US takes action over Russian hack
Administration Lays Solarwinds breach at feet of intelligence agency
WASHINGTON – The Biden administration on Thursday announced the U.S. is expelling 10 Russian diplomats and imposing sanctions against dozens of companies and people, holding the Kremlin accountable for interference in last year’s presidential election and the cyber hacking of federal agencies.
The sweeping measures are meant to punish Russia for actions that U.S. officials say cut to the core of American democracy and to deter future acts by imposing economic costs on Moscow, including by targeting its ability to borrow money.
Foreshadowed for weeks by administration officials, the actions are certain to exacerbate tensions with Moscow, which promised retaliation.
Sanctions against six Russian
companies that support the country’s cyber efforts represent the first retaliatory measures against the Kremlin for the hack familiarly known as the Solarwinds breach. The U.S. on Thursday also explicitly linked the hack to a Russian intelligence agency called the SVR. Though such intelligence-gathering operations are not uncommon, officials said they were determined to act because of the operation’s broad scope and the high cost of the intrusion on private companies.
The U.S. also announced sanctions
on 32 individuals and entities accused of attempting to interfere in last year’s presidential election, including by spreading disinformation. U.S. intelligence officials alleged in a declassified report last month that Russian President Vladimir Putin authorized influence operations to help Donald Trump in his unsuccessful bid for reelection as president, though there’s no evidence Russia or anyone else changed votes or manipulated the outcome.
The actions signal a harder line against Putin, whom Trump was reluctant to criticize even as his administration pursued sanctions against Moscow. They are the administration’s second major foreign policy move in two days, following the announcement of troop withdrawals from Afghanistan. Until now, President Joe Biden has focused on the coronavirus pandemic and economy in his first months in office.
The 10 diplomats being expelled include representatives of Russian intelligence services, the Biden administration said. They were selected on the basis “that they were acting in a manner inconsistent with their status in the United States,” a senior official said.
Other measures are expected as well, though the administration is not likely to announce them. Officials have been advising that their response to Russia would be in ways both seen and unseen.
“These actions are intended to hold Russia to account for its reckless actions. We will act firmly in response to Russian actions that cause harm to us or our allies and partners,” Secretary of State Antony Blinken said in a statement.
But, he added, “Where possible, the United States will also seek opportunities for cooperation with Russia, with the goal of building a more stable and predictable relationship consistent with U.S. interests.”
Some experts suggest this latest round, even while not guaranteed to curb cyberattacks, might have more resonance because of its financial impact: The order makes it more difficult for Russia to borrow money by barring U.S. banks from buying Russian bonds directly from the Russian Central Bank, Russian National Wealth Fund and Finance Ministry. It could complicate Russian efforts to raise capital and give companies pause about doing business in Russia.
The impact of the sanctions and the U.S. willingness to impose costs will be weighed by Putin as he evaluates his next steps, though he is unlikely to make “a 180” pivot in his behavior, said Daniel Fried, a former assistant secretary of state for European and Eurasian Affairs.
“The issue is, how can we push back against Putin’s aggression, while at the same time keeping open channels of communication and continuing to cooperate with Russia in areas of mutual interest,” Fried said. “And it seems to me the Biden administration has done a pretty good job framing up the relationship in exactly this way.”
The White House did not impose sanctions related to separate reports that Russia encouraged the Taliban to attack U.S. and allied troops in Afghanistan, saying instead that Biden was using diplomatic, military and intelligence channels to respond.
The White House also said Biden was using diplomatic, military and intelligence channels to respond to reports that Russia encouraged the Taliban to attack U.S. and allied troops in Afghanistan, based on the “best assessments” of the intelligence community. Administration officials said Thursday they had low to moderate confidence in that intelligence.