Latest sanctions might drown U.S.-Russia relations

WASHINGTON — Russia typically brushes off new U.S. sanctions. Not this time.

The Trump administration announcement of export restrictions in response to accusations Moscow used a nerve agent to poison a former Russian spy in Britain sent the ruble tumbling to a two-year low and drew a warning from its prime minister. While the initial sanctions might have a limited impact, a second batch expected within months could hit the Russian economy much harder.

If sanctions are expanded even further to target Russia’s top state-controlled banks, freezing their dollar transactions — as proposed under legislation introduced in the Senate this month — it would amount to a “declaration of economic war,” Russian Prime Minister Dmitry Medvedev said Friday.

On President Donald Trump’s watch, the U.S. has imposed a slew of sanctions on Russia for human rights abuses, meddling in the U.S. election and Russian military aggression in Ukraine and Syria.

In 2014, the U.S. and European Union introduced sanctions that restricted Russia’s access to global financial markets and to equipment for new energy projects. But the sanctions announced by the Trump administration this past week could be even worse.

The restrictions were triggered under U.S. law on chemical weapons after a formal U.S. determination that Russia used the Novichok nerve agent to poison former Russian spy Sergei Skripal and his daughter in the English city of Salisbury in March.

The first tranche, due to take effect Aug. 22, will deny export licenses to Russia for the purchase of many items with national security implications. The State Department said it could affect hundreds of millions of dollars in trade.

Russia then has 90 days to “provide assurances” that it will not use chemical weapons in the future and allow inspections. If Russia does not comply, Trump will be obligated to impose a second set of sanctions.