US expels Russian diplomats, slaps fresh round of sanctions on Russia as Kremlin warns of retaliation

RFE/RL
Thu, 15 Apr 2021 13:48 UTC

© Andrew Harnik/AFP

US President Joe Biden

The U.S. has imposed a new round of sanctions against Russia targeting what it calls the "harmful" foreign activities of Moscow.

The administration of U.S. President Joe Biden on April 15 announced the expulsion of 10 Russian diplomats and sanctions against dozens of other Russian people and companies as it moved to hold the Kremlin accountable for interference in last year's presidential election and the hacking of federal agencies.

It also placed limits on the Russian sovereign debt market in steps sure to anger Moscow. In a statement from the White House:

"Today, President Biden signed a new sanctions executive order that provides strengthened authorities to demonstrate the Administration's resolve in responding to and deterring the full scope of Russia's harmful foreign activities."

The sanctions, which Russia swiftly denounced while warning of retaliation, are certain to exacerbate an already tense relationship between the U.S. and Russia.

Biden told Russian President Vladimir Putin earlier this week in a phone call to "de-escalate tensions" following a Russian military buildup on Ukraine's border, and said the U.S. would "act firmly in defense of its national interests" regarding Russian intrusions and election interference.

Biden's executive order authorizes the U.S. government to sanction any sector of the Russian economy and use it to restrict Russia's ability to issue sovereign debt. It also bars U.S. financial institutions from taking part in the primary market for ruble-denominated Russian sovereign bonds from June 14. U.S. banks have been barred from taking part in the primary market for non-ruble sovereign bonds since 2019.

A senior Biden administration official said:

"Judging from history, removing U.S. investors as buyers in this market can create a broader chilling effect that raises Russia's borrowing costs, along with capital flight and a weaker currency. And all of these forces have a material impact on Russia's growth and inflation outcomes."

The U.S. already bans American investors from buying newly issued Russian government foreign-currency debt.

"As we take these actions, we also want to be clear that we have no desire to be in an escalatory cycle with Russia. We intend these responses to be proportionate and tailored to the specific past activities, past actions that Russia has taken. We have indicated that we seek a stable and predictable relationship going forward. President Biden spoke with President Putin earlier this week and conveyed that directly.

Hacking Allegations

U.S. intelligence officials have pointed the finger at Russia for a massive hack known as SolarWinds that hit large swaths of the U.S. public and private sectors last year. Russia has denied the accusations. Widely used software is believed to have been infected with malicious code, enabling hackers to access at least nine U.S. agencies. White House national-security adviser Jake Sullivan said last month that Washington would respond to SolarWinds in "weeks, not months."

The statement also named the Russian agency that U.S. authorities blame for the hack.

"Today the United States is formally naming the Russian Foreign Intelligence Service (SVR), also known as APT 29, Cozy Bear, and The Dukes, as the perpetrator of the broad-scope cyber espionage campaign that exploited the SolarWinds Orion platform and other information technology infrastructures. The U.S. Intelligence Community has high confidence in its assessment of attribution to the SVR."

Comment: Maybe so? Maybe no! The US intel agencies have 'such a spotless record' when it comes to accuracy in attributing misdeeds to Russia.

Besides that hack, U.S. officials last month said that Putin authorized moves to help former U.S. President Donald Trump in his unsuccessful bid for reelection as president.

The measures announced April 15 include sanctions on six Russian companies that support the country's cyberactivities, in addition to sanctions on 32 individuals and entities accused of attempting to interfere in last year's presidential election, including by spreading disinformation.

"This action seeks to disrupt the coordinated efforts of Russian officials, proxies, and intelligence agencies to delegitimize our electoral process. The U.S. government will continue to pursue those who engage in such activity."

The 10 diplomats being expelled include representatives of Russian intelligence services, the White House said.

The statement also said that Washington was using diplomatic, military, and intelligence channels to respond to reports that Russia encouraged the Taliban to attack U.S. and allied troops in Afghanistan based on the "best assessments" of the intelligence community.

The White House did not publicly confirm the reports, but said that "the safety and well-being of U.S. military personnel, and that of our allies and partners, is an absolute priority of the United States."

NATO and the European Union both expressed solidarity with the U.S. move, the statement said:

"NATO Allies support and stand in solidarity with the United States, following its 15 April announcement of actions to respond to Russia's destabilizing activities."

EU's foreign policy chief Josep Borrell said in the statement;

"The European Union and its Member States express their solidarity with the United States on the impact of malicious cyber activities, notably the SolarWinds cyber operation, which, the United States assesses, has been conducted by the Russian Federation. The compromise affected governments and businesses worldwide, including in EU Member States."

In reaction to the announced sanctions, U.S. Ambassador to Russia John Sullivan was summoned to the Russian Foreign Ministry, which said "a response to the sanctions is inevitable." Just before the sanctions were announced, Kremlin spokesman Dmitry Peskov told the TASS news agency that any sanctions would be considered "illegal."

Comment: Is Biden's rare form of diplomacy cruising for a major international bruising? Insulated by NATO, probably not.

With the US and NATO in cahoots, Russia pledges retaliation:

The Russian Foreign Ministry announced on Thursday that it would soon respond in kind to a new package of sanctions unveiled against the country by US President Joe Biden.

Maria Zakharova, the ministry's spokeswoman, told reporters that retaliation against the move was "unavoidable," and that the American ambassador, John Sullivan, had been summoned for "tough talks". "I would hardly have said this before, but I can say it now: It's not going to be a pleasant meeting for him."

Just weeks ago, the country's Deputy Foreign Minister Alexander Pankin warned that the US may resort to attacking bonds as part of "a deliberate calculation to create a toxic atmosphere around Russian securities in order to reduce their investment potential." He revealed that Moscow has already been working to create a battle plan to limit the effect such sanctions would have on the economy.

Ned Price, the State Department spokesman, also tweeted that "we are sending a clear message to Moscow" with the new measures.

However, Dmitry Polyanskiy, Russia's deputy permanent representative to the UN, replied saying that "now it is our turn to 'hold the US to account' for promoting unsubstantiated allegations and unfriendly moves. That's how it works in diplomacy."

Vyacheslav Volodin, the speaker of Russia's State Duma, claimed the measures demonstrated that the "whole arsenal of accusations has been exhausted, and the US is going in a circle." He added that "by imposing sanctions, they punish themselves. In the end, they will have to build relationships that they themselves have destroyed."

Responding to the news, the US-led NATO military bloc said that its members "support and express their solidarity" with Washington, and warned that "Russia continues to adhere to a recurring pattern of destabilizing behavior." The statement concluded that its constituency nations "will continue to work in close consultation on how to respond to Russian actions that pose a threat to Euro-Atlantic security."

The EU's foreign policy chief, Josep Borrell, added his voice to those backing Biden's move. "We share the concerns of our partners about the increasing number of malicious cyber activities," the former Spanish foreign minister said. "All actors must refrain from irresponsible and destabilizing behavior in cyberspace."

And, the potential Biden-Putin meeting Joe spoke about? Nyet!

Speaking to reporters on Thursday morning, Putin's spokesman, Dmitry Peskov, said that the White House's invitation to meet "in a third country in the coming months" would not be possible to organize, at least in the short term. When asked whether the talks were likely to go ahead within that timeframe, Peskov said, "No, a bilateral meeting of course cannot be organized that quickly." He added that the

"issue is still under analysis. It is clear there is no smoke without fire. For now, we will not be commenting on newspaper reports, and we will be waiting to see if any specific decisions are announced officially. The fact that the sanctions are probably being discussed will in no way help the likelihood of such a meeting taking place - that can be stated unambiguously.

"Whether these things hinder [the proposal] or not, that will be a decision for the presidents. There was a proposal from the president of the United States, and then it will be a subject for a decision by the president of Russia.

"As for the sanctions themselves, we condemn any such measures - we consider them illegal - and, in any case, the principle of reciprocity applies here. Reciprocity that allows us to best ensure our own interests are being met."

There has been skepticism in Moscow over whether the White House is prepared for the kind of compromise needed for constructive talks to take place. In comments to journalists a fortnight ago, Kremlin spokesman Dmitry Peskov said...the two nations must treat each other as equals.