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Saturday, December 20, 2014

Sanctions
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U.S. Tightens Crimea Embargo to Pressure Russia
By PETER BAKERDEC. 19, 2014
WASHINGTON — The United States on Friday imposed a tighter economic embargo on the Crimean peninsula, which Russia annexed this year, and put new sanctions on separatist leaders in eastern Ukraine as it joined Europe in trying to keep the pressure on Moscow.
President Obama signed an executive order barring new investment and trade with Crimea and freezing the property of people or businesses found to be operating in the region or helping its new leadership. The administration also targeted 24 others involved in the pro-Russian uprising in eastern Ukraine, barring their entry into the United States and freezing any assets here.
The order “is intended to provide clarity to United States corporations doing business in the region and reaffirm that the United States will not accept Russia’s occupation and attempted annexation of Crimea,” Mr. Obama said in a statement. “I again call on Russia to end its occupation and attempted annexation of Crimea, cease its support to separatists in eastern Ukraine, and fulfill its commitments under the Minsk agreements” calling for a cease-fire and political settlement.
The actions came a day after similar moves by the European Union, and they were meant to demonstrate enduring unity between the allies in the face of Russian efforts to drive a wedge between them. Russia is already reeling from a currency crisis fueled partly by previous sanctions and economic isolation stemming from its intervention in Ukraine, as well as the falling price of oil.
The new measures are relatively modest compared with some of the sanctions imposed earlier this year and may not do much to change the economic outlook in Moscow, but American officials said they would send a message to President Vladimir V. Putin of Russia that the West was not backing down.
“It basically says you can claim your war prize,” meaning Crimea, “but it’s not going to be worth much to you, and we’re not going to make it easy for you,” said a senior administration official, who asked not to be named discussing diplomatic strategy. Without outside investment, officials said, Moscow will have to invest more of its own money to keep the peninsula afloat.
Mr. Obama’s move came a day after he signed bipartisan legislation authorizing more punitive sanctions against Russia, as well as $350 million in military aid to Ukraine. But the actions on Friday were taken under existing authority and were not related to that legislation.
The White House said Mr. Obama did not plan to use the power of the new law at this point because he was reluctant to move more aggressively than European allies were willing to. Europe does far more business with Russia than the United States does and faces more economic consequences from sanctions.
Mr. Obama signed the legislation only after pressing Congress to make its provisions largely discretionary, but critics said he should carry them out to put more pressure on Moscow to reverse course.
“We will continue to review and calibrate our sanctions in close coordination with our international partners to respond to Russia’s actions,” he said.

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