US imposes tough sanctions on Russia, expels diplomats

WASHINGTON • The Biden administration yesterday announced tough new sanctions on Russia in response to the Kremlin's interference in US elections and its sprawling hacking operation that breached vital government agencies and private companies.

The United States government said it sanctioned 32 entities and individuals for disinformation efforts and for carrying out the Russian government's interference in last year's presidential election.

It also joined with European partners to sanction eight people and entities associated with Russia's occupation in Crimea.

In an executive order, President Joe Biden directed the Treasury to prohibit US financial institutions from participating in the primary market for rouble-or non-rouble-denominated bonds issued after June 14 this year.

The order also designated six Russian companies for providing support to the cyber activities of the Russian intelligence service.

Widely anticipated, the sanctions come amid a large Russian military build-up on the borders of Ukraine and in Crimea, the peninsula that Moscow annexed in 2014.

They comprise what US officials described as "seen and unseen" steps in response to American technology firm SolarWinds' hacking, to the Central Intelligence Agency's assessment that Russia offered bounties to kill US troops in Afghanistan, and to Russia's longstanding effort to interfere in US elections on behalf of former president Donald Trump.

Russian bonds fell and the rouble dropped the most since December on news of the impending penalties, although both recovered some of their losses after the sanctions were announced.

National Security Adviser Jake Sullivan told CNN early yesterday: "What President Biden is going to announce today, we believe, are proportionate measures to defend American interests in response to harmful Russian actions, in-cluding cyber intrusions and election interference.

"His goal is to provide a significant and credible response but not to escalate the situation."

The US yesterday officially named the Russian Foreign Intelligence Service and several connected entities as being responsible for SolarWinds' breach, saying that US intelligence agencies have "high confidence" in the assessment of attribution of responsibility to Russia.

The US said it will expel 10 Russian diplomats, including members of the Russian intelligence service, from the country's mission in Washington as part of an effort to inflict a noticeable impact on the Russian government, its finances and President Vladimir Putin.

Previous sanctions against Russia have been more narrowly drawn and have largely affected individuals.

As such, the Kremlin has largely appeared to absorb or shrug off the penalties without changing its behaviour.

Russia's Foreign Affairs Ministry said it was "unavoidable" that Moscow would respond to the US sanctions, and that it had called in Washington's ambassador in Moscow for "tough talks".

Nato allies yesterday backed the US' decision to impose sanctions on Russia and expel its diplomats.

"Nato allies support and stand in solidarity with the United States following its April 15 announcement of actions to respond to Russia's destabilising activities," a statement said.

"Allies are taking actions individually and collectively to enhance the alliance's collective security."

Nato members cited a "sustained pattern" of Russian be-haviour, from aggression against Ukraine to interference in the US presidential election and cyber attacks.

NYTIMES, BLOOMBERG, REUTERS