Draconian sanctions. What USA is afraid of Russia

Драконовские санкции. Чем США пугает Россию

In the United States launched the mechanism for the consideration of a package of measures against Russia, which received the unofficial title of “draconian sanctions.”

The United States will continue to impose sanctions against Russia from-for poisonings with Sergei Skripal.

In August, I was introduced the first package of restrictions, to avoid the introduction of a second package Russia had to fulfill certain conditions. Congress gave Russia 90 days to explain the situation with poisoning Skrobala in Salisbury, as well as to ensure that no longer be produce and use chemical weapons.

Moscow did nothing.

What will be new sanctions and whether they are too “draconian”?

Limiting

A second package of sanctions involves the introduction of the ban for American banks to provide loans to the Russian government, if it is not loans for the purchase of food or agricultural products.

The almost total prohibition of trade. The exception is U.S. exports of goods in the agricultural sector.

The limitation or freezing of diplomatic relations between the United States and the government of Russia.

The ban on air travel companies, which are controlled by the government. Under this provision are subject to Aeroflot.

The law also envisages the introduction of personal sanctions against people involved in the proliferation of chemical weapons.

We are talking about a ban on any contracts and transactions between the U.S. government and people from the “black” list. In addition, it is prohibited to import into the US of products or services produced by those who came under sanctions, or related companies.

The exceptions are goods or services that are especially significant for U.S. security, or to replace the vendor.

In the USA all ready

“Today we informed the Congress that the Russian government has not fulfilled the previously stated criteria. Therefore, triggers the introduction of a second round of sanctions. The law does not require the entry of sanctions in force today. So we do not disclose the entry into force of any restrictions,” – said the representative of US state Department David Tesler.

“The sanctions are working. They cause losses to the Russian authorities, as well as those who help Russia to carry out its subversive activities. We make retribution for the actions of all these actors was more,” said Tesler.

“We want to convey to them the idea that we can not continue with impunity to commit such acts. Sanctions will remain in place until then, until we see a fundamental change of behaviour,” he added.

There are other measures

In parallel with the “draconian sanctions” to the U.S. Congress is considering a bill, which its authors have dubbed “the sanctions of hell.”

In the economic part of the bill contains a prohibition on transactions and freezing assets in the United States of seven Russian banking structures that are already in the sanctions regime, including Sberbank, VTB, VEB and PSB.

In practice, this will mean the inability of these banks standard dollar settlements through correspondent accounts in U.S. banks.

In addition, the text contains the actual ban on operations with Russian debt with a maturity of up to two weeks (but this will only apply to new releases).

The document proposes to extend monitoring violations of sanctions on the activities of insurance companies and destinations, as well as to recognize Russia as a state sponsoring terrorism.

Democrats push

The democratic party after the midterm elections in the United States took control of the House of representatives – the lower house of Congress and to promote tougher sanctions, such as those hit by a new sovereign debt of Russia, writes The New York Times.

Democrats also “will try to put pressure on trump to enforcement of all sanctions of the wide-ranging bill, which he reluctantly signed in August of 2017”, – stated in the material.

Also, congressmen can use their right to organize questioning in Parliament to find out more about what trump has discussed with Russian President Vladimir Putin behind closed doors in Helsinki.

“The white house almost never told the details of the meeting,” – said in the article.

The house of representatives, led by Democrats, also wants stricter to punish Russia for interference in the American presidential election and its aggression against Ukraine, as well as intervention in the civil war in Syria.

Earlier, the question of whether the United States to impose sanctions on the owners of Russian sovereign debt, the White house adviser on national security Affairs John Bolton said he did not know about “any sanctions against the state debt”, however, explained that the new restrictions could hurt the national debt indirectly.

The consequences

The announcement of the first portion of sanctions led to the fall of the ruble to two-year low. At the first stage of the ban the export of technology that can be used for military purposes.

The state Department did not say when it will be introduced the next batch of sanctions against Russia.

Russian experts believe that the Americans will not go to the end, and sanctions will not include all of the promised measures. To reduce the level of diplomatic relations, or flight restrictions, or ban of exports and imports might not arrive ,according to the President of the Russian public movement “Union of Right Forces” Leonid Gozman.

“The sanctions are destroying the Russian economy not only because certain operations or transactions are forbidden, or more difficult carried out, and the fact that the whole country looks increasingly toxic,” he said.

Russian opposition leader explains that because of this, people will stop to invest to Russia, and those companies that supplied their products to Russia, pereorientirovanija on other sales channels and return it back after the lifting of sanctions will not be easy.

First Vice-President of Russian club of financial Directors ‘ Tamara Kasyanov recalled that the sanctions will be discussed with Congress. The exact impact could not yet be assessed, but one thing is certain — Russia is not the first time confronted with such measures.

“We cannot say that the sanctions have improved our lives, but they, in particular, helped to begin the revival of our industry and has given greater stability to our financial system that has learned to cope better with external shocks.The problem is that this process is quite sluggish for four years, the progress was very small for such a large country with such serious resource, as Russia, of course, can not be called a great achievement. Therefore, the introduction of new sanctions, apparently, we complicate life and can cause a decrease in economic growth in 2019,” – said Kasyanov.

What they say in Russia

In the case of the introduction of new US anti-Russian sanctions nothing critical will happen, and the Russian economy “can handle it”, said Prime Minister Dmitry Medvedev.

He called the introduction of sanctions by the problems and stressed that the government will support “certain large companies”, which will be under sanctions.

“We have adapted to various kinds of restrictions, they even give us some room to improve its economy, create new economic mechanisms. So nothing critical will happen, I’m sure… of Course, we all endure, just a pity that it has to expend energy,” – said Medvedev.

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