Russia’s retaliatory strike. Confronting US sanctions

Kremlin relations

Since July 14, American companies will be prohibited from purchasing Russian debt securities issued by the Russian Central Bank. Such a decree was signed by Joe Biden on April 15, as reported by the press service of the White House.

Also, by presidential decree, sanctions are imposed against 16 individuals and 16 organizations.  Among them are JSC “Pasit”, “FGANU NII”, “NeoBIT” and JSC “AST”. All these organizations, according to the White House, cooperate with the Russian authorities and are involved in interference in the elections. 

“Corruption in the private and public sectors, with the assistance of President Vladimir Putin, has enriched his proxies, who used their illicit business connections to advance the Russian campaign to undermine the US presidential election in 2020,”  the Treasury Department said in a press release.

But either way, the most tangible sanctions are restrictions on the Russian government debt.  Biden’s decree “On blocking property for certain harmful actions of the government of the Russian Federation” prohibits American investors from buying OFZs at auctions of the Ministry of Finance of the Russian Federation.

Response.

The Russian authorities quickly reacted to the White House statement and promptly introduced retaliatory sanctions.  The United States government ordered 10 Russian diplomatic missions to leave the United States, then the Russian authorities ordered exactly the same number of American diplomats to leave Russia.  Also, sanctions have been introduced against 8 officials of the US presidential administration: they are prohibited from entering Russia.

But despite new sanctions and domestic retaliatory measures, the US government cannot be said to be unsettled for dialogue.  On the contrary, on April 16, a day after the White House press release on sanctions, Joe Biden delivered a speech on US-Russian relations.  In it, he said that the telephone conversation with Vladimir Putin on April 13 was “open and respectful.”

“We represent two great powers that bear a great responsibility for global stability.  President Putin and I – we have a significant responsibility to keep this relationship in working order, ”the American leader said. 

Obviously, Biden is set for an open dialogue with Russia and even suggested that President Putin meet in Europe in the summer.

“The United States does not want to start another cycle of escalation and conflict with Russia.  We want stable, predictable relations, ”the American leader emphasized.

photo: Alexander Natruskin
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