US
President Donald Trump has signed a significant piece of legislation to punish
Moscow for alleged interference in last year's election.
It limits the president's ability to dismiss sanctions
against Russia and has caused the Kremlin to retaliate.
Why
are there sanctions against Russia?
After Russia annexed Crimea and backed separatists in
eastern Ukraine, in 2014, the Obama administration in tandem with the European
Union introduced an array of economic sanctions on Russian individuals and
businesses.
Many of the individuals targeted were linked to Russia's
actions in Ukraine or were part of President Vladimir Putin's elite entourage.
Assets were frozen and restrictions imposed on Russia's
oil industry, as well as its state finance, technology and arms sectors.
In December 2016, Barack Obama expelled 35 Russian
diplomats and closed two Russian compounds in response to what the US
intelligence community concluded was a Russian government-backed cyber-attack
directed to influence the outcome of the 2016 presidential election. Moscow
denies the allegation.
What's
in the new legislation?
Members of the US Congress wanted to turn existing
sanctions, and some new ones, into law. Both houses have Republican majorities,
the same party as the president.
The bill tightens existing sanctions around the ongoing
situation in Ukraine and imposes new measures including some in response to
alleged hacking during the 2016 election and others that target key Russian
industries such as the railways, shipping, metals and mining. It would also
bring in restrictions on companies doing business with the Russian oil
industry.
Why
does it matter that the sanctions became law?
It means getting rid of sanctions becomes much harder,
and the power to reverse the sanctions effectively moves from the hands of the
president to Congress. Previously, the sanctions were introduced as executive
orders, which any president has the power to remove instantly.
Under the new law, Congress must approve any request
from the president to ease the financial penalties detailed in the bill. In
order to waive individual sanctions, a president would need to submit a report
to Congress outlining why it is in the national interest to take that action.
How
has Russia responded?
The Russian government retaliated to the sanctions by
telling Washington to reduce the number of its staff at the US embassy in
Russia and seizing properties used by diplomatic officials. The US government
will have to cut 755 staff to meet the capped figure of 455.
Sarah Huckabee Sanders, the White House press secretary,
said the White House would support tough sanctions on Russia until the
situation in Ukraine was "fully resolved". Without a clear end in
sight, that could mean a long time.
In a Facebook post, the Russian Prime Minister, Dmitry
Medvedev, said the law ended any hopes of improving relations between Moscow
and Washington.
Why
are some European countries unhappy with the planned changes?
The law signals a departure from a joint EU-US approach
to Russian sanctions. And some European countries have economic concerns
because the new law could penalise European companies that invest in big
Russian infrastructure projects such as the new Nord Stream II pipeline to
transport gas between Russia and Germany.
The German Foreign Minister, Sigmar Gabriel, and
Austrian Chancellor Christian Kern said this part of the new sanctions
programme would add a new negative dimension to US-European relations and
Europe's energy supplies were "a matter for Europe, not for the United
States".
But Germany is said to be pushing for EU sanctions
against Russia to be stepped up, according to diplomatic sources quoted in
Brussels.
The government in Berlin is said to want four Russian
nationals and businesses added to the European bloc's sanctions list after it
was revealed gas turbines made by German technology company Siemens had been
illegally shipped to Crimea.
Siemens said it had "credible information"
that its equipment had been diverted from its original destination.
Any change in sanctions would have to be agreed by all
28 EU member states.
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