US sanctions Russia over nerve agent attack

As reported by Bloomberg, the US government has imposed trade sanctions on Russia in response to the chemical nerve agent attack that took place in the UK in March targeting former Russian double agent Sergei Skripal and his daughter.

Key quotes

"The sanctions are required under the 1991 Chemical and Biological Weapons Control and Warfare Elimination Act, which mandates punishment of countries that use chemical weapons in violation of international law. State Department officials said they expect them to take effect Aug. 22.

The sanctions, welcomed by the U.K., added to pressure on the ruble that began earlier in the day, when Russian media published the full text of a separate bill proposed by U.S. lawmakers that seeks “crushing sanctions” for election interference. The currency sank to its lowest level since November 2016.

The sanctions taking effect this month will limit exports to Russia of U.S. goods and technology considered sensitive on national security grounds, according to a State Department official who briefed reporters on condition of anonymity. The official said the action could block hundreds of millions of dollars in exports. Waivers will be allowed for space-flight activities and U.S. foreign assistance.

The additional sanctions also could be averted if President Donald Trump declared that waiving them would be in the U.S. national interest, a politically risky move in light of criticism that he’s been too soft on Russia on issues including interference in the 2016 presidential campaign.

The added sanctions could include a downgrading in diplomatic relations, blanket bans on the import of Russian oil and exports of “all other goods and technology” aside from agricultural products, as well as limits on loans from U.S. banks. The U.S. also would have to suspend aviation agreements and oppose any multilateral development bank assistance.

“The question is how severe these sanctions will be -- or at least the follow-up sanctions,” said Tim Ash, a senior emerging-market strategist at Bluebay Asset Management LLC in London. “I think there is little chance that Moscow will comply.” "

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