The Price of Diplomacy

Millions of taxpayer dollars are given to Russian companies to maintain the U.S. embassy in Moscow. Critics claim the money is used to fuel Vladimir Putin's war machine

- ΚΑΤΕ PLUMMER

THE U.S. GOVERNMENT HAS PAID RUSSIAN companies over $8 million to maintain its embassy in Moscow, a Newsweek investigation has found, with one company that was awarded a contract later placed under sanction by Canada.

Shortly after launching its invasion of Ukraine in February 2022, Russia was slapped with economic sanctions by the United States and its allies around the world. The U.S. went on to seize approximately $300 billion of Russian Central Bank assets as well as $30 billion of assets of officials close to President Vladimir Putin.

The embassy contracts have drawn criticism from campaign groups and politicians, including Idaho Republican Congressman Russ Fulcher.

"Even if these contracts are relatively small, I voted on legislation to halt American investments into Russia, and providing jobs for their citizens is doing just that," he said. The U.S. ceased using certain Libyan-owned products and businesses for its diplomatic mission in Tripoli, a source who used to work in government told Newsweek, when the North African nation was under sanction following the fall of the Gaddafi regime. This had led some Russia watchers to wonder why the same cannot be done in Moscow.

The U.S. government, however, has suggested it is not possible.

Can using Russian workers and resources be justified as the price of maintaining a diplomatic presence in the country? Newsweek investigates.

'Significant Income for Russia'

According to a Newsweek analysis of procurement data, the government has awarded 41 contracts amounting to $8,054,780.36 in value to 12 Russian companies.