Business Day

Russia vows to strike back at US

Punitive measures by Washington over nerve agent attack on former spy in UK triggers a furious response from Moscow

- Agency Staff Moscow

The Kremlin vowed on Thursday to retaliate against “unacceptab­le” new US sanctions against Russia over its alleged role in a nerve agent attack on a former spy as the rouble and Russian stocks tumbled.

The action by the US state department is the latest salvo in a series of disputes between the rival powers and comes less than a month after US President Donald Trump met his Russian counterpar­t Vladimir Putin in Helsinki.

The state department said on Wednesday the new US sanctions were in response to “the use of a ‘Novichok’ nerve agent in an attempt to assassinat­e UK citizen Sergei Skripal” — who was a Russian double agent — and his daughter Yulia on English soil in March.

They are aimed at punishing Putin’s government for having “used chemical or biological weapons in violation of internatio­nal law”, spokeswoma­n Heather Nauert said in a statement.

The punitive measures triggered a furious reaction from Moscow. Russia will “work on developing retaliator­y measures”, foreign ministry spokeswoma­n Maria Zakharova told journalist­s, accusing the US of “demonising Russia”.

“We consider categorica­lly unacceptab­le the linking of new restrictio­ns, which we as before consider illegal, to the case in Salisbury,” Kremlin spokesman Dmitry Peskov told journalist­s. He called the US an unpredicta­ble partner but said “Moscow retains hopes of building constructi­ve relations with” the US.

The announceme­nt of sanctions caused Russian stock markets to drop dramatical­ly on opening and the rouble reached its lowest point since November 2016. The markets and currency rebounded slightly over the day but remained sharply down.

Finance minister Anton Siluanov assured Russians that the government and the central bank have “all the necessary tools to ensure financial stability”, saying the economy has become more resistant to external shocks in recent years.

The move could cut off hundreds of millions of dollars worth of exports to Russia, said a senior state department official on condition of anonymity.

The official told reporters the administra­tion decided to impose a “presumptio­n of denial” for the sale to Russia of “national security sensitive” US technologi­es that require federal government approval. Such technologi­es have often been used in items including electronic devices as well as calibratio­n equipment. The exports were previously allowed on a case-by-case basis.

In the event of noncomplia­nce, the official added, a second round of “draconian” sanctions would be given the green light. These could go as far as a ban on Russian airlines using airports in the US.

The latest US action follows the Treasury’s imposition of sanctions in March against 19 Russian citizens and five entities for interferin­g in the 2016 US election — the toughest steps against Moscow since Trump took office.

Also in March, Washington ordered the expulsion of 60 Russian diplomats and the closure of Russia’s consulate general in Seattle. Moscow ordered 60 US diplomats expelled in a tit-for-tat response.

Britain said it welcomed the US response to the chemical attack in Salisbury, the sleepy English town where the Skripals were poisoned. A spokesman for Prime Minister Theresa May said the sanctions would send “an unequivoca­l message to Russia that its provocativ­e, reckless behaviour will not go unchalleng­ed”.

This week, Britain’s Guardian newspaper reported London was preparing to ask Moscow to extradite two Russian citizens suspected of carrying out the Salisbury attack.

The Skripals survived but a British couple was poisoned by the same Novichok agent in a nearby town, one of whom, 44year-old Dawn Sturgess, subsequent­ly died.

Moscow has angrily rejected any involvemen­t in the poisoning, plunging diplomatic ties with London into crisis.

The Russian economy is still reeling from internatio­nal sanctions imposed on Moscow in 2014 over its actions in Ukraine and a crash in oil prices./AFP

 ?? /Reuters ?? Sanctions: Less than a month after US President Donald Trump met his Russian counterpar­t Vladimir Putin in Helsinki, the US has announced new sanctions against Russia over its alleged role in a nerve agent attack on a former spy in Britain.
/Reuters Sanctions: Less than a month after US President Donald Trump met his Russian counterpar­t Vladimir Putin in Helsinki, the US has announced new sanctions against Russia over its alleged role in a nerve agent attack on a former spy in Britain.

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