News from Epoch Times, June 9, 2024:
Reports suggest that US officials are expected to issue a new stern warning to smaller Chinese banks next week through the Group of Seven (G7), demanding them to cease assisting Russia in evading Western sanctions.
According to Reuters, G7 leaders will convene for a summit in Italy from June 13 to 15, with their closed-door meetings expected to focus on the growing trade between China and Russia posing a threat to the conflict in Ukraine and the necessary response measures.
One US official involved in planning the event and another individual familiar with the matter indicated that these discussions might lead to a public statement addressing the issues involving Chinese-funded banks.
The United States, United Kingdom, Canada, France, Germany, Italy, and Japan are not expected to immediately take punitive actions against any banks during the summit. An insider mentioned that the emphasis will reportedly be on smaller institutions rather than the largest Chinese banks.
Unnamed sources stated that negotiations regarding the specific form and content of the warning are still ongoing.
The White House did not respond to requests for comments. The US Treasury Department did not provide an immediate comment, but Treasury officials have repeatedly warned financial institutions in Europe, China, and elsewhere that they face sanctions for assisting Russia in evading Western sanctions.
Daleep Singh, the US Deputy National Security Advisor for International Economics, expressed to the Washington think tank “New America Security Center” this week that he anticipates the G7 leaders will set their sights on China’s support for the Russian economy, which has now adjusted around the ongoing conflict.
“We are concerned that China is increasingly becoming the factory for Russia’s war machine. When you consider that Russia’s military ambitions pose a clear threat to Ukraine’s existence and increasingly endanger European security, NATO, and transatlantic security, you can call it a military arsenal of authoritarian regimes,” he said.
Singh and other senior officials of the Biden administration stated that Washington and its allies are prepared to use sanctions and stricter export controls to diminish Russia’s ability to evade Western sanctions, including imposing secondary sanctions on banks and other financial institutions.
An insider familiar with the plan mentioned that Washington is preparing to announce significant new sanctions on financial and non-financial targets next week.
This year’s G7 summit is expected to also focus on leveraging profits generated from Russia’s assets frozen in the West to benefit Ukraine.
In December last year, Biden signed an executive order threatening sanctions on financial institutions aiding Moscow in evading Western sanctions.