America’s patience snaps as Biden hits Putin with fresh sanctions

Joe Biden imposes tough new sanctions targeting Russian interests in response to repeated cyberspying and meddling in the presidential election.

Joe Biden(left) and Vladimir Putin.

American patience with Moscow snapped yesterday as President Biden announced sanctions targeting Russian interests in response to repeated cyberspying and meddling in last year’s presidential election.

Biden warned Vladimir Putin on Tuesday during a call that action was imminent. He also expressed a desire for a better relationship with the Russian president, whom he has recently described as “a killer”, proposing to meet him on neutral ground.

Any hopes of improved ties appeared to have dimmed, however, as Biden signed executive orders imposing sweeping moves against the Russian economy and individuals. The orders described the “extraordinary threat to the national security, foreign policy and economy of the United States posed by specified harmful foreign activities of the [Russian government].”

Maria Zakharova, the Russian foreign ministry spokeswoman, said the US ambassador had been summoned for “tough talks” over the sanctions.

The measures include a ban on US financial institutions buying Russia sovereign debt issued after June 14, which will include bonds written by Russian central bank, Russian national wealth fund and the ministry of finance.

Specifically, American banks will be banned from buying rouble-denominated bonds. They were prohibited from buying Russian debt issued in other currencies in 2019. The action will hamper Moscow’s ability to raise finance in international capital markets.

In addition ten alleged Russian spies working in Washington under diplomatic cover will be expelled and a number of Russian companies that have helped the Kremlin’s cyberspying operations will have assets frozen.

The sanctions come after Biden promised retaliation for a number of Russian actions that have irritated the US. A cyberattack blamed on Russian agents affected software made by SolarWinds, a software company, and gave hackers access to thousands of companies and government offices that used its products. Several Russian technology firms that the US says have links to the Kremlin’s cyberspying operations will be sanctioned.

The US also intends to punish 32 people and organisations for their roles in attempting to influence the 2020 presidential election. Posts on social media and other attempts at swaying voters were made by agents, according to US intelligence, with the objective of persuading voters to back Donald Trump.

The measures are also retaliation for Russia’s military intelligence agency, the GRU, offering bounties to the Taliban in Afghanistan to kill US troops. The sanctions will be implemented by the State Department and the US Treasury.

They are “intended to hold Russia to account for its reckless actions”, said Antony Blinken, the US secretary of state. “We will act firmly in response to Russian actions that cause harm to us or our allies and partners. Where possible, the United States will also seek opportunities for co-operation with Russia, with the goal of building a more stable and predictable relationship consistent with US interests.”

Joe Biden and Vladimir Putin in 2011.

The US is also worried about the build-up of Russian forces on Ukraine’s border, amid fears that Moscow could order a fresh invasion, and is dismayed by the treatment of the opposition activist Alexei Navalny. “We remain concerned about Navalny’s health and treatment in prison, and call for his unconditional release,” Blinken said. “Our view is that no single action that we will take or could take in and of itself could directly alter Russia’s malign behaviour,” Jonathan Finer, the deputy national security adviser, told The Washington Post.

One aspect of the Russian economy that was not sanctioned yesterday (Thursday) was the Nord Stream II pipeline project that will take Russian natural gas to Germany and elsewhere in western Europe. Biden spoke to the German chancellor Angela Merkel on Wednesday but it is not clear if the pipeline project was discussed. Asked why the project was not part of the sanctions, Jen Psaki, the White House spokeswoman, said that additional actions would be taken against Moscow should it not change course.

Several Republicans attacked the decision to exclude Nord Stream II. “How does allowing Russia’s pipeline advance America’s interests?” asked Kevin McCarthy, the minority leader in the House of Representatives.

There is concern in Washington, however, not to push Moscow too hard, amid fears of turning the relationship permanently hostile. “The Biden administration has been clear that the United States desires a relationship with Russia that is stable and predictable,” the White House said.

“We do not think we need to continue on a negative trajectory. However, we have also been clear - publicly and privately - that we will defend our national interests and impose costs for Russian government actions that seek to harm us.”

Jake Sullivan, the national security adviser, told CNN that the purpose of the sanctions was to “provide a significant and credible response, but not escalate the situation”.

The expulsion of intelligence agents is the first such action since the Trump administration ordered 60 Russians to leave the US in 2018 as part of the international response to the poisoning of Sergei Skripal and his daughter in Salisbury. Barack Obama expelled 35 individuals in response to Russian meddling in the 2016 election.

The Times