Photographer: Andrey Rudakov/Bloomberg

U.S. to Sanction Russian Companies After Missing Oct. 1 Deadline

Updated on
  • Weapons manufacturers, shipbuilder added to sanctions list
  • McCain, Cardin had urged Trump to enact sanctions ‘robustly’

The U.S. State Department said it would sanction dozens of Russian companies in the country’s defense and intelligence industry, after coming under criticism from lawmakers for missing an Oct. 1 deadline Congress set to punish Russia for its 2016 election meddling.

Under the new sanctions, the U.S. will ban “significant” transactions with the Russian companies, senior administration officials told reporters on a conference call Friday. The officials insisted on anonymity to explain the sanctions regime.

Among the companies named are arms trader Rosoboronexport, missile manufacturer Almaz-Antey PAO and United Shipbuilding Corp., according to a list published by the State Department. Weapons manufacturer Kalashnikov Concern and Sukhoi Aviation Holding Co., maker of a Russian fighter jet, were also on the list, which included companies already subject to separate restrictions.

Republican Senator John McCain of Arizona, who heads the Armed Services Committee, has repeatedly called for tougher measures against Russia over its military incursion into Ukraine and criticized the White House for missing the Oct. 1 deadline to implement new restrictions against Moscow.

McCain and Democratic Senator Ben Cardin of Maryland last month called on the administration to disclose how it will implement fresh sanctions “robustly,” saying it would send a message to Moscow that the U.S. is committed to countering “Russian subversion and destabilization.”

The legislation, signed reluctantly by Trump in August, gave lawmakers the power to block the president from lifting them, strengthening punitive measures imposed over Russia’s intervention in Ukraine and its interference in last year’s U.S. election. That gives the measures a similar status to those that were entrenched under Jackson-Vanik, the 1974 Cold War-era amendment that imposed trade restrictions on the Soviet Union for blocking Jewish emigration and endured for four decades, even after the Soviet collapse.

— With assistance by Nick Wadhams

    Before it's here, it's on the Bloomberg Terminal.