Biden prepares sanctions against Putin's inner circle

Why is the US concerned about Russian military activity?

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(CNN) - US

officials are weighing a broad set of sanctions on Russia to deter Russian President Vladimir Putin from launching an invasion of Ukraine, according to people familiar with the discussions.

These include new measures against members of Putin's inner circle and against Russia's energy producers, as well as a possible "nuclear option": disconnecting Russia from the international SWIFT payment system, used by banks around the world.

• Secretary of State Anthony Blinken says Putin has put in place the ability to invade Ukraine if he decides to do so

Officials said no final decisions had been made on whether and when to apply the new sanctions, noting that the Biden administration is currently in talks with European partners, many of whom have closer economic ties with Russia, in the hope to coordinate the action.

A senior administration official said Monday that the United States was prepared to take "substantial economic countermeasures" aimed at inflicting "significant and severe economic damage to Russia's economy" if Putin continues a military escalation in Ukraine.

"We believe there is a way forward that will allow us to send a clear message to Russia that there will be genuine, significant and long-lasting costs if it decides to go ahead with a military escalation," the official said, informing reporters ahead of the video call that Biden is scheduled to perform with Putin this Tuesday.

The official declined to specify what economic sanctions were being considered, but said the United States had engaged in "intense discussions with our European partners about what we would collectively do in the event of a major military escalation by Russia."

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People familiar with the discussions said the new economic sanctions could target a variety of sectors, including Russian power producers and banks.

The new sanctions could also target Russia's sovereign debt.

Is Russia preparing to invade Ukraine?

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They are also likely to go after Russia's top oligarchs, limiting their ability to travel and potentially cutting off access to American banking and credit card systems.

Officials have also been weighing the possibility of disconnecting Russia from the international SWIFT payments system, on which Russia remains heavily dependent, according to two sources familiar with the talks.

This is considered a "nuclear" option.

The European Parliament passed a non-binding resolution in spring calling for this measure should Russia invade Ukraine, and the United States has discussed it with its European Union counterparts.

The possibility of denying Russian energy producers access to debt markets in the event of an invasion is also being seriously debated, according to a senior administration official.

"We have put together a fairly aggressive package," the official said, and we have warned Russia that if it invades Ukraine, the United States and Europe will together impose the worst economic sanctions ever imposed on a country outside of Iran and Korea. North.

• Vladimir Putin announces that Russia's navy will deploy Tsirkon hypersonic missiles in 2022

But there are concerns that Russia could retaliate against any move by the US or its allies, even using its energy production as a weapon.

"The fear is that Russia will try to retaliate by slowing down production," a senior US official told CNN.

President Joe Biden addressed the possible actions on Friday, telling reporters that he was "putting together what I think is the most comprehensive and meaningful set of initiatives to make it very, very difficult for Mr. Putin to go ahead and do the thing. that people are concerned about what I can do. "

And Secretary of State Antony Blinken has referred to "high-impact economic measures" that are being considered to punish Russia.

Biden and Putin are scheduled to have a video call on Tuesday.

• Vladimir Putin argues that Russia does not use energy as a weapon

The Kremlin on Monday described the reports on possible sanctions as "news hysteria," reported Russia's state news agency Tass.

"This is not news, but an ongoing information hysteria that we are seeing in the media these days," Kremlin spokesman Dmitry Peskov said, according to Tass.

New data from US intelligence estimates that Russia could launch a military offensive in Ukraine in a matter of months by accumulating as many as 175,000 troops along the border, a surprising escalation that Biden has warned could have serious consequences. consequences.

In his speech last week, Putin said that he would call for specific agreements that preclude any further expansion of NATO eastward and the deployment of its weapons near Russia's borders.

Should Putin tell Biden on Tuesday that NATO should not admit Ukraine as a member, as he is expected to do during the video conference, Biden will likely not agree to the request.

• ANALYSIS |

  Satellite photos show a buildup of Russian military on the border with Ukraine and raise tensions

"We do not believe that talking about red lines is useful and, as the president has said, we are not going to act according to that logic of accepting anyone's red lines," said a senior administration official a day before the call.

The latest developments come after months of steady increases along the Russia-Ukraine border that have alarmed US and Western officials and sparked tense talks between US diplomats and their counterparts. .

CNN reported on Friday that Russian forces have the capabilities along the border with Ukraine to carry out a swift and immediate invasion, including the establishment of supply lines, such as fuel and medical units, that could sustain a protracted conflict, should Moscow decide to invade.

Officials said current levels of equipment stationed in the area could supply front-line forces for seven to 10 days and other support units for up to a month.

Russia Economic sanctions Ukraine