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New Russia Sanctions Bill Will Be Signed by Obama, White House Says U.S. Signals Support for New Sanctions to Pressure Reeling Russian Economy
(about 7 hours later)
WASHINGTON — President Obama has decided to sign legislation imposing further sanctions on Russia and authorizing additional aid to Ukraine, despite concerns that it will complicate his efforts to maintain a unified front with European allies, the White House said on Tuesday. WASHINGTON — With Russia already staggering under the weight of one of its worst financial crises in years, the United States signaled on Tuesday that it would further increase the economic pressure with a new raft of sanctions targeting the Russian defense, energy and banking industries.
The legislation calls for a raft of new measures penalizing Russia’s military and energy sectors and authorizes $350 million in military assistance to Ukraine, including antitank weapons, tactical surveillance drones and counter-artillery radar. The bill was approved unanimously by Congress, but Mr. Obama hedged for days on whether he would sign it. President Obama said through a spokesman that he would sign newly passed legislation expanding measures intended to cordon off large Russian state firms from Western financing and technology while also providing $350 million in arms and military equipment to Ukraine as it battles a pro-Russian insurgency in its eastern regions.
Josh Earnest, the White House press secretary, announced the decision to approve the bill even as he described the president’s qualms over it. Mr. Earnest said it sent a “confusing message” internationally, including language “that does not reflect the consultations” with European powers. But in the end, he added, the president opted to allow the bill to become law because it does contain some flexibility that will give him room to maneuver. The legislation had concerned the president, who has tried not to get too far out in front of European allies on sanctions and resisted sending lethal aide to Ukraine. But Congress passed the bipartisan measure without opposition, making a veto politically untenable, and administration officials said they were satisfied that enough discretion was incorporated into the bill to give the president room to maneuver.
The new sanctions come even as Russia’s economy is reeling from the collapse of the ruble, the increasing flight of capital investment and the specter of recession. Previous rounds of sanctions imposed by Mr. Obama and the European Union in response to Russia’s military intervention in Ukraine have contributed to a broader economic and political instability that has been exacerbated in recent days by the plunge in the price of oil, on which Russia is deeply dependent. “The president does intend to sign the piece of legislation that was passed by Congress,” said Josh Earnest, the White House press secretary. “But we do have some concerns about that legislation because while it preserves flexibility, it does send a confusing message to our allies because it includes some sanctions language that does not reflect the consultations that are ongoing.”
Mr. Earnest said the turmoil was owing in significant part to President Vladimir V. Putin’s own actions. “It’s a sign of the failure of Vladimir Putin’s strategy to try to buck up his country,” Mr. Earnest said. “Right now, he and his country are isolated from the broader international community.” The new sanctions come as Russia’s economy is reeling from the collapse of the ruble, the increasing flight of capital investment and the specter of recession. Past rounds of sanctions imposed by Mr. Obama and the European Union in response to Russia’s military intervention in Ukraine have contributed to a broader economic and political instability that has been exacerbated recently by the plunge in the price of oil, on which Russia is deeply dependent.
Russian officials have lashed out in recent days at the prospect of new sanctions. “Russia will not only survive but will come out much stronger,” Sergey V. Lavrov, the foreign minister, told France 24. “We have been in much worse situations in our history, and every time we have got out of our fix much stronger.” Mr. Earnest said the turmoil was the result of President Vladimir V. Putin’s own actions. “It’s a sign of the failure of Vladimir Putin’s strategy to try to buck up his country,” Mr. Earnest said. “Right now, he and his country are isolated from the broader international community.”
He said there were “very serious reasons to believe” that the United States was pursuing a regime change strategy to topple Mr. Putin’s government, and he denigrated American lawmakers. “If you look at U.S. Congress, 80 percent of them have never left the U.S.A., so I’m not surprised about Russophobia in Congress,” Mr. Lavrov said. Russian officials have lashed out in recent days at the prospect of new sanctions. “Russia will not only survive but will come out much stronger,” Sergey V. Lavrov, the foreign minister, told France 24, the television network. “We have been in much worse situations in our history, and every time we have got out of our fix much stronger.”
Mr. Obama has already authorized multiple rounds of sanctions that have largely cut off major Russian banks from American credit markets, blocked the transfer of technology for long-term energy exploration and frozen assets and barred travel to the United States for a number of Mr. Putin’s allies. Mr. Obama has made it a top priority to coordinate those measures with European allies, which have been more reluctant to escalate the confrontation with Russia because of closer economic ties. He said there were “very serious reasons to believe” that the United States was pursuing a strategy of regime change, designed to topple Mr. Putin’s government, and he denigrated American lawmakers. “If you look at U.S. Congress, 80 percent of them have never left the U.S.A., so I’m not surprised about Russophobia in Congress,” Mr. Lavrov said.
The White House has been concerned that the new legislation would go beyond what the Europeans are willing to do and would contradict his own policy preferences for how to handle the showdown with Moscow. Mr. Obama has opposed sending weaponry to Ukraine on the grounds that it would only exacerbate the conflict against pro-Russian forces in its eastern regions. Even without Congress, Mr. Obama has authorized several rounds of sanctions that have largely cut off major Russian banks from American credit markets, blocked the transfer of technology for long-term energy exploration, and froze the assets of a number of Mr. Putin’s allies and barred them from traveling to the United States. Mr. Obama has been careful to coordinate the measures with Europe, which has been reluctant to escalate the confrontation with Russia because of closer economic ties.
The legislation authorizes the provision of lethal arms but would not require it. Likewise, it requires the president to impose at least three sanctions from a menu of nine options on Rosoboronexport, the main Russian state arms exporter, and other military companies blamed for fostering instability in Ukraine, as well as in Moldova, Georgia and Syria. But it includes a provision that allows the president to waive the requirement if he concludes that doing so would be in the nation’s security interest. The administration reached out to European officials in recent days to assure them that Mr. Obama would implement the new legislation as part of their joint efforts to keep Mr. Putin from driving a wedge among the Western nations. European officials are talking about imposing new sanctions in the coming days specifically related to Russia’s annexation of Crimea, but they almost certainly would not go as far as the new American legislation contemplates.
The legislation also authorizes, without requiring, the president to impose sanctions on international companies that invest in certain types of unconventional Russian crude oil energy projects and to further restrict the export of equipment for use in Russia’s energy sector. And it authorizes the president to bar investment or credit to Gazprom, the Russian state energy giant. Some analysts said Mr. Obama had little choice but to sign the legislation since Russia has continued to violate the terms of a cease-fire negotiated months ago in the Belarusan capital of Minsk.
The measure went beyond penalties to authorize $10 million for each of the next three fiscal years to counter Russian propaganda in the former Soviet Union and prioritize Russian-language broadcasting in Ukraine, Moldova and Georgia. And it authorized $20 million in each of the next three years to promote democracy, independent media, uncensored Internet access and anti-corruption efforts in Russia. “Given Russian military resupply of the separatists in Ukraine during the last month, the U.S. had to raise the economic costs to Putin for his outright aggression,” said R. Nicholas Burns, a former diplomat and undersecretary of state under President George W. Bush. “Combined with the collapse of the ruble, sanctions will hit Putin’s government where it is most vulnerable — its very shaky economy.”
The bill was initially sponsored by Senators Robert Menendez, Democrat of New Jersey, who is chairman of the Foreign Relations Committee, and Bob Corker, Republican of Tennessee, who is the ranking Republican on the committee. It passed both houses without a no vote, clearing its last hurdle on Saturday. But it is not clear how much of the authority granted under the legislation Mr. Obama will invoke. The bill requires the president to impose at least three sanctions from a menu of nine options on Rosoboronexport, the main Russian state arms exporter, and other military companies accused of fostering instability in Ukraine, as well as in Moldova, Georgia and Syria. But it includes a provision allowing him to waive the requirement if he concludes that doing so would be in the nation’s security interest.
The House speaker John A. Boehner, Republican of Ohio, pressed Mr. Obama to approve the measure. “On behalf of the people’s House, I urge President Obama to sign this bipartisan legislation,” he said in a statement before the White House announcement. The legislation also authorizes the president — but does not require him — to impose sanctions on international companies that invest in certain types of unconventional Russian crude-oil energy projects and to further restrict the export of equipment for use in Russia’s energy sector. And it authorizes the president to bar investment or credit to Gazprom, the Russian state energy giant.
Mr. Obama decided to do so after aides studying the measure concluded that it contained enough room for him to maneuver. In addition, the legislation authorizes the provision of lethal arms to Ukraine’s Kiev government, including antitank weapons, tactical surveillance drones and counter-artillery radar. Mr. Obama has resisted sending weaponry there on the theory that it would only escalate the fighting in eastern Ukraine, so it is not clear whether he will follow through on the authorization.
“The president does intend to sign the piece of legislation that was passed by Congress,” Mr. Earnest said. “But we do have some concerns about that legislation, because while it preserves flexibility, it does send a confusing message to our allies because it includes some sanctions language that does not reflect the consultations that are ongoing.” The measure went beyond penalties to authorize $10 million in each of the next three fiscal years to counter Russian propaganda in the former Soviet Union and prioritize Russian-language broadcasting in Ukraine, Moldova and Georgia. And it authorized $20 million in each of the next three years to promote democracy, independent news media, uncensored Internet access and anticorruption efforts in Russia.
But under pressure from the Obama administration, lawmakers removed elements that would have tied the president’s hands, including a provision that would have barred lifting sanctions until Russia was not only out of Ukraine but out of Moldova and Georgia, where conflicts have lingered for years and will not be likely to be resolved soon.
“President Putin bears responsibility for any outcomes that flow from his actions and breach of the international order,” said Senator Robert Menendez, Democrat of New Jersey, the chairman of the Foreign Relations Committee, who pushed for the sanctions along with the panel’s senior Republican, Senator Bob Corker of Tennessee. “The United States Congress stands with Ukraine in the face of Russian aggression,” Mr. Menendez said.