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West readies package of sector sanctions on Russia

By
From page A10 | June 25, 2014 |

WASHINGTON — The United States and its European allies are finalizing a package of sanctions on Russia’s key economic sectors that could be levied as early as this week, though the penalties might be delayed because of positive signals from Russian President Vladimir Putin, administration officials and others close to the decision-making said Tuesday.

Penalizing large swaths of the Russian economy, including its lucrative energy industry, would ratchet up the West’s punishments against Moscow over its threatening moves in Ukraine. The U.S. and Europe have already sanctioned Russian individuals and entities, including some with close ties to Putin, but have so far stayed away from the broader penalties, in part because of concern from European countries that have close economic ties with Russia.

But with the crisis in Ukraine stretching on, a senior U.S. official said the U.S. and Europe are moving forward on “common sanctions options” that would affect several areas of the Russian economy. A Western diplomat said those options included Russia’s energy industry, as well as Moscow’s access to world financial markets.

The U.S. and Europe have been eyeing a European Council meeting in Brussels later this week as an opportunity to announce the coordinated sanctions. However, the enthusiasm for new sanctions, particularly among European leaders, appears to have waned in recent days as countries evaluate whether Putin plans to follow through on a series of promises that could ease the crisis, officials said.

 

The Associated Press

The Associated Press

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