By Michael Hernandez
WASHINGTON, D.C.
U.S. President Barack Obama announced Tuesday that Washington would impose additional sanctions on Russia’s energy, finance and arms sectors as the U.S. and its European allies continue to pressure Russian President Vladimir Putin to cease support for separatist rebels in eastern Ukraine.
“Russia’s actions in Ukraine and the sanctions that we’ve already imposed have made a weak Russian economy even weaker,” Obama said while addressing reporters at the White House.
“The major sanctions we’re announcing today will continue to ratchet up the pressure on Russia, including the cronies and companies that are supporting Russia’s illegal actions in Ukraine.”
The new sanctions prohibit U.S. citizens from providing new financing to three Russian state-owned banks - Bank of Moscow, Russian Agricultural Bank, and VTB Bank OAO, Russia’s second-largest banking group.
Moreover, United Shipbuilding Corporation, a state-owned firm that designs and constructs ships for the Russian navy, was also designated Tuesday.
U.S. persons or persons within the U.S. are now prohibited from doing business with the firm, and any assets it has within the U.S. must be frozen.
"These actions, along with actions announced today by the European Union, significantly increase the costs to Russia for its efforts to undermine Ukraine's sovereignty,” David S. Cohen, the Treasury Department's Under Secretary for Terrorism and Financial Intelligence, said in a statement released to the press. “We are prepared to continue to expand these sanctions if Russia refuses to change course."
The U.S.’ announcement follows a set of similar sanctions by the European Union Tuesday.
Herman Van Rompuy, the President of the European Council, said that the EU sanctions - which target Russia’s financial, energy and military sectors - constitute a “strong warning” to Russia.
They include an embargo on Russia’s future sales of firearms, and limits on the trade of technology in such areas as mining, engineering and oil production.
Russia’s banking sector was also hit as Russia’s state-owned banks were barred from engaging in financial transactions of stocks and bonds with EU-based banks.
Despite the U.S. and EU’s announcement of new sanctions, Obama was adamant that the West and Russia were not locked in a new Cold War.
“It’s not a new cold war,” he said. “What it is is a very specific issue related to Russia’s unwillingness to recognize that Ukraine can chart its own path.”
The U.S. has previously sanctioned senior Russian officials, Russian businesses and businesspeople, and Ukrainian rebel leaders in an attempt to force Russia to change course in Ukraine.
At least 500 people have been killed since pro-Russian separatists in the eastern part of Ukraine declared their intention to break away from Ukraine.
Tensions between Moscow and Western powers have risen exponentially after the downing of a Malaysian airplane on July 17 close to Ukraine’s border with Russia, killing 298 people on board.
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