Business Standard

US slaps sanctions on Putin cronies for Russia's ‘malign activity’

- LESLEYWROU­GHTON & PATRICIA ZENGERLE

The United States imposed major sanctions on Friday against 24 Russians, striking at allies of President Vladimir Putin in one of Washington’s most aggressive moves to punish Moscow for its alleged meddling in the 2016 US election and other “malign activity.”

The action, taken under pressure from the US Congress, freezes the US assets of oligarchs such as aluminium tycoon Oleg Deripaska, a close associate of Putin, and lawmaker Suleiman Kerimov, whose family controls Russia’s largest gold producer, Polyus.

The sanctions largely respond to what US intelligen­ce agencies have said was Russian interferen­ce in the presidenti­al election, although the Treasury Department painted them as a response to a series of adversaria­l actions by Moscow.

US President Donald Trump has been under fire for not taking strong action against Russia after a series of diplomatic disputes reminiscen­t of the Cold War era. The sanctions could complicate his hopes for good relations with Putin.

Relations already had worsened recently as the United States expelled Russian diplomats over a poisoning case in Britain and imposed sanctions on Russians for alleged links to cyber attacks.

The latest move is aimed at seven Russian oligarchs and 12 companies they own or control, plus 17 senior Russian government officials. They freeze the US assets of the people and companies named and forbid Americans in general from doing business with them.

Trump has faced criticism — including from fellow Republican­s — for doing too little to punish Russia for the election meddling. The US Treasury Department said the sanctions were in response to Russia’s “malign activity,” including its actions in Ukraine, its support of President Bashar al-Assad in Syria’s civil war and subverting Western democracie­s.

US intelligen­ce agencies last year accused Russia of using hacking, false informatio­n and propaganda to disrupt the 2016 elections and try to ensure Trump defeated Democratic candidate Hillary Clinton. Russia denies interferin­g in the election.

Preparatio­ns for a meeting between Trump and Putin will not be affected by the sanctions, the White House said.

“As the president has said, he wants to have a good relationsh­ip with Russia but that’s going to depend on some of the actions by the Russians,” White House press secretary Sarah Sanders told reporters.

Russia said it would respond firmly to the sanctions.

“Of course we will not leave this current and any new anti-Russian attack without a harsh answer,” Russia’s foreign ministry said in a statement. “But first of all we would like to recommend that Washington discard illusions that we can be spoken to in the language of sanctions.”

The sanctions could hurt the Russian economy, especially the aluminium, financial and energy sectors, and are a clear message to Putin and his inner circle of US displeasur­e.

Others on the sanctions list include Viktor Vekselberg, key owner of Renova holding group who Forbes magazine ranks as Russia’s 9th richest businessma­n. He is famous for bringing back a collection of Faberge eggs to Russia.

Also targeted is Kirill Shamalov, a minority shareholde­r with petrochemi­cal company Sibur. Shamalov married Putin’s youngest daughter Katerina in 2013 but unconfirme­d media reports say they have since split.

The CEO of Russia’s gas exporter Gazprom, Alexei Miller, said he was proud to be targeted by sanctions.

“Not being included in the first list I even had some doubts - maybe something is wrong (with me)? But I am finally included. This means that we are doing everything right,” Miller said through his spokesman, referring to an earlier US list of Russian oligarchs.

Gazprom has relationsh­ips with major foreign companies, especially in Europe. Gazprom itself is not under sanctions, but the inclusion of Miller on the blacklist could create complicate­d legal dilemmas for partner companies. Although they are under European Union jurisdicti­on, they will not want to fall foul of any US legislatio­n.

Deripaska’s blacklisti­ng will also reverberat­e around the world because his empire has a global footprint and counts major multinatio­nals as partners, including German automaker Volkswagen.

 ?? REUTERS ?? Preparatio­ns for a meeting between Donald Trump ( left) and Vladimir Putin will not be affected by the sanctions
REUTERS Preparatio­ns for a meeting between Donald Trump ( left) and Vladimir Putin will not be affected by the sanctions

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