Biden’s Russian sanctions are unlikely to be achieved
Despite bold discussions from senior government officials, there is little reason to believe that Russia’s sanctions package announced Thursday by President Byden will do anything to change the behavior and calculations of Russian President Vladimirputin. Targeting Russia’s Sovereign Debt — Represents serious punitive measures against Moscow, leaving plenty of room for the Russian President. Stay up to date with the latest market trends and economic insights at Axios Markets. Free White House spokesman Jen Psaki defended the action and told reporters, “We can’t predict what the impact will be, but we believe that any unacceptable behavior should have consequences. “. Secretary of State Rex Tillerson, who has known and dealt with Putin for years while running ExxonMobil, told his colleagues that sanctions did little to thwart Russian leaders. .. Since 2014, when Putin’s “little green man” first appeared in Ukraine, he has imposed some form of sanctions on Russia each year. Since then, Russia has continued to occupy Crimea and eastern Ukraine. It supported Syria’s brutal Assad regime. Hacked US and other Western elections. Crushed protests at home; yes, but: Thursday’s sanctions break new ground in the cyber realm. The US government has formally accused Russia’s Foreign Intelligence Service of hacking SolarWinds and has identified its collaborators in detail. As German security expert Thomas Lid points out in a bright Twitter thread. And the ban on US banks buying Russian government bonds directly could create a “wider cooling effect” that weakens the ruble and negatively impacts inflation and economic growth. Administrative officials told reporters. However, the ability of investors to continue to buy Russian bonds in the secondary market reduces the overall effect of the restrictions-reflecting Biden’s desire to send a clear message to Russians without going too far. I am. Stream 2 is a nearly complete Russian and German pipeline that bypasses Ukraine and delivers Russian gas directly to the European Union. On Thursday, Biden described Nord Stream 2 as a complex issue that remained a “problem” and was against the pipeline. In reality, no one expected him to sanction his ally, Germany. This is the type of action that can actually prevent the completion of the pipeline. What they say: “Ukrainians are not guaranteed by Washington that all possible steps will be taken to prevent the construction of the pipeline,” close to Ukrainian President Volodymyr Zelensky. Sources told Axios. Do not target oligarchs. Alexei Navalny, the imprisoned opposition leader, said targeting the oligarchy was likely to thwart Putin because of the enormous wealth they had on his behalf. Like this article? Get more out of Axios and subscribe to Axios Markets for free.