FACT SHEET: Disrupting and Degrading

The United States, along with an international coalition of over 30 allies and partners, has imposed sweeping sanctions, export controls, and other economic measures since the start of Russia's unprovoked war against Ukraine. Since February 2022, these measures have made it harder and costlier for the Kremlin to obtain the capital, materials, technology, and support it needs to sustain its war of aggression.

Sanctions and export controls have been a key driver of major output declines, most notably in sectors with military applications—including automotive, aerospace, and electronics. Imperfect attempts at parallel import mechanisms and substitution from Russian allies have not succeeded and may limit future growth.

Russia's military-industrial complex and defense supply chains have been significantly degraded by sanctions and export controls.

Russian industrial output has contracted for nine consecutive months, underscoring the effects of Western sanctions and labor shortages. Russia's advanced manufacturing industries are falling behind due to sanctions and export controls and may not recover for years or decades.

In the early wake of the price cap, Russian oil revenues have fallen to their lowest level in two years, while oil export volumes are at new highs.

The value of Russian crude has eroded as the price cap gives importers in emerging markets leverage to negotiate discounts.

[1] For purposes of this fact sheet, totals include any sanctions designations by the U.S. Department of State that are implemented by OFAC and added to the Specially Designated Nationals and Blocked Persons (SDN) List. This does not include, for example, State Department visa restrictions, or Commerce Department additions to their Entity List.