U.S. President Joe Biden on April 15 imposed sanctions against Russia in reprisal for its election interference and cyberattacks against the U.S., as well as other “harmful foreign activities.”
The activities include efforts to “foster and use transnational corruption to influence foreign governments, pursue extraterritorial activities targeting dissidents or journalists, undermine security in countries and regions important to U.S. national security and violate well-established principles of international law, including respect for the territorial integrity of states,” according to a White House statement.
The sanctions fulfill Biden’s earlier promise that Putin would “pay a price” for meddling with the 2020 U.S. presidential election.
U.S. financial institutions were forbidden from buying government bonds issued by Russia’s central bank and sovereign wealth fund after June 14, which is meant to hurt Russia’s ability to raise money in international markets.
The U.S. will also expel 10 Russian diplomats from Washington.
Swedish economist Anders Aslund, a senior fellow at the Atlantic Council, said that “this is a tight check on Russia’s government financing.”
“As of March 31, Russia’s total government debt was $61.4 billion according to Russian Central Bank. Of this, $20.6 billion was in foreign currencies and $39.9 billion in rubles. Now both channels are closed for new financing,” Aslund wrote on Twitter.
Timothy Ash, a senior emerging markets sovereign strategist at BlueBay Asset Management, questioned whether U.S. financial institutions will be able to buy Russian debt in the secondary market, which could undermine the sanctions’ effectiveness.
Daniel Fried, an Atlantic Council senior fellow and a former U.S. ambassador, concluded that “in sum, at first reading, the Biden administration has put together significant steps to push back against Putin’s aggression. This is no reset or wishful thinking, but a clear-eyed assessment of what the US and its friends and allies are dealing with. Not included are sanctions related to the latest Kremlin threats against Ukraine. These are being developed, I hear. Today’s actions make the prospect of additional steps more credible.”
A total of 46 Russian entities and individuals have been sanctioned directly, including 32 who are responsible for “carrying out Russian government-directed attempts to influence the 2020 U.S. presidential election, and other acts of disinformation and interference.” An additional eight are “associated with Russia’s ongoing occupation and repression in Crimea.” According to the report, the European Union, the U.K., Australia, and Canada have joined these Crimean sanctions.
“The transatlantic community stands united in supporting Ukraine against unilateral Russian provocations along the Line of Contact in eastern Ukraine, in occupied Crimea, and along Ukraine’s borders, as well as agreeing on the need for Russia to immediately cease its military buildup and inflammatory rhetoric,” the White House readout says.
Additionally, “the U.S. Department of the Treasury designated six Russian technology companies that provide support to the Russian Intelligence Services’ cyber program, ranging from providing expertise to developing tools and infrastructure to facilitating malicious cyber activities,” the readout says.
Biden issued a separate letter to the U.S. Congress, activating the International Emergency Economic Powers Act.
“I hereby report that I have issued an Executive Order declaring a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the U.S. by specified harmful foreign activities of the Government of the Russian Federation,” states the letter.
The Emergency Economic Powers Act allows the president to block transactions and freeze assets to deal with the threat. It allows the president to freeze assets and confiscate property connected with a country, group, or person that took part in the harmful foreign activities.
Read More: FACT SHEET: Imposing Costs for Harmful Foreign Activities by the Russian Government
The security situation in eastern Ukraine has hit a new low in mid-March as Russia concentrated significant military forces near the Ukrainian border and refused to extend a moribund ceasefire in Donbas.
Over 80,000 Russian soldiers are now stationed within striking distance from Ukrainian positions. They are equipped with the latest Russian military equipment, such as Iskander ballistic missile systems capable of neutralizing Ukraine’s anti-aircraft defenses.
In late March, Ukraine’s commander-in-chief Ruslan Khomchak told parliament that Russia was expected to mass nearly 25 new battalion task groups in addition to the 28 that are already deployed near the Ukrainian border and in occupied Donbas. Russia’s assets include 28,000 militants and 2,000 Russian instructors in Donbas and 32,700 regular troops in Crimea.
Read More: Tensions skyrocket as Russia masses forces near eastern Ukraine
On March 26, four Ukrainian military service members were killed and two more injured in action in the Donbas war zone as Russian-backed militants again attacked Ukrainian lines in the afternoon despite the current ceasefire.
