On Friday, Russia’s finance ministry announced it plans to increase the monthly volume of deferred currency purchases to a cumulative total of $6.70bn (621.1bn roubles). This follows the central bank’s decision in August to pause the purchasing of foreign currency until the end of the year to deter further slippages of the rouble against the dollar.
Sanctions issued by US Department targeting Russia’s supply chain
Between 6 October and 7 November, the ministry had planned to purchase foreign currency to combat lower oil and gas earnings, worth approximately 398.7bn roubles; however, the ministry’s new decision seems that the postponement may continue throughout the early months of 2024.
On Thursday, the rouble registered as 93:1 USD following sanctions made by the United States against Turkish, Chinese and UAE companies that were still operating along Moscow’s supply chain. Before these sanctions, Russia had set technology production needed for its military efforts offshore, thus needing to rely on suppliers in other countries to transport and import these items.
US Treasury Secretary Janet Yellen observed:
Russia is dependent on willing third-country individuals and entities to resupply its military and perpetuate its heinous war against Ukraine and we will not hesitate in holding them accountable,”
Approximately 130 companies based in China, Turkey and the UAE have been targeted with sanctions due to unwillingness to reduce supply to Moscow.
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The US State Department also issued nearly 100 sanctions, which targeted Russia’s energy, metals and mining sectors as well as defense production. Among the entities, 12 are in Russia and one in Uzbekistan.
The Commerce Department issued separate sanctions, noting that 13 entities have been blacklisted for improper support of Russia’s military through the production, development and transportation of Russian drones.
