U.S. Issues New Sanctions Against Russia
The United States Treasury Department has just posted new increased sanctions against Russia. In this round of sanctions, the U.S. targets several Russian financial entities: Bank of Moscow, Russian Agricultural Bank, and VTB Bank OAO.
Under these new sanctions, the U.S. has prohibited American companies from transacting with these banks, providing financing to the banks, dealing with new debt longer than 90 days maturity, and issuing new equity to the banks.
The European Union has also agreed to increase sanctions against Russia, due to their conduct in Ukraine, with a formal letter coming later this week. Their sanctions will target Russia's access to banking, defense technology and the energy sector, with the exception of natural gas.
President Obama spoke about the situation in Ukraine shortly after the sanctions were issued. Obama noted that forces inside Russia have launched artillery strikes into Ukraine, calling this a "violation of Ukraine's sovereignty." He also noted the increased amount of artillery Russia has transferred to the pro-Russian separatists.
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Yesterday, Obama spoke with leaders in the U.K., Italy, Germany and France. He noted that they are "united in their view" when it comes to dealing with Ukraine and Russia. Obama said that "if Russia remains on this path, the cost on Russia will continue to grow," in reference to the increased sanctions.
In his speech, Obama noted that the sanctions have hit more Russian banks, and will be going after exports specifically. The European Union is joining the U.S., which will aid the effectiveness of the sanctions. The E.U. will cut off financing, stop exporting specific goods (which will make it more difficult for Russia to develop their oil sector), and halt the export of specific military technologies. Obama stressed that the U.S. is "closely coordinating" with Europe, and added that this will make a "weak Russian economy even weaker." Obama stressed that the main tool the U.S. has to use on Russia is their influence on the economy.
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"It did not have to come to this, it did not have to be this way, this is a choice that Russia, and President Putin in particular, has made," said President Obama. "Today the people of Ukraine are seeing that the United States keeps its word."
Following the statement, a reporter asked, "Is this a new Cold War, sir?" Obama calmly replied, "No."
Here are the full details of the U.S. sanctions, courtesy of the Treasury Department:
BANK OF MOSCOW (f.k.a. AKTSIONERNY KOMMERCHESKI BANK BANK MOSKVY, OTKRYTOE AKTSIONERNOE OBSCHCHESTVO; a.k.a. JOINT STOCK COMMERCIAL BANK - BANK OF MOSCOW, OPEN JOINT STOCK COMPANY), 8/15 Korp. 3 ul. Rozhdestvenka, Moscow 107996, Russia; Bld 3 8/15, Rozhdestvenka St., Moscow 107996, Russia; SWIFT/BIC MOSW RU MM; Website www.bm.ru; Email Address holmogorov_ss@mmbank.ru; alt. Email Address info@mmbank.ru; BIK (RU) 044525219; Registration ID 1027700159497; Government Gazette Number 29292940; The following transactions by U.S. persons or within the United States are hereby prohibited: transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity for these persons (listed here), their property, or their interests in property. All other transactions with these persons or involving any property in which one or more of these persons has an interest are permitted, provided such transactions do not otherwise involve property or interests in property of a person blocked pursuant to Executive Orders 13660, 13661, or 13662, or any other sanctions programs implemented by the Office of Foreign Assets Control. [UKRAINE-EO13662].
RUSSIAN AGRICULTURAL BANK (f.k.a. OTKRYTOE AKTSIONERNOE ROSSISKI SELSKOKHOZYAISTVENNY BANK; a.k.a. ROSSELKHOZBANK; a.k.a. ROSSIYSKI SELSKOKHOZYAISTVENNY BANK OAO; a.k.a. RUSSIAN AGRICULTURAL BANK OAO), 3, Gagarinsky Pereulok, Moscow 119034, Russia; 3 Gagarinsky per., Moscow 119034, Russia; SWIFT/BIC RUAG RU MM; Website http://www.rshb.ru; Email Address office@rshb.ru; Registration ID 1027700342890; Government Gazette Number 52750822; The following transactions by U.S. persons or within the United States are hereby prohibited: transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity for these persons (listed here), their property, or their interests in property. All other transactions with these persons or involving any property in which one or more of these persons has an interest are permitted, provided such transactions do not otherwise involve property or interests in property of a person blocked pursuant to Executive Orders 13660, 13661, or 13662, or any other sanctions programs implemented by the Office of Foreign Assets Control. [UKRAINE-EO13662].
VTB BANK OAO (f.k.a. BANK VNESHNEY TORGOVLI ROSSIYSKOY FEDERATSII, CLOSED JOINT-STOCK COMPANY; f.k.a. BANK VNESHNEY TORGOVLI RSFSR; f.k.a. BANK VNESHNEY TORGOVLI, JOINT-STOCK COMPANY; f.k.a. BANK VNESHNEY TORGOVLI, OPEN JOINT-STOCK COMPANY; a.k.a. BANK VTB OAO; a.k.a. BANK VTB, OPEN JOINT-STOCK COMPANY; a.k.a. JSC VTB BANK; f.k.a. VNESHTORGBANK; f.k.a. VNESHTORGBANK ROSSII, CLOSED JOINT-STOCK COMPANY; a.k.a. VTB BANK, OPEN JOINT-STOCK COMPANY), 29, Bolshaya Morskaya str., St. Petersburg 190000, Russia; 37 Plyushchikha ul., Moscow 119121, Russia; 43, Vorontsovskaya str., Moscow 109044, Russia; SWIFT/BIC VTBRRUMM; Website www.vtb.com; Registration ID 1027739609391 (Russia); Tax ID No. 7702070139 (Russia); Government Gazette Number 00032520 (Russia); License 1000 (Russia); The following transactions by U.S. persons or within the United States are hereby prohibited: transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity for these persons (listed here), their property, or their interests in property. All other transactions with these persons or involving any property in which one or more of these persons has an interest are permitted, provided such transactions do not otherwise involve property or interests in property of a person blocked pursuant to Executive Orders 13660, 13661, or 13662, or any other sanctions programs implemented by the Office of Foreign Assets Control. [UKRAINE-EO13662].
This article was originally published at http://www.thewire.com/business/2014/07/us-issues-new-sanctions-against-russia/375267/
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