According to a top US official, the world’s largest corporations “have a choice” whether to do business with Russia or Western allies.
Firms might “choose to support Russia” in its invasion of Ukraine, according to US Deputy Treasury Secretary Wally Adeyemo, or “continue to conduct business with the 30 nations” that have imposed sanctions.
Ukraine’s allies, he claimed, were determined to imposing further sanctions.
“We’re coming for your resources,” he told Russian oligarchs.
Many Western corporations have responded by shutting down operations or withdrawing services from Russia since Vladimir Putin ordered Russian forces to attack Ukraine.
Western sanctions have made business difficult or impossible for certain companies, while others have elected to withdraw from Russian markets for moral grounds.
However, due to their brands being handled by franchisees in Russia, several well-known businesses, such as Marks & Spencer and Burger King, continue to do business in Russia and have no authority to quit.
On a trip to Europe to organize the next wave of sanctions against Russia, Mr. Adeyemo, who leads the Biden administration’s sanctions operations, met with reporters.
When asked about Chinese and Indian corporations stepping in to fill holes left by western companies in Russia, Mr Adeyemo warned the US would “take action against” anybody assisting Moscow in evading sanctions.
“These governments, these corporations, and these individuals must make a decision. They may choose to back Russia’s unlawful and illegitimate invasion of Ukraine, or they can continue to do business with the 30 nations who have joined forces to oppose Russia “he stated
The US congressman stated that the US dollar, euro, and pound were clearly the backbone of the global financial system, and that anyone who wanted to operate in those currencies had to “participate in our sanctions.”
The Russian ruble has recovered most of its losses in the aftermath of the invasion, after first plummeting to record lows.
The unprecedented censure of Russia’s central bank, which curtailed President Putin’s ability to protect the currency with his war chest of foreign exchange reserves, was a key factor in the first collapse.
During the conflict, however, flows of euros and pounds to support imports of Russian oil and gas remained, helping to keep the ruble stable.
Russia is one of the world’s leading oil exporters and a major commercial partner for the European Union.
Despite the fact that the United States and Canada have blocked Russian oil imports, the EU has not. The EU is largely reliant on Russian oil.
The United Kingdom has stated that Russian oil would be phased out by the end of the year.
Mr Adeyemo, on the other hand, stated that the money Russia is receiving “is no longer filling in the war chest.”
He went on to say, “They’re using that money to buy roubles to prop up their economy.”
To help the economy, the Russian government has instructed exporters to change whatever foreign cash they get into roubles, he added.
He went on to say, “That’s money they can’t use to help the war effort.” “Our ultimate aim is to force the Kremlin to choose between sustaining their home economy and domestic needs and being able to finance the war.”
Mr. Adeyemo reaffirmed that the goal of Western sanctions is to end the war, and that “regime change” is not a US strategy in Russia or anywhere.