Moscow set for sanctions war
‘‘We are sliding toward an economic war. We are reaching a point of no return in our relations, and I don’t see any base for improving them.’’ Vladimir Vasiliev, Institute for US and Canadian Studies in Moscow
United States President Donald Trump’s hopes for a thaw in relations between Moscow and Washington appeared to have been dashed yesterday as Russia signalled it was ready for a full-blown economic war over the US’s decision to impose sanctions in response to the Salisbury nerve-agent attack. The Kremlin was drawing up retaliatory sanctions yesterday, a day after the US state department announced new measures to punish Russia for the novichok attack against a former double agent and his daughter in March. Russia also said it would not comply with US demands to open up alleged chemical facilities for inspection; clearing the way for the automatic imposition of further, far more draconian sanctions in November. The rouble and the Moscow stock market plunged after Thursday’s announcement of the first tranche of sanctions, which forbid the sale of technology that is sensitive to national security from the US to Russia. A second tranche of sanctions could be far more consequential, potentially halting most trade between the countries, preventing Russian airlines from flying to the US, and banning loans from American banks and other international institutions in measures that threaten to sever diplomatic relations. The developments represent a dramatic downgrade in relations three weeks after Trump met President Vladimir Putin in Helsinki and declared that the days of bad blood between their countries were over. ‘‘We are sliding toward an economic war,’’ Vladimir Vasiliev, a senior fellow at the Institute for US and Canadian Studies in Moscow, told Russian state television. ‘‘We are reaching a point of no return in our relations, and I don’t see any base for improving them.’’ The US state department announced the first tranche of sanctions on Thursday after concluding that the Kremlin was behind the poisoning of the Skripals. The action was triggered by a 1991 law mandating sanctions on any country found to have used chemical or biological weapons. The process was set in motion when the US agreed with Britain’s assessment that the Kremlin had organised the attack on Sergei Skripal, a dual RussianBritish citizen and his Russian daughter, Yulia. Under the law, Moscow has 90 days to satisfy Washington that it has no chemical weapons programme, including granting access to international inspectors, to avoid harsher sanctions. Russia’s foreign ministry declared that it would not comply, accusing the US of ‘‘knowingly presenting demands that are unacceptable to us’’. Maria Zakharova, a ministry spokeswoman, said the Kremlin was beginning work on ‘‘retaliatory measures’’. Sergey Ryabukhin, a senior Russian senator, warned that Moscow could restrict exports of RD-180 rocket engines to the US. The engines are used to power Atlas V rockets that launch US military satellites. Dmitry Peskov, the Russian presidential spokesman, said: ‘‘Such moves are absolutely unfriendly and at odds with the constructive atmosphere present at the last meeting of presidents in Helsinki,’’ adding that they were ‘‘categorically unacceptable’’ and ‘‘contrary to international law.’’ Fyodor Lukyanov, chairman of the Council of Foreign and Defence Policy, an official Russian think tank, said the accusations had set in motion a ‘‘dangerous spiral’’ similar to that leading to the Iraq war in 2003. Russian MPs blamed a ‘‘Russophobic’’ American Congress and lamented Trump’s inability to reset relations with their nation despite his professed desire. Some blamed the febrile atmosphere before the midterm elections in November, suggesting that the Trump administration was seeking to undermine allegations of collusion with Russia by taking a stand on sanctions. Konstantin Kosachev, head of the Russian senate’s foreign relations committee, compared the new sanctions to ‘‘a lynching’’. He added: ‘‘The US is once again behaving like a police state, beating out evidence from suspects by threats and torture.’’ The imposition of sanctions highlights again Trump’s difficulties in changing tack with Russia while Congress and members of his administration remain suspicious of the old enemy’s motives. Last week, the heads of four US intelligence agencies said Russia was planning to interfere in the midterm elections, and that Kremlin meddling had put American democracy ‘‘in the crosshairs’’. A bipartisan group of senators announced plans for punitive measures against foreign election meddling and cybercrime – largely aimed at Russia. The bill they drew up calls on Trump to impose fresh sanctions on Russian political figures and oligarchs and also targets state enterprises in the oil and banking sectors. The full text was leaked to a Russian newspaper on Thursday, starting a steep fall in the rouble. The currency fell further still after the US sanctions related to the Skripal attack were later announced. In an attempt to stave off those measures, the White House began drafting an executive order imposing sanctions on foreigners who interfere with US elections. An executive order can be signed by the president without needing to go through Congress as a bill, where it would be open to amendment. A copy of the order that was leaked to The Washington Post revealed that it would give Trump discretion to punish those who carried out ‘‘internet-based disinformation efforts’’. He would also have the power to impose sanctions on ‘‘10 of the 30 largest business entities’’ in a country whose government has interfered in a US election.