES These institutions have created international rules, norms and values that set the stage for decades of prosperity, but which have been rejected by Russia in its invasion, he said. Adeyemo said he expects countries like China and India to remain part of the global financial system instead of seeing the crisis in Ukraine as a moment of disengagement from the West. “The system has been adapted and shaped by members who have come to create huge reductions in poverty, and not just in Western countries,” he said. “That’s why I believe they will eventually remain part of the system, because the benefits of the system far outweigh the risks.” He said, however, that it was not open to those who failed to respect the basic principles of territorial integrity and self-determination, including sanctioned Russian oligarchs and those who might try to help them hide their assets. Adeyemo said the international system that led to the sanctions needed to be strengthened, including tackling food insecurity resulting from the conflict, which has disrupted grain shipments from Ukraine. He added that the use of financial sanctions needs to be improved to maintain their effectiveness, including avoiding unilateral action and ensuring that they are linked to clear policy objectives and can be easily reversed when achieved. He also said that the international community must finalize the global minimum tax agreement and continue to provide the resources needed to end the COVID-19 pandemic, with wider access to vaccines. Sign up now for FREE unlimited access to Reuters.com Register Report by David Lawder. additional reports by Kate Holton and Andrew MacAskill in London. Editing by Gerry Doyle and Andrew Heavens Our role models: The Thomson Reuters Trust Principles.
