This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2014/04/29/world/asia/obama-sanctions-russia.html
The article has changed 13 times. There is an RSS feed of changes available.
| Version 8 | Version 9 |
|---|---|
| U.S. Announces More Sanctions Against Russia | U.S. Announces More Sanctions Against Russia |
| (35 minutes later) | |
| WASHINGTON — The United States on Monday imposed additional sanctions against Russian government officials and companies deemed close to President Vladimir V. Putin, accusing Moscow of failing to live up to its agreement to defuse the crisis in Ukraine. | WASHINGTON — The United States on Monday imposed additional sanctions against Russian government officials and companies deemed close to President Vladimir V. Putin, accusing Moscow of failing to live up to its agreement to defuse the crisis in Ukraine. |
| The Obama administration ordered travel bans and asset freezes for seven Russian officials, including two said to be in Mr. Putin’s inner circle, and froze assets for 17 companies. Thirteen Russian companies will face additional restrictions as the government will cut off the export or re-export of American-made products to them. | The Obama administration ordered travel bans and asset freezes for seven Russian officials, including two said to be in Mr. Putin’s inner circle, and froze assets for 17 companies. Thirteen Russian companies will face additional restrictions as the government will cut off the export or re-export of American-made products to them. |
| Additionally, the State and Commerce Departments announced a new policy to deny export license applications for high-technology items that could contribute to Russia’s military capabilities. The two departments will revoke existing export licenses along those lines, the White House said in a statement. The European Union plans to follow with sanctions on 15 Russians, officials said. | Additionally, the State and Commerce Departments announced a new policy to deny export license applications for high-technology items that could contribute to Russia’s military capabilities. The two departments will revoke existing export licenses along those lines, the White House said in a statement. The European Union plans to follow with sanctions on 15 Russians, officials said. |
| Among those targeted on Monday was Igor I. Sechin, president of the state-owned Rosneft oil company and a longtime Putin adviser. Although administration officials said over the weekend that they also expected Aleksei B. Miller, the head of the energy giant Gazprom, to be targeted, Mr. Obama ultimately chose a list that did not include him. | Among those targeted on Monday was Igor I. Sechin, president of the state-owned Rosneft oil company and a longtime Putin adviser. Although administration officials said over the weekend that they also expected Aleksei B. Miller, the head of the energy giant Gazprom, to be targeted, Mr. Obama ultimately chose a list that did not include him. |
| Others who face sanctions include Dmitri N. Kozak, a deputy prime minister; Vyacheslav V. Volodin, a deputy chief of staff to Mr. Putin; and Aleksei Pushkov, the chairman of the international affairs committee of the State Duma, the lower house of Parliament. The companies targeted included several banks, including Sobinbank, and energy companies like the Stroytransgaz Group and various related entities. | Others who face sanctions include Dmitri N. Kozak, a deputy prime minister; Vyacheslav V. Volodin, a deputy chief of staff to Mr. Putin; and Aleksei Pushkov, the chairman of the international affairs committee of the State Duma, the lower house of Parliament. The companies targeted included several banks, including Sobinbank, and energy companies like the Stroytransgaz Group and various related entities. |
| Stroytransgaz and its related companies form the pipeline construction arm of Gazprom that maintains and expands the Russian domestic natural gas pipeline network, the world’s largest gas pipeline system, and for years the companies have been the focus of suspicion by financial analysts that they are used to siphon money from Gazprom to insiders. Gazprom’s capital expenditures totaled about $24.4 billion in 2013, according to a company statement. The Stroytransgaz companies were initially affiliated with the 1990s-era management of Gazprom, but later shifted to the control of longtime associates of Mr. Putin, including the brothers Arkady and Boris Rotenberg. | Stroytransgaz and its related companies form the pipeline construction arm of Gazprom that maintains and expands the Russian domestic natural gas pipeline network, the world’s largest gas pipeline system, and for years the companies have been the focus of suspicion by financial analysts that they are used to siphon money from Gazprom to insiders. Gazprom’s capital expenditures totaled about $24.4 billion in 2013, according to a company statement. The Stroytransgaz companies were initially affiliated with the 1990s-era management of Gazprom, but later shifted to the control of longtime associates of Mr. Putin, including the brothers Arkady and Boris Rotenberg. |
| In imposing sanctions on Mr. Sechin, the administration has targeted a top partner of ExxonMobil, which has multiple joint ventures with Rosneft. It is not known if Mr. Sechin has any assets in the United States to freeze, but he will no longer be permitted into the country to consult with his ExxonMobil partners. ExxonMobil lawyers have been studying the possible ramifications in anticipation of the administration move, but a company spokesman said Monday that it had no comment. | In imposing sanctions on Mr. Sechin, the administration has targeted a top partner of ExxonMobil, which has multiple joint ventures with Rosneft. It is not known if Mr. Sechin has any assets in the United States to freeze, but he will no longer be permitted into the country to consult with his ExxonMobil partners. ExxonMobil lawyers have been studying the possible ramifications in anticipation of the administration move, but a company spokesman said Monday that it had no comment. |
| The firms targeted on Monday were all tied to Russian businessmen who were targeted in previous rounds of sanctions. Eleven of the companies were linked to Gennady N. Timchenko, including the Volga Group, his private investment holding company. Mr. Timchenko is a co-founder of the Gunvor Group, a commodities trading firm in which the Treasury Department has previously said Mr. Putin has personal investments. Gunvor has adamantly denied that Mr. Putin has any financial ties to the company, and Mr. Timchenko has sold his shares in Gunvor. | The firms targeted on Monday were all tied to Russian businessmen who were targeted in previous rounds of sanctions. Eleven of the companies were linked to Gennady N. Timchenko, including the Volga Group, his private investment holding company. Mr. Timchenko is a co-founder of the Gunvor Group, a commodities trading firm in which the Treasury Department has previously said Mr. Putin has personal investments. Gunvor has adamantly denied that Mr. Putin has any financial ties to the company, and Mr. Timchenko has sold his shares in Gunvor. |
| Three other firms targeted on Monday were tied to Arkady and Boris Rotenberg: InvestCapitalBank, SMP Bank and Stroygazmontazh. Three others were subsidiaries of Yuri V. Kovalchuk’s Bank Rossyia: Abros, Zest and Sobinbank. | Three other firms targeted on Monday were tied to Arkady and Boris Rotenberg: InvestCapitalBank, SMP Bank and Stroygazmontazh. Three others were subsidiaries of Yuri V. Kovalchuk’s Bank Rossyia: Abros, Zest and Sobinbank. |
| “Today’s targeted sanctions, taken in close coordination with the E.U., will increase the impact we have already begun to see on Russia’s own economy as a result of Russia’s actions in Ukraine and from U.S. and international sanctions,” Jacob J. Lew, the Treasury secretary, said in a statement. “Russian economic growth forecasts have dropped sharply, capital flight has accelerated and higher borrowing costs reflect declining confidence in the market outlook.” | “Today’s targeted sanctions, taken in close coordination with the E.U., will increase the impact we have already begun to see on Russia’s own economy as a result of Russia’s actions in Ukraine and from U.S. and international sanctions,” Jacob J. Lew, the Treasury secretary, said in a statement. “Russian economic growth forecasts have dropped sharply, capital flight has accelerated and higher borrowing costs reflect declining confidence in the market outlook.” |
| American officials said that the European sanctions list would diverge from theirs, but that the fact that both sides were moving on the same day signaled important unity. | American officials said that the European sanctions list would diverge from theirs, but that the fact that both sides were moving on the same day signaled important unity. |
| “We don’t expect there to be an immediate change in Russian policy,” said a senior administration official, briefing reporters under ground rules that did not permit him to be identified. But he said the latest actions would signal that “much more severe economic pain” could still be imposed if Moscow did not back down. | “We don’t expect there to be an immediate change in Russian policy,” said a senior administration official, briefing reporters under ground rules that did not permit him to be identified. But he said the latest actions would signal that “much more severe economic pain” could still be imposed if Moscow did not back down. |
| Other individuals subject to the travel ban and asset freeze were Oleg Belavantsev, who was appointed by Mr. Putin last month as presidential envoy overseeing the annexed Crimean Peninsula; Sergei V. Chemezov, the director general of Rostec, the Russian state firm overseeing high-technology industries and a longtime member of Mr. Putin’s circle; and Evgeny Murov, the director of Russia’s Federal Protective Service and an army general. | Other individuals subject to the travel ban and asset freeze were Oleg Belavantsev, who was appointed by Mr. Putin last month as presidential envoy overseeing the annexed Crimean Peninsula; Sergei V. Chemezov, the director general of Rostec, the Russian state firm overseeing high-technology industries and a longtime member of Mr. Putin’s circle; and Evgeny Murov, the director of Russia’s Federal Protective Service and an army general. |
| Mr. Chemezov has had extensive dealings with Boeing through a joint venture part-owned by Rostec that manufactures about half of all titanium parts used in Boeing aircraft, and as a buyer of airplanes for a regional airline affiliated with Rostec | |
| That the sanctions covered no large publicly listed Russian companies came as a relief to traders in Moscow. Around midday, Russia’s benchmark Micex index recovered an initial loss after Mr. Obama said the list would not extend to the banking sector, and it closed with a modest gain of 1.5 percent. “It looked to be on the light side” of what the markets expected, said one banker in Moscow, speaking on the condition of anonymity. “This was more of a reminder that a new phase of sanctions is possible.” | |
| The actions came shortly after President Obama, traveling here in Asia, declared that Russia was continuing to bully and threaten Ukraine and would pay a price. The fact that the announcement was made on the last stop of his weeklong Asia trip underscored the sense of urgency about fears that Russia was destabilizing eastern Ukraine. | The actions came shortly after President Obama, traveling here in Asia, declared that Russia was continuing to bully and threaten Ukraine and would pay a price. The fact that the announcement was made on the last stop of his weeklong Asia trip underscored the sense of urgency about fears that Russia was destabilizing eastern Ukraine. |
| “These sanctions represent the next stage in a calibrated effort to change Russia’s behavior,” Mr. Obama said at a news conference with President Benigno S. Aquino III of the Philippines. | “These sanctions represent the next stage in a calibrated effort to change Russia’s behavior,” Mr. Obama said at a news conference with President Benigno S. Aquino III of the Philippines. |
| But Mr. Obama acknowledged, “We don’t yet know whether it is going to work,” and he left the door open to more sweeping sanctions against Russian industries like banking and defense. | But Mr. Obama acknowledged, “We don’t yet know whether it is going to work,” and he left the door open to more sweeping sanctions against Russian industries like banking and defense. |
| “The goal is not to go after Mr. Putin personally; the goal is to change his calculus, to encourage him to walk the walk, not just talk the talk” when it comes to diplomatic efforts to resolve the crisis, Mr. Obama said. | “The goal is not to go after Mr. Putin personally; the goal is to change his calculus, to encourage him to walk the walk, not just talk the talk” when it comes to diplomatic efforts to resolve the crisis, Mr. Obama said. |
| Mr. Obama said the sanctions would affect high-tech military exports to Russia, because they are not “appropriate to be transferred in the current environment.” | Mr. Obama said the sanctions would affect high-tech military exports to Russia, because they are not “appropriate to be transferred in the current environment.” |
| In remarks on Monday in Russia, Mr. Putin did not address the announcement from Mr. Obama directly. But he did say that the West wanted to try to target Russian military industries with sanctions primarily to undermine Moscow’s attempts to replace critical military components that have long been produced in Ukraine. | In remarks on Monday in Russia, Mr. Putin did not address the announcement from Mr. Obama directly. But he did say that the West wanted to try to target Russian military industries with sanctions primarily to undermine Moscow’s attempts to replace critical military components that have long been produced in Ukraine. |
| Russia would be able to replace all the imports within 18 months to two and a half years, Mr. Putin told lawmakers in the northwestern town of Petrozavodsk, in remarks broadcast live on television. Substitutions would “not require a review of the defense budget,” he said. | Russia would be able to replace all the imports within 18 months to two and a half years, Mr. Putin told lawmakers in the northwestern town of Petrozavodsk, in remarks broadcast live on television. Substitutions would “not require a review of the defense budget,” he said. |
| Imports from Ukraine have slowed, but not stopped, Mr. Putin said, adding that he hoped they would continue. If not, the specialists working in defense plants are welcome to immigrate, he said. | Imports from Ukraine have slowed, but not stopped, Mr. Putin said, adding that he hoped they would continue. If not, the specialists working in defense plants are welcome to immigrate, he said. |