Written By The US government has imposed a new round of sanctions on several Russian companies, including banks, defence contractors and oil companies. The move comes amid escalating tensions between Washington and Moscow over a litany of geopolitical issues. This latest action by the Trump administration is seen as a strong rebuke to Russia’s disregard for international laws and norms. We’ll take a closer look at the details of these sanctions and the potential implications for Russia’s economy.
What are the new sanctions?
The United States has announced a new round of sanctions against Russian banks and defence companies. The move is in response to Russia’s continued aggression in Ukraine, as well as its involvement in the Syrian civil war.
The new sanctions target three Russian banks – Sberbank, VTB Bank and Gazprombank – as well as the defence companies Rostec and Rosoboronexport. The banks will be prohibited from accessing US capital markets, while the defence companies will be subject to export restrictions.
The move is likely to further escalate tensions between the US and Russia, which are already at a post-Cold War high. It also comes just days after President Trump approved a major arms deal for Russia’s rival, China.
Who are they against?
The new US sanctions target Russian banks and defence companies in response to the country’s continued support of Syrian President Bashar al-Assad.
The US Treasury Department said the sanctions would bar US companies from doing business with three Russian banks – Gazprombank, VEB and Rosoboronexport – and two defence firms – Oboronprom and United Aircraft Corporation.
In a statement, Treasury Secretary Steve Mnuchin said the action was “in response to Russia’s continued engagement in activities that destabilise eastern Ukraine and undermine Western democracies”.
He said the sanctions were also in response to “Russia’s occupation of Crimea, its use of a chemical weapon in Salisbury, United Kingdom, and its ongoing cyber-attacks including against US critical infrastructure”.
What is the reason for the sanctions?
The United States has announced new sanctions against Russian banks and defence companies, as tensions between the two countries continue to mount. The sanctions target six Russian banks, including the state-owned VTB Bank and Sberbank, as well as three defence companies, including the Kalashnikov Concern.
The US Treasury Department said that the sanctions were in response to “Russia’s ongoing occupation of Crimea and its aggression in Ukraine”. It also accused the Russian government of “providing material support to the Assad regime” in Syria.
The sanctions come just days after US President Donald Trump met with Russian President Vladimir Putin at the G20 summit in Hamburg. Trump said afterwards that he had “reaffirmed our commitment to work together on critical national security issues”, but did not mention the sanctions.
The move is likely to further escalate tensions between the two countries, which have been at loggerheads over a number of issues in recent years.
How will this affect Russia?
The new sanctions will freeze the assets of five Russian banks and three defence companies, including the state-owned United Shipbuilding Corporation. This will make it difficult for them to finance themselves or do business internationally.
The move comes amid heightened tensions between the US and Russia over the latter’s involvement in the Syrian conflict and alleged meddling in the 2016 US presidential election. It also follows a series of tit-for-tat diplomatic expulsions between the two countries.
The Russian government has condemned the new sanctions as “unjustified” and “short-sighted”. Kremlin spokesman Dmitry Peskov said they would further damage relations between Moscow and Washington.
How will this affect the US?
The Trump administration has imposed new sanctions on Russia, targeting its banking and defence sectors. The move is designed to punish Moscow for its involvement in the 2018 poisoning of a former Russian spy in the UK, as well as for meddling in the 2016 US presidential election.
The sanctions will prohibit US banks from lending to the sanctioned Russian entities, and will block any assets they may have in the United States. American companies will also be barred from doing business with them.
The Trump administration says the goal of the sanctions is to “change Russia’s behaviour.” But it’s unlikely that they will have much effect, given that Russia has already been hit with numerous sanctions over the years, and has shown no signs of altering its behaviour.
In fact, some experts believe that the new sanctions could actually backfire, by giving Russian President Vladimir Putin more ammunition to portray the United States as an enemy of his country. This could further inflame tensions between the two nations, and make it even harder to cooperate on international issues like containing Iran’s nuclear program or ending the war in Syria.
Conclusion
With the US imposing new sanctions on Russian banks and defence companies, it is clear that relations between the two countries are becoming increasingly strained. This move will likely result in further economic hardship for Russia as its economy continues to struggle due to other international pressures. It remains to be seen how the Kremlin will respond to this latest set of punitive measures but what is certain is that political tensions between Washington and Moscow are unlikely to improve anytime soon.
