Having warned several weeks ago it would impose sanctions on Russia for its alleged use of the Novichok chemical agent in the UK, on Friday morning the US followed through with the threat when the U.S. released a notice of sanctions, saying they will take effect when published in Federal Register on Aug. 27.
The sanctions will include foreign assistance, arms sales, denial of U.S. government credit, other financial assistance, and will remain in place for at least one year and until further notice.
Exceptions include on flight safety, wholly-owned U.S. subsidiaries, space flight – as Russia is a primary supplier of space engines for US rockets – commercial end-users, deemed exports and reexports.
Plans to impose the sanctions were announced by the Trump administration on Aug. 8 and since the move was fully priced in, despite a small dip in the ruble in kneejerk response, the USDRUB quickly dropped and was trading near session lows amid broad-based weakness in the US dollar.
The lack of a reaction shows that investors are less concerned with limitations that, however, fall short of blocking purchases of Russian sovereign debt.
Separately, speaking to reporters in Kiev, U.S. National Security Adviser John Bolton said the U.S. sanctions against Russia will remain in force “until there is a required change in Russian behavior” adding that the U.S. doesn’t accept Russian meddling in U.S. elections.
Bolton added he had told Ukrainian President Petro Poroshenko that Moscow should not meddle in Ukraine’s presidential vote next year.
On Aug 23, Bolton said he had discussed the recent indictment for 12 Russians with Nikolai Patrushev, secretary of Russia’s security council, and said that the indictments are “serious” and investigations continue.
via RSS https://ift.tt/2NcahGU Tyler Durden