With the White House calling Russian deployments in eastern Ukraine an invasion, it’s expected to follow up with tough sanctions. President Joe Biden has made clear the United States intends to deploy sweeping financial penalties, not American troops, to hit Russia over President Vladimir Putin’s moves against Ukraine. The Biden administration says its toughest sanctions package, already worked out in consultation with European allies, would be enough to hit Putin and Russia’s elites, cripple Russia’s ability to do business internationally, and likely bring on a recession there. Here’s a look at some of the tougher possible penalties that U.S. leaders have been holding in abeyance — while watching for new Russian steps against Ukraine, including any possible Russian moves against additional Ukraine territory. The U.S. has yet to fully disclose which of the options it will use. NORD STREAM 2: Germany announced Tuesday that it would suspend its certification of the newly built but never operated Russia-to-Germany Nord Stream 2 pipeline. A multibillion-dollar project of Russia’s Gazprom energy company and European companies, the pipeline would carry Russia’s natural gas to the lucrative markets of Europe. It’s been a top target of the Biden administration and Republican and Democratic lawmakers alike, who say the project was a strategic mistake from the start, increasing Putin’s political power over Europe by prolonging Europe’s dependence on Russia’s natural gas. Reluctant to split with ally Germany, Biden has warded off repeated attempts in Congress to impose financial sanctions on any company or person that does business that involves Nord Stream 2, effectively making it financially impossible for the pipeline to operate. It’s unclear if the U.S. might still impose its own sanctions on Nord Stream 2, to amplify the actions that Germany just took. Biden made clear in recent weeks that Nord Stream had no chance if Russia invaded Ukraine. ’Then there will be no longer a Nord Stream 2. We will bring an end to it,” Biden said. SANCTIONS ON INDIVIDUALS AND INDIVIDUAL BUSINESSES AND ENTITIES Overall, the U.S. and its allies aim to impose sanctions that compel Putin to change his ways, while minimizing the harshest impacts on ordinary Russians and any collateral economic damage on the U.S. and European allies. Sanctions are imposed on individuals listed on a Specially Designated Nationals and Blocked Persons List through the Treasury Department’s Office of Foreign Assets Control. Also known as SDNs, the list includes individuals and companies owned or controlled by, or acting on behalf of a targeted country. Traditionally, their assets will be blocked and the U.S. is almost completely prohibited from dealing with SDNs. Individuals, groups, companies and even aircraft can be given this designation. Additionally, sectoral sanctions are an option to damage the economy. Sectoral sanctions apply to specific Russian firms — such as energy, finance, technology and defense — to be included on the Sectoral Sanctions Identifications List. Sectoral sanctions will limit some trade but will permit some transactions. Specifically, new sanctions would likely hit Putin, his family and his circle — Republican lawmakers are itching to sanction the former Olympic gymnast that news reports have identified as Putin’s romantic partner — along with Russia’s privileged oligarchs. Other targets would likely include Russia’s banks and financial system at large and Russia’s military leaders, military and their funding sources, among others. For […]

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