Treasury targets electronics supply chains in new sanctions against Russia

The Treasury Department on Monday announced a new round of sanctions on Russian military supply chains.

Treasury said its sanctions target microelectronics imported by Russia that the country uses in its war with Ukraine, specifically ones produced by an Armenia-based company affiliated with Russian electronics producer Milandr.

Treasury said the company was a front for the Russian military-industrial base and designated two Swiss nationals in connection with their work for the company.

Treasury’s Office of Foreign Asset Control (OFAC) also froze the assets of a Taiwan-based company that it described as a front for purchasing microelectronic components from Asian manufacturers.

“Consistent with international commitments to sever Russia’s access to key components for its military-industrial complex, the United States will continue to target Russia’s efforts to resupply its weapons and sustain its war of aggression against Ukraine, including any foreign persons who assist Russia in those efforts,” Treasury said in a statement.

The sanctions come after Reuters reported that software developed by a Russian company in Siberia had made its way into numerous apps sold in Apple’s app store and even into software used by the U.S. Army and U.S. Centers for Disease Control and Prevention.

The company, called Pushwood, presented itself as being based in Washington but was actually based in Novosibirsk, Reuters reported.

Monday’s sanctions also included new measures against networks around Suleyman Kerimov, a previously sanctioned Russia-based billionaire with ties to the Kremlin.

OFAC designated four French real estate companies belonging to Kerimov’s daughter, among other actions.

Fighting in the war between Russia and Western-backed Ukraine remains intense amid recent Russian retreats, which have drawn criticism on Russian state television.

CIA chief William Burns met with his Russian counterpart in Ankara, Turkey, on Monday about military threat levels. U.S. officials said the talks were not negotiations to bring an end to the war, according to reports.