(Bloomberg) -- The Group of Seven nations are set to create a new tool to coordinate their enforcement of existing sanctions on Russia, an effort to tighten the screws and improve compliance, according to people familiar with the matter.
The instrument, tentatively called the “Enforcement Coordination Mechanism,” aims to bolster information sharing and other actions, including regarding countries and firms anywhere in the world suspected of aiding Russia’s war in Ukraine by evading or undermining sanctions, according to one of the people, who asked not to be identified in advance of an announcement.
The move comes as Russia’s invasion reaches its one-year mark and with Ukraine bracing for more fighting as the weather warms.
The G-7 and the European Union are expected this week to also announce new sanctions and trade restrictions on goods used by Russia’s military, including technology, components, heavy vehicles, industrial machinery, electronics and construction equipment. They are also set to target companies in countries such as Iran that are supporting Moscow’s war efforts with military supplies.
Improving Enforcement
But improving enforcement of existing sanctions will be a major focus for allies moving forward.
The US is worried about policing the extensive measures already in place, one of the people said.
Along those lines, the G-7 will also aim to increase pressure on companies and nations that may be helping Russia skirt the impact of sanctions and explore future measures and penalties to disrupt the flow of military supplies.
The EU is also looking to force banks and other institutions to report sanctioned Russian assets they hold as part of a new package of measures the bloc aims to approve this week. EU sanctions require the backing of all member states, though, and some are resisting aspects of that proposal, another person said.
Identifying the location of sanctioned assets will be crucial to aiding Ukraine’s reconstruction. The G-7 believes Russia is responsible for the damage done to Ukraine’s critical infrastructure and wants to make sure Moscow pays to rebuild, the people familiar said.
Separately, a group of EU nations this week proposed giving new powers to a soon-to-be-established anti-money laundering authority with the aim of improving coordination on sanctions enforcement.