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Adeyemo, speaking in London on a European trip to consult with
allies on strengthening and enforcing sanctions to punish
Russia, said the broadening of those efforts was aimed at
undermining "the Kremlin's ability to operate its war machine".
"In addition to sanctioning companies in sectors that enable the
Kremlin's malign activities, we also plan to take actions to
disrupt their critical supply chains," Adeyemo told an event at
the think tank Chatham House.
"Our goal is to use an integrated approach that includes export
controls which will bite over time and sanctions that will bite
immediately," he said, adding they would also target alternative
military suppliers used by Russia.
Russian President Vladimir Putin sent his troops into Ukraine on
what he calls a "special military operation" to demilitarise and
"denazify" Ukraine.
Since the invasion began on Feb. 24, western allies have frozen
Russia's central bank's foreign currency assets, banned key
Russian banks and wealthy elites from hard currency transactions
and put restrictions on exports of advanced semiconductors and
other technology.
The sanctions have stripped the Kremlin of resources and helped
to cripple Russia's economy. Adeyemo said they would stay in
place for 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 democratic countries at
the end of World War Two, which created institutions including
the International Monetary Fund, the World Bank and the
precursor to the World Trade Organization.
INTERNATIONAL NORMS
These institutions 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 expected countries such as China and India to
remain part of the global financial system rather than seeing
the crisis in Ukraine as a moment to decouple from the West.
"The system has adapted and moulded to members that have come
along to create huge reductions in poverty, and not just western
countries," he said. "That is why, I think, ultimately they are
going to 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 that failed to
respect the core principles of territorial integrity and
self-determination, including Russian oligarchs targeted by
sanctions and those who may attempt to help them hide their
assets.
Adeyemo said that the international system that gave rise to the
sanctions needed strengthening, including by addressing food
insecurity resulting from the conflict, which has disrupted
grain shipments from Ukraine.
He added that the use of economic sanctions must be refined to
preserve their efficacy, including avoiding unilateral actions
and ensuring that they are tied to clear policy objectives and
can be easily reversed when these are met.
He also said that the international community needed to finalise
the global minimum corporate tax agreement and continue
providing the resources needed to end the COVID-19 pandemic,
with broader vaccine access.
(Reporting by David Lawder; additional reporting by Kate Holton
and Andrew MacAskill in London; Editing by Gerry Doyle and
Andrew Heavens)
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