Obama Unveils New Russia Sanctions, Targeting US Exports, Credit

Denies New Cold War While Vowing to Cripple Russian Economy

In a brief public speech today, President Obama unveiled a new round of sanctions against Russia, this time banning US financial companies from offering credit to finance growth Russia’s energy sector and banning US exports of certain equipment to Russia.

Obama denied that the sanctions amounted to the start of a new Cold War, and insisted they were targeted entirely on showing displeasure for Russia”s support for rebels in eastern Ukraine.

At the same time, US officials have made clear that they intend to push new sanctions irrespective of what Russia does in Ukraine, and Obama’s comments focused on crippling the Russian economy as a whole, not just on ending Russia’s calls for a ceasefire in east Ukraine.

Though Obama touted the putative damage done to Russia’s economy by past sanctions, recent reports have suggested US exports to Russia have actually been going up in recent weeks, and are so trivially small at any rate as to be unlikely to have a serious impact on the nation’s economy.

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Author: Jason Ditz

Jason Ditz is news editor of Antiwar.com. View all posts by Jason Ditz

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Mojo

By crippling Russian economy? By not selling them the American product and credit? The Russian government have more of friends as China, South America and many Asian and African country whom would love to take over the US exports to Russia and they will sooner then Obama or theu governing Neo fascism think.

Barack Hussein Obama policies around the world will create a economic situation where more of Europeans and American will go hungry then last year, is not going to happen by tomorrow, but in time people will feel it.
Rich

The U.S. has a trade deficit. Obama doesn't seem to understand that. Countries with trade deficits don't run around calling the shots. These sanctions are more likely to cripple the U.S. economy instead of the Russian economy.
- Thomas L. Knapp
  
  If trade deficits weren't largely economically irrelevant (US dollars eventually clear in the US), you would have it exactly backward — the more stuff Country A buys from Country B, the more influence Country A is likely to wield over Country B.
  - Rich
    
    Well, I guess my point is with the weak U.S. economy, imposing trade sanctions on other countries ain't helpin'.
Michael Kenny

The EU sanctions are much more damaging than anything the US could do. Thus, merely looking at the US sanctions avoids seeing the damage that EU sanctions are doing to an already weak Russian economy. Moreover, such sanctions are very unpopular. Except for a few elderly dinosaurs like Putin himself, most Russians just want to be modern Europeans and they want access to West European goods. If Russia can't earn the euros to buy those goods, dissatisfaction will spread. Where I live, and where I was recently on holiday in Germany, you can't walk down the street without hearing Russian being spoken. They are voting with their feet, saying to Putin "we want our European birthright, not the US neocons' screwball "Eurasian" pipedreams".
dan

What's his problem? Why is America pursuing this needless confrontation with Russia?