Russia slams as illegal new US sanctions

RUSSIA condemned a new round of US sanctions as illegal yesterday and said it has begun working on retaliatory measures after news of the curbs pushed the rouble to two-year lows over fears Moscow was locked in a spiral of never-ending sanctions.

The US State Department said on Wednesday that it would impose fresh sanctions by the month’s end after determining that Moscow had used a nerve agent against a former Russian double agent, Sergei Skripal, and his daughter, Yulia, in Britain, something Moscow denies.

The Kremlin said the sanctions were illegal and unfriendly and that the US move was at odds with the “constructive atmosphere” of Donald Trump and Vladimir Putin’s summit in Helsinki.

Moscow would start to work on retaliatory measures “in the same spirit” as any US restrictions, the Foreign Ministry said.

The new sanctions come in two tranches. The first, which targets US exports of sensitive national security-related goods, comes with deep exemptions and many of the items it covers have already been banned by previous restrictions. The second tranche, which can be selectively activated after 90 days if Moscow fails to provide “reliable assurances” it will no longer use chemical weapons and blocks on-site inspections, is potentially more serious.

According to the law, it could include downgrading diplomatic relations, suspending national flag carrier Aeroflot’s ability to fly to the United States and cutting off nearly all exports and imports.

Foreign Ministry spokeswoman Maria Zakharova said Moscow has not yet received any official US request to open up sites once linked to chemical weapons for inspection.

The State Department’s announcement fueled already worsening investor sentiment about the possible impact of more sanctions on Russian assets and the rouble at one point slid by over 1 percent against the US dollar, hitting a two-year low, before recouping some of its losses.