Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
mains Test Series 2018
More U.S. & E.U. Sanctions on Russia
Mar 21, 2014

On 20 March, U.S. President Barack Obama announced new sanctions against senior Russian officials and a bank in a move to impose additional costs on Russia. He said, “Based on the executive order that I signed in response to Russia's initial intervention in Ukraine, we're imposing sanctions on more senior officials of the Russian government."

The US is also imposing sanctions on a number of other individuals who provide material support to the Russian leadership, as well as a bank that provides material support to these individuals. These steps are part of the U.S. response to Russia's moves in Crimea.

The new punitive measures came following a first round of sanctions Obama announced on 17 March against 11 Russian and Ukrainian officials. The latest measures cover 20 Russian individuals, who will have their assets in the United States frozen and be barred from doing business in relation to the United States.

Bank Rossiya, the bank subject to the sanction, will be frozen out of the dollar. The bank provides services to many of the senior Russian government officials being sanctioned. It is the 17th largest bank in Russia with about 10 billion U.S. dollars in assets.

The new sanctions would not only have a significant impact on the Russian economy, but could also be disruptive to the global economy. The US President said, “Russia must know that further escalation will only isolate it further from the international community."

On 18 March, Russian President Vladimir Putin signed a treaty with the leaders of Crimea to accept the Republic of Crimea and the city of Sevastopol as part of the Russian territory. The agreement follows the decision by the Crimean parliament to declare independence from Ukraine after official results from the referendum on March 16 showed 96.77 percent of Crimean voters chose to join Russia.

The US President warned Russia not to take further military actions in southern and eastern Ukraine, saying that the US has been working closely with its European partners to develop more severe actions should Russia continue to escalate the situation. He urged Congress and the IMF to move more swiftly in providing economic aid to Ukraine in order to stabilize its economy and meet the basic needs of the Ukrainian people. Expressions of support are not enough, we need action."

"We've already increased our support for our Eastern European allies and we will continue to strengthen NATO's collective defence, and we will step up our cooperation with Europe on economic and energy issues as well."

While imposing tough sanctions on Russia, Barack Obama emphasized that diplomacy between the United States and Russia continues and diplomacy remains a solution. Russia still has a different path available, one that de-escalates the situation and one that involves Russia pursuing a diplomatic solution with the government in Kiev, with the support of the international community."

E.U. also put Sanctions: The European Union followed the U.S. in intensifying sanctions against Russian President Vladimir Putin’s inner circle to pressure his government to defuse the global standoff over Ukraine.

EU leaders added 12 names to their list of Russians and Ukrainians punished with asset freezes and travel bans. The bloc acted a day after the U.S. penalized 20 Russian officials and business leaders as having ties to Russianm president.

With Russia on the verge of annexing Crimea and massing troops near Ukraine’s eastern border, the U.S. and the E.U. are moving to coordinate their response as they press Russia to back down. The crisis marks the worst confrontation between the West and Russia since the Cold War ended more than two decades ago.


Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.

http://www.drishtiias.com/upsc-current-affairs-article-More-U.S.--E.U.-Sanctions-on-Russia