Embargoes and Sanctions

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    U.S. Tightens Technology Controls to Target Russian War Machine

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    The Biden administration announced new penalties on shell companies and suppliers that were feeding Russia’s war against Ukraine.The Biden administration said on Friday that it would add more than 100 companies and organizations in Russia, China and several other countries to a restricted trade list and take other measures, as it widens its net to try to capture more advanced technology that is flowing to the Russian military.The new rules aim to disrupt the procurement networks that are funneling semiconductors and other technology to Russian forces, who then use them to wage war against Ukraine. They will give the U.S. government expanded authority to prevent products made with U.S. technology from being shipped to Russia, even if those products are manufactured in countries outside of the United States.The penalties also included the addition of 123 entities in Russia, Crimea, China, Turkey, Iran and Cyprus to a so-called entity list. Suppliers are barred from sending companies on the entity list certain products without first obtaining a government license.The government also added certain addresses in Hong Kong and Turkey to the list that were known to set up shell companies, meaning any further shell companies registered to those addresses would face trade restrictions.The entity list additions include several uncovered in a recent investigation by The New York Times, including an office at 135 Bonham Strand in Hong Kong’s financial district that specialized in setting up shell companies. The office was the place of registration for at least four companies that funneled millions of restricted chips and sensors to military technology companies in Russia, the investigation found.The additions bring the number of organizations that the Biden administration has added to the entity list in relation to Russia’s war in Ukraine to more than 1,000.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    New Plan to Target Russia’s Oil Revenue Brings Debate in White House

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    Treasury officials want to impose penalties on tankers that help Russian oil evade sanctions. White House aides worry that risks making gasoline more expensive.Officials in President Biden’s Treasury Department have proposed new actions aimed at crippling a fleet of aging oil tankers that are helping deliver Russian oil to buyers around the world in defiance of Western sanctions.Their effort is aimed at punishing Russia but it has stalled amid White House concerns over how it would affect energy prices ahead of the November election.In an attempt to drain Russia of money needed to continue fighting its war in Ukraine, the United States and its allies have imposed penalties and taken other novel steps to limit how much Moscow earns from selling oil abroad. But Russia has increasingly found ways around those limits, raising pressure on the Biden administration to tighten its enforcement efforts.Treasury officials want to do that, in part, by targeting a so-called shadow fleet of oil tankers that is allowing Russia to sell oil above a $60-per-barrel price cap that the United States and its allies imposed in 2022.That cap was intended to restrict Moscow’s ability to profit from its energy exports while allowing its oil to continue flowing on international markets to prevent a global price shock. But Russia has largely circumvented the cap, allowing it to reap huge profits to fund its war efforts.While Treasury officials want to knock Russian tankers out of commission, economic advisers inside the White House worry that would risk inflaming oil prices this summer and push up U.S. gasoline prices, which could hurt Mr. Biden’s re-election campaign. They have not signed off on the proposals, even as current and former Treasury officials present them with analyses suggesting the risks of a major effect on the oil market are low.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    G7 Finance Ministers Aim to Use Russia’s Frozen Assets to Help Ukraine

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    Western economic officials projected a united front, and braced for retaliation, as they prepped tougher sanctions and tariffs.Top finance officials from the world’s advanced economies moved toward an agreement on Saturday over how to use Russia’s frozen central bank assets to aid Ukraine and warned against China’s dumping of cheap exports into their markets, aiming to marshal their economic might to tackle twin crises.The embrace of more ambitious sanctions and protectionism came as finance ministers from the Group of 7 nations gathered for three days of meetings in Stresa, Italy. The proposals under consideration could deepen the divide between the alliance of wealthy Western economies and Russia, China and their allies, worsening a global fragmentation that has worried economists.Efforts by the Group of 7 to influence the two powerful adversaries have had limited success in recent years, but rich countries are making a renewed push to test the limits of their combined economic power.In a joint statement, or communiqué, released on Saturday, policymakers said they would stay united on both fronts as geopolitical crises and trade tensions have emerged as the biggest threats to the global economy.“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” the statement said.Regarding China, the finance ministers expressed concern about its “comprehensive use of nonmarket policies and practices that undermines our workers, industries, and economic resilience.” They agreed to monitor the negative effects of China’s overcapacity and “consider taking steps to ensure a level playing field.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    G7 Finance Ministers Close Ranks as Tensions with Russia and China Fester

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    Western economic officials projected a united front, and braced for retaliation, as they prepped tougher sanctions and tariffs.Top finance officials from the world’s advanced economies moved closer to an agreement on Saturday over how to use Russia’s frozen central bank assets to aid Ukraine and pledged to unite against China’s dumping of cheap exports into their markets, aiming to marshal their economic might to tackle twin crises weighing on the global economy.The embrace of more ambitious sanctions and protectionism came as finance ministers from the Group of 7 nations gathered for three days of meetings in Stresa, Italy. The proposals under consideration could deepen the divide between the alliance of wealthy Western economies and Russia, China and their allies, worsening a global fragmentation that has worried economists.Efforts by the Group of 7 to influence the two powerful adversaries have had limited success in recent years, but rich countries are making a renewed push to test the limits of their combined economic power.In a joint statement, or communiqué, that was set to be released on Saturday, policymakers said they would stay united on both fronts as geopolitical crises and trade tensions have emerged as the biggest threats to the global economy.“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” the statement, which was reviewed by The New York Times, said.Regarding China, the finance ministers expressed concern about its “comprehensive use of nonmarket policies and practices that undermines our workers, industries, and economic resilience.” They agreed to monitor the negative effects of China’s overcapacity and “consider taking steps to ensure a level playing field.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Antony Blinken Visits China

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    Tensions over economic ties are running high, threatening to disrupt a fragile cooperation between the U.S. and China.Secretary of State Antony J. Blinken cheered on the sidelines at a basketball game in Shanghai on Wednesday night, and spent Thursday chatting with students at New York University’s Shanghai campus and meeting American business owners. It all went to emphasize the kind of economic, educational and cultural ties that the United States is pointedly holding up as beneficial for both countries.But hanging over those pleasantries during his visit to China this week are several steps the U.S. is taking to sever economic ties in areas where the Biden administration says they threaten American interests. And those will be the focus of greater attention from Chinese officials, as well.Even as the Biden administration tries to stabilize the relationship with China, it is advancing several economic measures that would curb China’s access to the U.S. economy and technology. It is poised to raise tariffs on Chinese steel, solar panels and other crucial products to try to protect American factories from cheap imports. It is weighing further restrictions on China’s access to advanced semiconductors to try to keep Beijing from developing sophisticated artificial intelligence that could be used on the battlefield.This week, Congress also passed legislation that would force ByteDance, the Chinese owner of TikTok, to sell its stake in the app within nine to 12 months or leave the United States altogether. The president signed it on Wednesday, though the measure is likely to be challenged in court.Mr. Blinken’s visit, which was expected to take him to Beijing on Friday for high-level government meetings, had a much more cordial tone than the trip he made to China last year. That trip was the first after a Chinese spy balloon traveled across the United States, tipping the American public into an uproar.Mr. Blinken talking with Ambassador Burns while attending a basketball game between the Shanghai Sharks and the Zhejiang Golden Bulls in Shanghai on Wednesday.Pool photo by Mark SchiefelbeinWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Poor Nations Are Writing a New Handbook for Getting Rich

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    Economies focused on exports have lifted millions out of poverty, but epochal changes in trade, supply chains and technology are making it a lot harder.For more than half a century, the handbook for how developing countries can grow rich hasn’t changed much: Move subsistence farmers into manufacturing jobs, and then sell what they produce to the rest of the world.The recipe — customized in varying ways by Hong Kong, Singapore, South Korea, Taiwan and China — has produced the most potent engine the world has ever known for generating economic growth. It has helped lift hundreds of millions of people out of poverty, create jobs and raise standards of living.The Asian Tigers and China succeeded by combining vast pools of cheap labor with access to international know-how and financing, and buyers that reached from Kalamazoo to Kuala Lumpur. Governments provided the scaffolding: They built up roads and schools, offered business-friendly rules and incentives, developed capable administrative institutions and nurtured incipient industries.But technology is advancing, supply chains are shifting, and political tensions are reshaping trade patterns. And with that, doubts are growing about whether industrialization can still deliver the miracle growth it once did. For developing countries, which contain 85 percent of the globe’s population — 6.8 billion people — the implications are profound.Today, manufacturing accounts for a smaller share of the world’s output, and China already does more than a third of it. At the same time, more emerging countries are selling inexpensive goods abroad, increasing competition. There are not as many gains to be squeezed out: Not everyone can be a net exporter or offer the world’s lowest wages and overhead.Robotics at a car factory in China. Today, manufacturing accounts for a smaller share of the world’s output, and China already does more than a third of it. Qilai Shen for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Yellen Urges Israel to Restore Economic Ties to West Bank

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    Treasury Secretary Janet L. Yellen said on Tuesday that she had personally urged Prime Minister Benjamin Netanyahu of Israel to increase commercial engagement with the West Bank, contending that doing so was important for the economic welfare of both Israelis and Palestinians.Ms. Yellen’s plea was outlined in a letter that she sent to Mr. Netanyahu on Sunday. It represented her most explicit public expression of concern about the economic consequences of the war between Israel and Hamas. In the letter, Ms. Yellen said, she warned about the consequences of the erosion of basic services in the West Bank and called for Israel to reinstate work permits for Palestinians and reduce barriers to commerce within the West Bank.“These actions are vital for the economic well-being of Palestinians and Israelis alike,” Ms. Yellen said at a news conference in Brazil ahead of a gathering of finance ministers from the Group of 20 nations.The letter came as the cabinet of the Palestinian Authority, which administers part of the Israeli-occupied West Bank, submitted its resignation on Monday in hopes that it could overhaul itself in a way that would enable it to potentially take over the administration of Gaza after the war there ends. Negotiations between Israel and Hamas are also resuming in Qatar this week as mediators from that nation, along with the United State and Egypt, work on a deal to release some hostages being held by Hamas in Gaza in exchange for Israel’s agreeing to a temporary cease-fire.Senior Biden administration officials have been trying to mediate a resolution to the conflict in Gaza, which health authorities there say has killed approximately 29,000 Palestinians. Ms. Yellen has largely been focused on tracking the economic implications of the war and managing the sanctions that the Treasury Department has imposed on Hamas and those who are involved in its network of finances.While the Biden administration has been concerned about the humanitarian crisis unfolding in Gaza, it is increasingly worried that economic unrest in the West Bank could fuel violence and further deteriorate living standards there. The war has already taken a toll on Israel’s economy, which contracted by nearly 20 percent in the fourth quarter of last year.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    2 Years Into Russia-Ukraine War, U.S. Campaign to Isolate Putin Shows Limits

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    Many nations insist on not taking sides in the war in Ukraine, while China, India and Brazil are filling Russia’s coffers.The Biden administration and European allies call President Vladimir V. Putin of Russia a tyrant and a war criminal. But he enjoys a standing invitation to the halls of power in Brazil.The president of Brazil says that Ukraine and Russia are both to blame for the war that began with the Russian military’s invasion. And his nation’s purchases of Russian energy and fertilizer have soared, pumping billions of dollars into the Russian economy.The views of the president, Luiz Inácio Lula da Silva, encapsulate the global bind in which the United States and Ukraine find themselves as the war enters its third year.When Russia launched its full-scale invasion of Ukraine on Feb. 24, 2022, the Biden administration activated a diplomatic offensive that was as important as its scramble to ship weapons to the Ukrainian military. Wielding economic sanctions and calling for a collective defense of international order, the United States sought to punish Russia with economic pain and political exile. The goal was to see companies and countries cut ties with Moscow.But two years later, Mr. Putin is not nearly as isolated as U.S. officials had hoped. Russia’s inherent strength, rooted in its vast supplies of oil and natural gas, has powered a financial and political resilience that threatens to outlast Western opposition. In parts of Asia, Africa and South America, his influence is as strong as ever or even growing. And his grip on power at home appears as strong as ever.The war has undoubtedly taken a toll on Russia: It has wrecked the country’s standing with much of Europe. The International Criminal Court has issued a warrant for Mr. Putin’s arrest. The United Nations has repeatedly condemned the invasion.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More