Obama Prepared To Unleash More Sanctions On Russia

Tyler Durden's picture

With almost metronomic frequency, and perhaps related to Putin's emergency meeting of the State Duma, The Wall Street Journal is reporting that the Obama administration is prepared to expand a new set of economic sanctions against Russia if the country doesn't take steps to end Ukraine's conflict with pro-Russia separatist fighters. No details were exposed by the senior administration official, but as WSJ notes, current sanctions don't prevent U.S. entities from doing business with the Russian firms or freeze their assets. We await the new boomerang.

 

As WSJ reports,

The Obama administration is prepared to expand a new set of economic sanctions against Russia if the country doesn't take steps to end Ukraine's conflict with pro-Russia separatist fighters, a senior administration official said.

 

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Under the new sanctions program, the Treasury Department could expand the number of institutions affected and expand the limitations placed on the Russian firms, the senior administration official said. The current rules prevent people or firms with ties to the U.S. from providing medium- and long-term credit to Rosneft, Russia's second-biggest natural-gas producer and two major financial institutions. The Treasury also bars equity financing for some of the firms.

 

The official didn't elaborate on what a broader array of limitations might look like. The current sanctions don't prevent U.S. entities from doing business with the Russian firms or freeze their assets.

 

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But Obama administration officials are prepared to take more extreme steps if necessary that could have a broader economic impact to force Russian cooperation, the official said.

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But the US will keep buying its satellite rockets from them?