BackObama said to ready sanctions on Russian industries over Ukraine
The sanctions would apply to technology used to explore, produce, transport, or deliver natural gas, crude and or their refined products
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Houston: US is preparing sanctions aimed at specific areas of the Russian economy, including energy and technology, as the Obama administration readies the next steps to pressure Russia over the Ukraine crisis, according to three people briefed on the plans.
The European Union, some of whose members have expressed concern that additional penalties against Russia risk harming their economies, may not agree to the next phase of sanctions being considered by the US, according to two of the people, who asked for anonymity, citing the sensitivity of the deliberations.
The US government has held discussions with Canada, the UK and Australia on this latest round of penalties, said one of the people. The sanctions would apply to technology used to explore, produce, transport, or deliver natural gas, crude and or their refined products, two of the people said.
Any US move to target sectors of Russia’s economy would mark an escalation of penalties against Russian President Vladimir Putin’s government for fomenting turmoil in Ukraine. Putin on Tuesday asked lawmakers in Moscow to rescind the authorization they gave him on 1 March to use force in Ukraine, a conciliatory gesture that sent shares and the ruble higher.
Two of the largest US business groups are preparing to break ranks with the Obama administration over any further penalties on Russia, citing potential damage to US companies.
White House spokesmen didn’t respond to messages seeking comment after normal business hours.
Obama-Cameron call
President Barack Obama and UK Prime Minister David Cameron agreed on Tuesday to work together to implement more coordinated measures against Russia if Putin fails to take immediate steps to deescalate tensions in Ukraine, according to a White House statement.
In Ukraine, violence continued in violation of a cease-fire agreed to by the government in Kiev and pro-Russian separatist groups. Rebels on Tuesday shot down a government helicopter with a shoulder-fired missile in the eastern city of Slovyansk, killing all nine people on board, according to the Ukrainian defence ministry.
The incident led Ukrainian President Petro Poroshenko to call for immediate talks with leaders in Russia, Germany and France. Ukraine will end its week-long truce early if separatists continue to attack government forces during a cease-fire supported by both Russian President Vladimir Putin and rebel leaders, Poroshenko said on his website late Tuesday.
Case-by-case reviews
Under the latest plans being considered by the US, product sales and transfers of technology covered by the sanctions would be subject to case-by-case reviews, said one of the people, with the government being allowed to approve, reject or delay any transactions.
One of the people briefed on the planning said that administration officials had portrayed that approach as one that would allow them to use a scalpel to target individuals and to ratchet pressure up and down as events in Ukraine unfold.
US-based companies are the largest source of foreign investment in Russia, primarily in technology and financial services, according to a 2013 report by Ernst & Young. They include General Electric Co., Boeing Co., and Caterpillar Inc.
The US Chamber of Commerce and National Association of Manufacturers are preparing to run newspaper advertisements on Thursday in the New York Times, Wall Street Journal and Washington Post, warning that more sanctions risk harming US workers and businesses, said a person familiar with the plans, who asked not to be identified to discuss private deliberations.
Business groups
The business associations’ advertisements assert that the only effect of additional sanctions would be to bar US companies from foreign markets and cede business opportunities to firms from other countries, according to a copy provided by the person familiar with the plans.
The ads, written as a joint statement from Jay Timmons and Thomas Donohue, respectively the presidents of the manufacturers association and the chamber, don’t name Obama. They instead address actions under consideration by some US policymakers.
Sally-Shannon Birkel, a spokeswoman for the chamber, declined to comment. Representatives from the manufacturers association didn’t respond to requests for comment about the ad.
Laura Lucas Magnuson, a White House National Security Council spokeswoman, said in an e-mail that the administration has had frequent conversations with business leaders on this issue since the beginning of the crisis to understand their concerns. The US can’t proceed with business as usual, she said. Bloomberg
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