WASHINGTON, DC -- Today, after the U.S. Treasury Department designated seven Russian oligarchs and twelve companies they own or control; seventeen senior Russian government officials; a state-owned weapons exporter and a state-owned bank for sanctions pursuant to the Countering America’s Adversaries through Sanctions Act (CAATSA) and Executive Orders, U.S. Senator Jack Reed, Ranking Member of the Senate Armed Services Committee, issued the following statement:

“While slow in coming, today’s sanctions against some Putin cronies and their assets represents a smart step.  This is a non-military action to effectively counter Russian aggression and raise the costs to the Kremlin much more than the paltry sanctions announced last month. 

“The delay in taking this long overdue step likely blunts the impact on some of the targets because they were likely able to take steps over the last several months to mitigate the financial impact on their pocketbooks.  Still, these latest sanctions will have a chilling effect on those who do Putin’s dirty work and have enriched themselves at the expense of the Russian people. 

“It signals to Putin’s inner circle, and anyone thinking of collaborating with them, that the price of doing business is higher and riskier.  Today’s announcement also shines a light on the use by Kremlin-linked oligarchs of shell companies to hide ill-gotten gains and fuel malign activities across the world.

“More needs to be done to provide real deterrence to the Kremlin.  We must send a message to Putin and his inner circle that the United States will not tolerate continued aggression against our democracy, free markets, and open society.   Too often sanctions targeting Russian state-owned companies have not been effective because they omit the oligarchs who head those organizations, or benefit from them.  We must do more to expose the true beneficial ownership of the business dealings of the oligarchs and strengthen our laws that have been exploited for the Kremlin’s gain.

“With just eight months before the mid-term elections, the Trump Administration still has not provided us with a strategy to counter Russian hybrid operations and malign influence.  The National Defense Authorization Act from Fiscal Year 2018 requires a comprehensive plan from the Administration to blunt Russian aggression, which come due in the next few days.  The issue is of utmost importance and I hope the Administration delivers the strategy without delay.”

Reed strongly supported passage of the Countering America’s Adversaries through Sanctions Act, which passed the full U.S. Senate in July of 2017 on a 98-2 vote.