Ukraine crisis: President Biden wants a tough course against Russia - US companies don't like that at all
Created: 01/26/2022, 09:35 am
US President Joe Biden has threatened Russia with sanctions in the Ukraine conflict.
Now US corporations fear for their business.
© Patrick Semansky/AP/dpa
US President Joe Biden has threatened Russia with sanctions in the Ukraine conflict.
Large US companies are worried - and urge moderation.
Washington – The US economy warns against excessive measures in view of the tough sanctions announced by President Joe Biden * in the event of a Russian invasion of Ukraine.
According to the National Foreign Trade Council, companies must be allowed to fulfill existing obligations and products must be excluded from the measures.
He represents the interests of Chevron, General Electric and other large US corporations doing business in Russia.
At the same time, the big energy companies are urging Congress to limit the scope and timeframe of sanctions.
US corporations urge Biden governments to enter 'wind-down phase'
The Biden administration and Congress would "need to work out the details properly if they have to enforce the threatened sanctions," Jake Colvin, president of the National Foreign Trade Council, told Reuters.
“These details should include safe havens or settlement deadlines that allow companies to meet existing contracts and commitments.” Exemptions for essential medicines* and other humanitarian considerations should also be considered.
Energy companies have approached US lawmakers directly.
They are pushing for a “cooling off” or “wind-down” period.
They fear their assets will be confiscated if they fail to fulfill existing contracts in Russia, a congressional adviser said.
"The sanctions should be as targeted as possible to limit the potential damage to US companies' competitiveness," said a spokesman for the American Petroleum Institute, America's largest lobbying organization for oil and gas drilling.
The US Treasury Department does not comment on specific measures
Export sanctions are typically imposed in stages to give companies time to wind down their existing business or ensure delivery, said William Reinsch, a former senior US Commerce Department official. But in the current case, the sanctions could be imposed suddenly. This makes it more difficult to ensure a "handling phase", said Reinsch.
The US Treasury Department has taken steps to mitigate financial sanctions in the past. This included issuing licenses to protect senders of humanitarian aid and personal remittances to Afghanistan - despite sanctions against the Taliban who rule there. A senior Treasury official declined to comment on specific actions related to Russia. However, he added: "We are ready to impose heavy costs on the Russian economy while minimizing undesirable effects."
Russia has massed over 100,000 troops on the border with Ukraine.
Western countries fear an attack, which the government in Moscow rejects.
At the same time, Russia is calling on the West to limit its influence in Eastern Europe, and in particular to refrain from further eastward expansion of NATO.
In Ukraine, the government in Moscow has been supporting pro-Russian separatists in the east of the country for years.
In 2014, Russia* annexed the Ukrainian peninsula of Crimea.
(rtr)
*Merkur.de is an offer from IPPEN.MEDIA.
