The Pak Banker

Did Biden blink on Russia?

- Paul Roderick Gregory

The U.S. media initially burst out in applause at the "sweeping" and "tough" sanctions the Biden administra­tion imposed on Russia on April 15 under the title of "Imposing Costs for Harmful Foreign Activities by the Russian Government."

Targeted are activities that "undermine security in countries and regions important to United States national security; and violate well-establishe­d principles of internatio­nal law, including respect for the territoria­l integrity of states" (meaning Ukraine).

The Biden justificat­ions for the sanctions are the presumed Russian interferen­ce in the 2020 elections, Russia's hacking and cyberwarfa­re, the disinforma­tion activities of the Russian military, and other hostile acts not enumerated.

One additional sanction justificat­ion has been dropped, embarrassi­ngly, at the last minute. The U.S. intelligen­ce community can no longer assert with sufficient certainty that Russian forces offered rewards to Taliban fighters for killing U.S. soldiers. The sanctions document declares: "Given the sensitivit­y of this matter, which involves the safety and wellbeing of our forces, it is being handled through diplomatic, military and intelligen­ce channels." In other words, "Never mind" although these supposed Russian rewards played a substantia­l role in the 2020 election campaign.

The Biden sanctions also prohibit U.S. financial markets from dealing with primary issues of Russian sovereign debt. This action will raise the cost of public finance to the Russian state.

Ten Russian diplomats are expelled, as is usually the case when such sanctions are imposed. An additional 32 Russian enterprise­s and individual­s also fall under the new sanctions.

Notably missing, however, are sanctions to impede the completion of the Nord Stream 2 undersea gas pipeline from Northern Russia to Germany. These long threatened Nord Stream 2 sanctions are apparently still "under discussion." I can imagine the Kremlin's relief when it realized Nord Stream 2 had escaped sanctions and that pipe laying could continue.

Also missing are sanctions on Putin's inner circle, for which the supporters of imprisoned Russian dissident Aleksei Navalny lobbied.

They argued that Putin will take note only of sanctions on Kremlin insiders and not of the state and military officials singled out in the sanctions.

Biden's invitation to Putin to meet one on one in a summit in a neutral location to iron out outstandin­g issues was advanced before the release of the sanctions. Russian pro-democracy observers characteri­ze the invitation as a propaganda bonanza for Putin and a colossal Biden blunder. Putin's media are characteri­zing Biden as a supine supplicant to Putin. When one such analyst was told of Biden's invitation, he first thought it must be fake, especially after Biden recently called Putin a "killer." He thought that no one could make such an amateur mistake.

Putin added insult to injury by conditioni­ng his acceptance of the invitation on U.S. behavior namely, sanctions. Predictabl­y, shortly after the announceme­nt of sanctions, the Russian foreign office declined the invitation, stating (insultingl­y) that logistics do not allow for such a meeting on such short notice.

The expulsion of Russian diplomats is a routine response. The sanctions on the 32 enterprise­s and individual­s simply brings the U.S. up to the level of modest European Union sanctions. The order for U.S. financial markets not to trade in Russian sovereign debt will impose some damage in the form of lower exchange rates, but the Russian economy has long been a disaster, and these measures signal only a little more discomfort.

I suspect that Putin's reaction to the Biden sanctions is that the new administra­tion is "all talk, no action" and that it is prone to amateurish mistakes. I doubt that these new sanctions will persuade Putin "to immediatel­y cease his military buildup and inflammato­ry rhetoric" in Ukraine.

If anything, the weak and confused Biden sanctions will embolden Putin, who immediatel­y closed the Kerch Strait to American naval vessels transiting from the Black Sea to the Azov Sea.

 ??  ?? "I suspect that Putin's reaction to the Biden sanctions is that the new administra­tion is "all talk, no action" and that it is prone to amateurish mistakes. I doubt that these new sanctions will persuade Putin "to immediatel­y cease his military buildup and inflammato­ry rhetoric" in Ukraine."
"I suspect that Putin's reaction to the Biden sanctions is that the new administra­tion is "all talk, no action" and that it is prone to amateurish mistakes. I doubt that these new sanctions will persuade Putin "to immediatel­y cease his military buildup and inflammato­ry rhetoric" in Ukraine."

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