U.S. President Joe Biden signed an executive order Tuesday slapping sanctions on two Russia-backed separatist republics in eastern Ukraine, in a fast response to Russian President Vladimir Putin's decision to recognize the territories as independent states.
Biden signed an executive order prohibiting new commerce, investment, and finance by American citizens to, from, or within Ukraine's so-called Donetsk and Luhansk People's Republics.
Additionally, the directive enables the imposition of sanctions against "any person judged to be operating in particular areas of Ukraine," White House Press Secretary Jen Psaki stated.
Psaki stated that the Biden administration will announce additional actions "in response to Russia's flagrant violation of its international obligations today."
"We can, must, and will unify in our calls for Russia to remove its forces, return to the negotiating table, and work toward peace."
Russian President Vladimir Putin recognized two Ukrainian breakaway regions as autonomous on Monday and directed Russia's military ministry to deploy soldiers there to "maintain the peace," escalating tensions with the West over Ukraine.
Officials in the Biden administration said Putin's decision did not trigger a broad package of penalties that the U.S. and its allies have been preparing in case Russia invades Ukraine, owing to Russia's pre-existing presence in the region.
Rather than that, the White House responded with separate, less punitive, and more targeted sanctions.
Additional steps, Psaki stated, would be announced on Tuesday. These, a second White House spokesperson stated, will be focused at Russia.
Reuters was unable to ascertain what sanctions or export controls may be announced on Tuesday, but the Biden administration has prepared an initial package of sanctions against the country, sources said over the weekend.
Reuters was unable to ascertain what sanctions or export controls may be announced on Tuesday, but the Biden administration has prepared an initial package of sanctions against the country, sources said over the weekend.
The sanctions are intended to wreak havoc on the Russian economy by severing "correspondent" banking links between targeted Russian institutions and U.S. financial institutions that facilitate international payments.
The U.S. will also use its most potent sanction against certain Russian individuals and companies by adding them to the Specially Designated Nationals (SDN) list, effectively barring them from the U.S. banking system, prohibiting them from trading with Americans, and freezing their U.S. assets, according to the same sources.
Export controls could also be included in the package, but they are unlikely to have the same immediate impact and will likely "degrade Russia's ability to conduct industrial production in a few critical industries."
