19 April 2021

New Sanctions Reveal the Dangerous Low of U.S.-Russian Relations

Washington and Moscow continue to engage in a risky tit-for-tat with no offramp from potential escalation in sight.
The Kremlin is threatening the Biden administration with severe repercussions over a new U.S. sanctions package, bringing the troubled U.S.-Russian relationship to an unprecedented low.

The Biden administration imposed a robust sanctions package this week targeting the Russian economy. The measures included sanctions on all debt Russia issues after June 14, preventing U.S. financial institutions from buying government bonds from the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation. The directive “provides authority for the U.S. government to expand sovereign debt sanctions on Russia as appropriate,” laying the groundwork for further sovereign debt sanctions against Russia in the future. The package also contained sanctions against six Russian companies thought to be associated with Russian cyberhacking operations. Finally, ten officials at the Russian embassy in the United States, all identified as intelligence officers, will be expelled.

President Biden, who held a phone call with Russia’s President Vladimir Putin earlier this week, offered brief clarifying remarks on Thursday. “We can not allow a foreign power to interfere in our democratic process with impunity,” he said. “And I told them [the Kremlin] if it turned out as I thought that there was engagement in our elections that I’d respond. Later during the transition as we learn more about the SolarWinds cyber intrusion, I made clear that I respond once we determined who had in fact conducted a hack on the scope and scale that occurred.”

“When we spoke again this week, I told them that we would shortly be responding in a measured and a proportionate way because we concluded that they had interfered in the election and SolarWinds…,” Biden said. “Today I’ve approved several steps, including expulsion of several Russian officials as a consequence of their actions. I’ve also signed an executive order authorizing new measures, including sanctions to address specific harmful actions that Russia has taken against U.S. interest.”

Nevertheless, Biden reaffirmed that he hopes “Russia and the United States work together” to address “critical global challenges” including Iran, North Korea, the coronavirus pandemic, and climate change.

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