WASHINGTON, June 4 (Reuters) - Manufacturers and

distributors need to step up compliance with Russia-related

sanctions amid the war in Ukraine, U.S. Deputy Treasury

Secretary Wally Adeyemo told CNBC on Tuesday.

U.S. companies in particular need to pay more attention to

their supply chains to ensure they are not complicit with

Russia's evasion of sanctions over Ukraine, Adeyemo said in an

interview.

Adeyemo said manufacturers of microelectronics and machine

tools especially needed to step up compliance to help cut off

supplies of "dual use" goods to Russia, including from Chinese

producers. Freight forwarders and distributors need to do the

same and financial institutions need to look at their

relationships with small and medium-sized banks in "countries of

concern" because Moscow is looking for ways around U.S.

sanctions, Adeyemo said.

Asked whether U.S. manufacturers and banks are complicit

in Russia's efforts to evade sanctions, Adeyemo said: "Every

time I talk to a major CEO, they ask me what more can they do?

"And I want to deliver that message, not just the ones

who are calling, but to all the CEOs across our coalition,"

Adeyemo said. "And what we need you to do is to pay more

attention to supply chains and also to the banks that you're

working with."

Adeyemo said that without supplies of goods from China,

including machine tools and engine parts, Russia's

military-industrial complex "would grind to a halt." China can

have a robust economic relationship with Russia, but it cannot

include goods that can be used in military production, he added.