The US government plans to announce broader sanctions on June 12, targeting the sale of chips and other goods to Russia, with the measures specifically targeting companies from China, according to Reuters.
These actions are part of the Biden administration's broader effort to counter Russia's attempts to circumvent Western sanctions and curb its military actions against Ukraine.
According to sources, the US administration will announce an expansion of existing export controls to include goods under American brands, not just those manufactured in the United States. The focus will also be on companies from Hong Kong that deliver goods to Moscow.
White House representative John Kirby told reporters that Washington would announce new sanctions and export controls against Russia.
This announcement comes as President Joe Biden prepares to head to a summit in southern Italy with leaders of other democratic countries of the G7.
One source mentioned that one of the main priorities for G7 leaders is to bolster support for Ukraine, which has been resisting the Russian invasion for three years, and to disarm Russia's military capabilities.
US officials have expressed frustration over China's increasing trade with Russia, which allows Moscow to continue arming its military. Exports of machinery and other manufacturing equipment from China and other countries are helping Russia produce weapons it previously imported, according to two sources familiar with the situation.
The changes are necessary to expand the definition of American goods subject to export controls, given that Moscow has now geared its entire economy towards war.
Dalip Singh, Deputy National Security Advisor for International Economics at the White House, told the Center for a New American Security last week that Ukrainian President Volodymyr Zelenskyy is expected to meet with G7 leaders to emphasize the dire situation faced by Ukrainian forces in their fight against Russia.
According to sources, Washington is also poised to announce significant new sanctions against financial institutions and non-bank organizations that are part of the technology and goods supply channels supplying the Russian military.
Earlier, it was reported that G7 leaders plan to issue a "tough warning" to Chinese banks about the consequences of aiding Moscow in circumventing sanctions for the war against Ukraine.
US Deputy Treasury Secretary Wally Adeyemo said that American companies also need to strengthen control over sanctions compliance to prevent Moscow from obtaining dual-use goods.