Russia

The United States and other Western countries have started to impose sanctions on Russia for its moves into eastern Ukraine. The sanctions so far are ...

Europe is reliant on Russia for about a third of its natural gas, and with fuel prices spiking and the continent already feeling an energy crunch ( which some believe Russia has been happy to let happen), it is wary of even greater disruptions. The US has also said it will target oligarchs and their family members, but so far it’s a limited number of individuals. As Biden and some of his Western counterparts made clear, this is likely the first round of penalties. The United States and some of its partners appeared to vacillate on what, exactly, to call Russia’s actions in the immediate aftermath. The UK sanctioned a few oligarchs, and put limited sanctions on some banks. Biden said the actions mean Russia’s government “can no longer raise money from the West and cannot trade in its new debt on our markets or European markets either.” Moscow is also very likely to engage in its own countermeasures, in defense of what it sees as a justified action in Ukraine — which Putin has already said he doesn’t see as a sovereign country. The US and Europe are not exempt, especially as these economies are dealing with the post-pandemic recovery and inflation. Biden warned Tuesday that Russia is “poised to go much further in launching a massive military attack in Ukraine.” This flurry of diplomatic action came after tensions on Ukraine’s border rapidly escalated this weekend, and on Monday, Russian President Vladimir Putin moved to recognize as independent the so-called Luhansk People’s Republic and the Donetsk People’s Republic, two territories in eastern Ukraine where he has manufactured a separatist conflict since 2014. But it was a violation of international law and Ukraine’s sovereignty, an attempt by Russia to essentially redraw Ukraine’s borders. Germany also paused certification for the $11 billion Nord Stream 2 pipeline, something the US and many of its partners very much wanted.

The United States is poised to unleash a wider array of sanctions against Russia if Moscow escalates the conflict in Ukraine, denying key Russian financial ...

Ukraine's exports to China fell markedly over the past decade, while Belarus' shipments have changed little. Its share of Russian imports has risen since 2014, while those from Germany have declined markedly. "China may say, 'We're going to buy oil on the open market and if it's Russian oil, so be it.'" Russia's export destinations have changed as well. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

President Vladimir V. Putin has learned from earlier U.S.-led sanctions, and his allies could benefit from a more isolated Russia.

“I interpret that as a warning that the Biden administration is prepared to cut off other major Russian banks from the U.S. financial system,” Mr. Fishman said. President Xi Jinping of China, who has been strengthening his nation’s ties with Russia, could help Mr. Putin get around some of the sanctions or bolster Russia’s economy with greater energy purchases. The Russian government has spent years trying to reconfigure its budget and finances so that it can withstand further sanctions, efforts that have been aided by high market prices for oil and gas. The costs are not expected to be felt widely in Russia — the two banks are policy institutions and do not have retail operations — but American officials could eventually announce more painful steps. Mr. Putin’s decision on Monday to press ahead with the troop movement suggests that he has concluded that the costs of new sanctions are tolerable, despite U.S. talk of “massive consequences” for his country. And no Western officials have even proposed choking the lifeblood of Russia’s economy by cutting off its lucrative energy exports. He added that in the future, it would be “important for us to raise the level of our economic sovereignty.” They have also adopted a siege mentality rooted in an ideological belief about the United States and its sanctions policies that Mr. Putin regularly pushes. The bulk of my contacts in the government believe that.” They’re the kings, and that can be secured in Russia only.” But Mr. Putin held on to Crimea. And on Monday, he ordered more troops into an insurgent-controlled area of eastern Ukraine where thousands of Russian soldiers have been operating and said the Kremlin was recognizing two enclaves as independent states. Speaking to reporters on Friday, he boasted that his country had grown more self-sufficient in the face of “illegitimate” Western sanctions, according to Russia’s Tass news service.

Our lawyers discuss sanctions issued or announced by the United States and several allies targeting Russia and the Russia-backed separatist regions of ...

In the lead up to the recent sanctions, leaders of the NATO countries engaged in close coordination and dialogue and had reported that they have “ wrapped up“ and are “ unified“ on potential sanctions packages to be used. This is therefore a very significant expansion in the scope of the designation criteria which empowers the UK to impose sanctions on a wide range of businesses that may not necessarily have a strong nexus to the Russian government, save that the nature of their business and/or the sector(s) in which they operate are of economic significance to the Russian government. However, the recent measures allow more authority for the Western countries to issue additional sanctions in case of further escalation—such as a new Executive Order that authorizes sanctions on persons operating in the separatist regions of Ukraine and a financial services sector determination that authorizes sanctions on persons operating in the Russian financial services sector. Foreign Secretary, Liz Truss, said in her statement that “this first wave of sanctions will hit oligarchs and banks close to the Kremlin. It sends a clear message that the UK will use [its] economic heft to inflict pain on Russia and degrade their strategic interests.” She further stated that “in the event of further aggressive acts by Russia against Ukraine,” the UK has prepared “an unprecedented package of further sanctions ready to go. There has been much speculation in recent days about the sanctions packages that would be revealed upon Russia’s invasion of Ukraine. So far, many world leaders have stopped short of calling Russia’s recognition of the two regions and his deployment of the Russian military to these regions a full-scale invasion, perhaps in part as an effort to deescalate tension or to leave space for additional sanctions if the situation worsens. The Nord Stream 2 project was intended to supply energy from Russia to the European Union, and Germany—along with other EU member states—had so far contested any attempts to impose sanctions on the Nord Stream 2 project in light of Russian aggression, in part due to the European Union’s heavy reliance on energy sources from Russia. With this action, Germany sent a clear message that it stands ready to join severe sanctions against Russia. Parties planning to rely on these general licenses should note that all six general licenses expressly limit their authorizations to transactions and activities that are prohibited by this particular Executive Order. The general licenses do not authorize transactions with persons or entities designated pursuant to other sanctions programs. Such measures will likely take the form of targeted EU Economic Sanctions and prohibit or at least limit dealings with, for example, transferable securities and money-market instruments with a certain maturity and prohibit making loans or credit to those targeted. After the meeting of the council, Putin delivered a televised address to the public, referring to eastern Ukraine as “historically Russian territory” and saying that it is “necessary to take a long overdue decision to immediately recognize the independence and sovereignty of the Donetsk People’s Republic and the Luhansk People’s Republic.” Immediately thereafter, Putin ordered Russian troops to enter the regions for a “peacekeeping” mission under the treaties of “friendship and mutual assistance” that Russia ratified that same day with the individual regions. OFAC accompanied this determination with FAQ 964, noting that its determination merely lays the groundwork for future sanctions against persons that operate in the financial services sector, rather than actually serving as sanctions on the entire financial services sector. NATO allies also announced sanctions—including targeted designations by the United Kingdom and a sanctions package by the European Union—and non-NATO allies promised tough sanctions in close coordination. These actions are only among a few of several tools we expect the United States and its allies will use in the coming days and weeks as Russia continues to stoke military tension in the region.

Russia's decision to order troops into parts of eastern Ukraine is "the beginning of a Russian invasion," President Biden said on Tuesday as he announced a ...

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The European Union, acting in tandem with the United States and Britain, hopes to restrain Moscow by keeping bigger penalties in reserve.

“If Russia attacks a country in the center of Europe we have to be prepared to be bold in our response, and that means economic and financial sanctions that are far-reaching and biting,” he said. “In the shock of invasion, we’re ready to be tough. But there are “a lot of domestic taboos,” he added, especially around energy. “The E.U.’s sanctions package was carefully assembled to avoid divisions,” said Emre Peker, the Europe director of Eurasia Group, a risk consultancy. And the cost to Europeans of the penalties on Russia will not be equally distributed, he added. “Every indication is that Russia is continuing to plan for a full-scale attack of Ukraine,” he said, adding: “It’s never too late not to attack.’’ Prime Minister Boris Johnson called it “the first tranche, the first barrage of what we are prepared to do.” The diplomats added that the penalties would include European Union-wide asset freezes and travel bans. “We consider the Donbas part of Ukraine. I wouldn’t say it is a fully fledged invasion, but Russian troops are on Ukrainian soil.” The European Union cannot afford not to reach an agreement, Ms. Tocci added. But their timing suggested that the European Union, United States and Britain were acting with a high degree of coordination and unity. But Mr. Scholz said that he would withdraw an existing government judgment that the pipeline posed no security risks.