US threatens broader sanctions against Russian industries over Ukraine action

US president Barack Obama yesterday announced additional sanctions against 20 high-level Russian government officials and allies of President Vladimir Putin as well as a bank to punish Moscow for annexing Crimea.

In a speech on the south lawn of the White House, Mr Obama said that he signed a new executive order that allows the US to escalate its own response to any further incursions by Russia into the other parts of Ukraine by imposing sanctions would affect "key sectors" of the Russian economy.

“This is not our preferred outcome. These sanctions would not only have a significant impact on the Russian economy but could also be disruptive to the global economy,” he said.

“However, Russia must know that further escalation will only isolate it further from the international community.”

The latest US sanctions against the individuals include those with “substantial resources and influence who provide material support to the Russian leaderships as well as a bank that provides material support to these individuals,” Mr Obama said.

The president warned of “more severe actions” if the Kremlin chose to escalate the crisis further with further Russian military incursions into southern and eastern Ukraine.

“The world is watching with grave concern,” he said, urging Russia again to consider a diplomatic solution and to engage in talks with Ukraine’s new pro-western government.

In retaliation to the US sanctions, the Russians responded shortly after Mr Obama's speech with sanctions of their own, imposing entry bans on nine senior White House officials and members of the US congress, including House Speaker John Boehner and Republican Senator John McCain.

A spokesman for Mr Boehner said that the Speaker was “proud to be included on a list of those willing to stand against Putin’s aggression”.

Spring break
"I guess this means my spring break in Siberia is off, my Gazprom stock is lost and my secret bank account in Moscow is frozen," Mr McCain joked in his response to the Russian censure.

Senior US administration officials said that the Russian industries that would be targeted in the event of an escalation of the crisis include the energy, metal and mining, and engineering sectors.

Among the 16 government officials targeted are Mr Putin's chief of staff Sergei Ivanov, a close friend of the Russian president, and the speaker of the Russian parliament Sergey Naryshkin.

Those sanctioned within the government's inner circle – described by a senior US administration official as "cronies" of the Putin regime – include financier Yuri Kovalchuk, dubbed Mr Putin's personal banker by the White House, and Gennady Timchenko, founder of the fourth largest crude oil trader in the world and a close ally of the Russian leader.

The head of the Russian Railways, Vladimir Yakunin, who is a long-time friend and adviser of Mr Putin, was also targeted.

There were also sanction applied to St Petersburg-based Bank Rossiya.

The bank, which is used by wealthy Russian oligarchs, is controlled by businessman Yuri Kovalchuk, who has also been individually sanctioned.