Tag: Sanctions

SBI takes ‘cautionary’ view in processing transactions of Russian entities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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What are sanctions, do they ever work and could they stop Russia’s invasion of Ukraine?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A key feature of the international community’s response to Russia’s aggression against Ukraine has been the adoption of sanctions. But what exactly are sanctions and how do they operate in practice? And most importantly, are they likely to have any meaningful impact? What are sanctions? Sanctions are coercive measures that can be applied to diplomatic, economic and cultural relations between states. Commonly non-military in nature, they are imposed by one state against another (unilateral sanctions) or by an international organisation, such as the United Nations (collective sanctions).

Historically, measures have ranged from comprehensive sanctions to more targeted measures prohibiting trade in particular items, such as arms, timber, or diamonds. Some sanctions have circumscribed particular activities understood to benefit a target, such as diplomatic, sporting, and cultural relations, as well as travel.

They have also targeted particular individuals and groups who pose a threat to peace and security, including political elites, rebel groups, or terrorist organisations. How do economic sanctions operate in practice? Economic sanctions are multidimensional. They tend to include travel bans and financial sanctions. Financial sanctions consist of targeted asset freezes and restrictions on a wide variety of financial markets and services.

Where the financial sanction is an asset freeze, it is generally prohibited to deal with the frozen funds held by a designated person or entity. Funds are defined to include financial assets of every kind: cash, cheques, money orders, credit, debts, stocks and shares, interest, dividends or other income from or generated by assets.

Also Read | Ukraine-Russia conflict: From sunflower oil to beer, what consumer goods could get costlier

The designation of targeted individuals and entities can occur on the basis of a national listing procedure. Or, this designation may happen as a result of a sanctions regime adopted by an international organisation, which is then implemented by its members.

This twin-track approach is generally reflected in the sanctions practice of states which maintain consolidated lists. Separate consolidated lists are kept for those individuals and entities listed on the basis of unilateral sanctions and those listed as a consequence of collective sanctions.

Some international best practice exists regarding sanctions implementation, such as guidance by the G7 Financial Action Task Force. But compliance will always depend on individual countries and the particular features of domestic companies. Financial institutions, such as banks, will have in place automated procedures to filter incoming transactions before entering, and outgoing transactions before leaving their internal systems.

Are economic sanctions effective? They can be. The impact on listed individuals and entities can be severe, as illustrated by the internationally litigated cases of Kadi and Al Barakaat International Foundation v Council of the European Union or Nada v Switzerland (both cases in the context of financial counter-terrorism sanctions).

However, the general effectiveness of economic sanctions is uncertain, not least because it is empirically difficult to measure it. According to Dursun Peksen, a sanctions expert at the University of Memphis, economic sanctions result in meaningful behavioural change in the targeted country about 40 percent of the time.

Yet, as a recent study by the US government demonstrates, establishing clear causality is impossible. For example, a sanctioned country or individual may decide to change their behaviour for many reasons. Some of these changes may be unrelated to the sanctions.

What sanctions are now applied against Russia? The international community has imposed a mix of economic and diplomatic sanctions, with countries acting both unilaterally and collectively. The US and the UK have introduced unilateral sanctions targeting Russia’s two largest banks, Sberbank and VTB Bank. They have also frozen the assets and restricted the travel of key Russian oligarchs. Canada and Australia have followed suit.

Germany has indicated it is abandoning the Nord Stream 2 Baltic Sea gas pipeline project, designed to double the flow of Russian gas direct to the country. Poland, Czech Republic, Bulgaria and Estonia have closed their airspace for Russian airlines. As for collective sanctions, the UN Security Council will remain unable to impose any sanctions due to the veto power Russia holds as a permanent member. Indeed, Russia has already used this veto power to block a resolution condemning the invasion of Ukraine.

The EU, on the other hand, has quickly introduced asset freezes and travel bans preventing listed individuals from entering or transiting through EU territory. EU sanctions now apply to 555 Russian individuals and 52 entities, including 351 members of the Russian State Duma who have backed the aggression against Ukraine.

Also Read | Russia-Ukraine war: Here’s how Indian pharma cos might be impacted

The EU has since moved to adopt further sanction packages, which include targeting President Putin and Foreign Minister Lavrov directly. Together with the US and the UK, the EU has also agreed to remove select Russian banks from the SWIFT banking system, the financial messaging infrastructure that links the world’s banks.

The Council of Europe in Strasbourg has also applied unprecedented diplomatic sanctions. It has suspended Russia from its rights of representation in the Committee of Ministers and in the Parliamentary Assembly. Are the sanctions likely to have any meaningful impact? Too early to say, but probably not in the short term.

The unilateral and collective sanctions that have been applied are comprehensive. They have also been adopted swiftly. Some of the measures, such as targeting Putin and Lavrov personally, are unprecedented. On the other hand, significant gaps remain and pose a considerable risk of fragmentation.

The example of Switzerland is a case in point. The Swiss government has voiced support for complementing EU sanctions. Yet, it has so far shied away from applying targeted asset freezes of those individuals listed by the EU, the US and other countries. As a New York Times analysis details, there is also growing concern that Russian companies may evade sanctions by turning to cryptocurrency tools, including the so-called digital ruble and ransomware.

Catch up on LIVE Russia-Ukraine War updates here.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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Russia-Ukraine War: India abstains on UNSC resolution, says dialogue ‘only answer’ to settle disputes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India abstained on a UN Security Council resolution by the US that deplores in the strongest terms Russia’s aggression” against Ukraine, as New Delhi called for the immediate cessation of hostilities and asserted that dialogue is the only answer to settling disputes.

The 15-nation Security Council voted on the draft resolution Friday afternoon by the US and Albania and co-sponsored by a “cross-regional” group of 67 UN member states, including Australia, Estonia, Finland, Georgia, Germany, Italy, Liechtenstein, Lithuania, Luxembourg, New Zealand, Norway, Poland, Romania and the United Kingdom.

India, China and the UAE abstained on the resolution, which received 11 votes in favour by Albania, Brazil, France, Gabon, Ghana, Ireland, Kenya, Mexico, the UK and the US. The resolution was blocked since permanent member Russia, and President of the Security Council for the month of February, used its veto.

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India is deeply disturbed by the recent turn of developments in Ukraine. We urge that all efforts are made for the immediate cessation of violence and hostilities, India’s Permanent Representative to the UN Ambassador T S Tirumurti said in the country’s explanation of vote in the Council.

Tirumurti also said India is deeply concerned about the welfare and security of the Indian community, including a large number of Indian students, in Ukraine. He said that no solution can ever be arrived at, at the cost of human lives.

Dialogue is the only answer to settling differences and disputes, however daunting that may appear at this moment. It is a matter of regret that the path of diplomacy was given up. We must return to it. For all these reasons, India has chosen to abstain on this resolution, he said.

The envoy said the contemporary global order has been built on the UN Charter, international law, and respect for the sovereignty and territorial integrity of states. All member states need to honour these principles in finding a constructive way forward, he said.

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Russia, a permanent member of the 15-nation powerful Security Council, used its veto power and the resolution failed, as expected, but Western nations said the resolution seeks to show Moscow’s isolation on the global stage for its invasion and actions against Ukraine. All eyes were on how India will cast its vote on the resolution given that New Delhi has strong defence ties with Moscow.

The Council resolution, which condemned Russia’s February 23 declaration of the special military operation in Ukraine, reaffirms its commitment to the sovereignty, independence, unity, and territorial integrity of Ukraine within its internationally recognised borders.

The UNSC meeting was delayed by two hours and there were some changes in the language of the draft resolution that was finally put to vote. An earlier version of the draft had contained language condemning the 23 February 2022 declaration by the President of the Russian Federation of a special military operation in Ukraine.

The final version of the draft that was put to vote removed the reference to the Russian president (Vladimir Putin) as well as the mention of Chapter VII of the UN Charter, which states sanctions and authorisation of force. The final resolution also removed a stronger word condemns and instead used the word deplores for Russia’s aggression.

The resolution deplores in the strongest terms Russia’s aggression against Ukraine and decides that Russia shall immediately cease its use of force against Ukraine and shall refrain from any further unlawful threat or use of force against any UN member state.

Also Read: Ukraine crisis throws global central banks’ rate-hike plans off track

The resolution also said that Russia shall immediately, completely, and unconditionally withdraw all of its military forces from the territory of Ukraine within its internationally recognised borders.

US Ambassador to the UN Linda Thomas-Greenfield, before the vote said in the Council, that this is a “simple vote and those voting no or abstaining align themselves with the aggressive and unprovoked actions of Russia.

“Let me put it plainly: Vote yes if you believe in upholding the UN Charter. Vote yes if you support Ukraine’s or any state’s right to sovereignty and territorial integrity. Vote yes if you believe Russia should be held to account for its actions. Vote no, or abstain, if you do not uphold the Charter, and align yourselves with the aggressive and unprovoked actions of Russia. Just as Russia had a choice, so do you,” she said.

The resolution also deplores Russia’s decision related to the status of certain areas of Donetsk and Luhansk regions of Ukraine as a violation of the territorial integrity and sovereignty of Ukraine and inconsistent with the principles of the Charter of the United Nations.

The resolution said Moscow shall immediately and unconditionally reverse the decision related to the status of certain areas of Donetsk and Luhansk regions of Ukraine.

It said Moscow shall immediately and unconditionally reverse the decision related to the status of certain areas of Donetsk and Luhansk regions of Ukraine. It calls on the parties to abide by the Minsk agreements and to work constructively in relevant international frameworks, including in the Normandy Format and Trilateral Contact Group, towards their full implementation.

India has so far refrained from condemning Russia’s actions in Ukraine and in a statement in the Security Council on Wednesday night, just as Putin ordered Ukraine’s invasion, Tirumurti expressed deep concern over the developments, which if not handled carefully, may well undermine the peace and security of the region.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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Explained: What new ‘massive’ sanctions could Russia face; their implications

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The European Union, NATO and the members of the Group of 7 (G7) would respond to Russia’s military operation in Ukraine with “most massive sanctions,” Germany said on February 24.

“We will launch the full package with the most massive sanctions against Russia and we will strengthen our security and our allies,” AFP quoted Annalena Baerbock, German Minister of Foreign Affairs, as saying.

Earlier in the day, US President Joe Biden said the world would “hold Russia accountable” for the death and destruction underway in Ukraine. He said the US, its allies and partners would unveil new restrictions on Russia “in a united and decisive way.” Biden is likely to spell out fresh sanctions when he addresses the nation later on February 24.

Also read: Snapshot: Here’s how the world reacted to Russian invasion of Ukraine

Ahead of an emergency meeting of the G7 industrialised nations, British Prime Minister Boris Johnson said the West would agree to “massive package of economic sanctions designed in time to hobble the Russian economy,” AFP reported.

The US, UK and other countries have already announced measures to force Russian President Vladimir Putin to pull back military from Ukraine. Russian forces launched the military assault on Ukraine soon after Putin announced his decision in a pre-dawn TV statement. The next round of sanctions may have a deeper impact than the underwhelming initial tranche.

Also read: Russia-Ukraine crisis drains billionaire wealth, Russia’s super-rich lose $32 billion

What sanctions have been imposed so far?

On February 23, the West imposed a number of sanctions on Russia for ordering troops into eastern Ukraine after recognising two pro-Russia regions as independent. The sanctions by the US, EU and UK targeted banks and wealthy individuals. Germany halted a $11.6-billion gas pipeline project, the Nord Stream 2, owned by Russian state-owned gas giant Gazprom.

Also read: US slaps sanctions on company building Russia’s Nord Stream 2 pipeline

Washington prevented two Russian banks — VEB and Promsvyazbank — from trading in debt markets in the US and Europe.

UK announced sanctions on three Russian billionaires Gennady Timchenko, Boris Rotenberg and Igor Rotenberg, and five Russian banks, Rossiya Bank, IS Bank, General Bank, Promsvyazbank and Black Sea Bank.

Also read: Russia-Ukraine crisis: Meet the 3 oligarchs sanctioned by UK

Russia will also not be allowed to sell sovereign debt in London, UK Foreign Secretary Liz Truss said on February 23.

Sanctions by the 27-member EU targeted 351 Russian politicians who voted for recognising the two separatist regions in Ukraine. Another 27 Russian officials and institutions from the defence and banking sectors also faced sanctions from the EU.

New round of sanctions 

The US and EU are considering sanctions that could block Russia’s access to technology and financial markets. Biden could unleash fresh reprisals on members close to the Russian President.

One measure that the West could take would be to exclude Russia from the global financial messaging service, SWIFT. Ukraine’s Foreign Minister Dmytro Kuleba has already requested the world to immediately take this measure.

Also read: Explainer: How Western sanctions will target Russia

Based in Belgium, SWIFT is a banking system that is used by financial institutions around the world for quick transactions between accounts in 200 different countries. Under pressure from the US, SWIFT had banned Iran from its system in 2012. Russia could face delays in payments for its oil and gas exports if this sanction is imposed.

Another tough sanction would be to block Russian oil and gas exports. However, European nations would be largely impacted by this decision as Russia supplies 26 percent of crude oil and 38 percent of the region’s gas, BBC reported.

Also read: Supply chain bottlenecks to worsen as Russia-Ukraine conflict spirals

The US, EU and UK could also think of blacklisting Russian banks and preventing them from conducting international transactions. If more Russian banks are sanctioned, it could have a devastating impact on the financial sector of the country. However, the move would hurt western investors who have pumped in money into these banks as well.

Another restriction could be barring companies from selling goods such as semiconductor microchips to Russia. This too is likely to hurt Western companies that manufacture and supply semiconductor microchips.

Also read: Oil breaches $100 for first time since 2014 on Ukraine attacks

The US could ban Russia from transactions involving US dollars. UK PM Boris Johnson has also threatened to stop Russian companies using the British pound.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US, Europe and others to impose fresh sanctions on Russia for backing Ukraine rebels

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US President Joe Biden on Monday signed an executive order imposing financial sanctions on two breakaway republics in eastern Ukraine freshly recognised by Russia as independent regions and said more were in the making if necessary.

In response to Russian President Vladimir Putin’s decision to recognise two pro-Moscow territories as independent, the US banned fresh investment, trade and financing by people from the US to, from, or in the so-called Donetsk People’s Republic and Luhansk People’s Republic located in the Donbas region of eastern Ukraine, White House press secretary Jen Psaki said in a statement.

On Monday, Putin signed decrees in a ceremony on the state television recognising the two self-proclaimed republics — Donetsk People’s Republic (DNR) and the Luhansk People’s Republic (LNR).

Psaki said these sanctions were separate from the wider measures that the US and its allies were readying should Russia invade Ukraine.

Although the two regions have limited exchange with US citizens, the new sanctions could be seen as the most dangerous East-West confrontation since the collapse of the Soviet Union, AFP reported.

Calling all allies

After Putin’s speech on Monday, the US President is said to have discussed matters with Ukrainian President Volodymyr Zelensky. He also spoke to French President Emmanuel Macron and German Chancellor Olaf Scholz, AFP reported.

When UK wakes up today

On Tuesday morning, UK Prime Minister Boris Johnson will chair a meeting of the UK’s emergency Cobra committee to agree on a package of immediate sanctions on Russia.

According to The Guardian, the package could target “those complicit in the violation of Ukraine’s territorial integrity” for now, although greater sanctions could follow in the aftermath of an invasion.

European Union 

The members of the European Union have agreed to announce imposing a “limited package of sanctions” against those who were involved in the decision to recognise the two self-proclaimed republics in eastern Ukraine, Dutch Prime Minister Mark Rutte said.

Canada

Canada will impose sanctions in response to Putin’s recognition of the two regions, foreign minister Melanie Joly said on Monday. Canada will join its allies to “react firmly to this blatant disregard for international law” Joly said in a statement, Reuters reported.

Australia

Australia is working with the US, UK, EU and other governments “to ensure there are severe costs for Russia’s aggression”, the country’s foreign affairs minister Marise Payne said. Australia is prepared to impose “swift and severe sanctions” on key Russian individuals and entities, Payne said.

More action expected

The US and its European and other allies have designed a package of economic sanctions on Russia in case of an invasion of Ukraine. The level of Western sanctions would depend on the extent of the Russian offensive.

Daleep Singh, deputy US national security advisor for international economics, on Friday said the sanctions would cripple Russia, isolate it from the global financial markets and deprive it “of the most sophisticated technological inputs”, AFP reported.

According to Singh, the Western sanctions would lead to intense capital outflows, higher pressure on the Russian currency, surging inflation, economic contraction and erosion of productive capacity.

Read Also | Explainer-What will Russian recognition of breakaway Ukraine regions mean?

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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Is China really on Iran’s side in the nuclear talks?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As negotiations between the US and Iran in Vienna to revive the 2015 Iran nuclear deal are on pause till next week, political experts believe that though China appears to be representing Iran’s demands, it may not side with Tehran at the end.

China has openly supported Iran saying the US should lift all sanctions inconsistent with the nuclear deal.

However, even though it appears like Russia and China are siding with Iran, things could change during the meeting in Vienna, an expert said.

What’s the issue?

The US and Iran kicked off indirect talks to resuscitate the 2015 nuclear deal on Monday.

Iran signed the Joint Comprehensive Plan of Action (JCPOA) with the US, Russia, France, Germany, UK and China. The pact limited Tehran to civilian nuclear programmes in exchange for relief on economic sanctions from the US, EU and UN. Iran was not allowed to build an atomic bomb.

During US President Donald Trump’s tenure in 2018, the US had unilaterally withdrawn from the pact and imposed sanctions on Iran.

Iran has also breached the agreement by increasing its uranium stockpile to levels beyond that mentioned in the JCPOA.

After the election of Iran’s President Ebrahim Raisi in June, talks had been suspended for five months, which led to suspicions that Iran was advancing its nuclear program while playing with time.

Tehran now wants all sanctions to be lifted, while the US wants Iran to comply with the JCPOA before any relief is given.

Who’s siding with whom?

Iran has been trying to win its own teammates within the group, while the US is also doing the same, Asif Shuja of the National University of Singapore’s Middle East Institute told CNBC.

“The positions of all these powers are not rigid, they may change,” Asif Shuja of the National University of Singapore’s Middle East Institute told CNBC, adding that it is still unclear which country is siding with whom.

China’s stance

China has openly supported Iran’s demand for relief in sanctions and blamed the US for the crisis. “The US, as the culprit of the Iranian nuclear crisis, should naturally remove all illegal unilateral sanctions on Iran and third parties including China,” Wang Wenbin said at a press conference on Monday.

What the experts say

According to Shuja, the political alliance between Iran and China is not “rock solid”. Russia and China along with other permanent members of United Nations Security Council had voted to impose sanctions on Tehran in 2006, he said.

“For Iran, Russia and China are most important. But if you look at it from Russia and China’s side, Iran is not the most important player,” he told CNBC.

Another expert Amir Handjani from the Quincy Institute for Responsible Statecraft told CNBC that Iran was using China and Russia “as a buffer against the EU and the US.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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EU expands sanctions against Myanmar military, companies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The European Union expanded its sanctions against Myanmar’s military leaders and army-controlled companies ahead of a regional meeting to discuss the worsening crisis after army leaders deposed the elected government.

The Council of the European Union’s latest sanctions targets 10 individuals and two military-controlled companies already subject to sanctions by the US, Britain and other governments.

It is unclear if such moves are having any impact as the military escalates its efforts to crush opposition to its seizure of power. Myanmar’s economy is already in crisis, worsened by the coronavirus pandemic and by the mass civil disobedience movement that arose following the Feb. 1 coup.

The EU said the number of individuals sanctioned was expanded to 35 people it said were responsible for undermining democracy and the rule of law, for repressive decisions and for serious human rights violations.

The two military-controlled companies, Myanma Economic Holdings Public Company Ltd. (MEHL) and Myanmar Economic Corp. (MEC), have vast holdings in many industries and help to fund the military.

All are subject to having their assets frozen, travel banned and other measures. EU citizens and businesses are banned from doing business or providing funds to them without special permission.

Today’s decision is a sign of the EU’s unity and determination in condemning the brutal actions of the military junta, and aims at effecting change in the junta’s leadership,” the EU said in a statement.

Today’s decision also sends a clear message to the military leadership: continuing on the current path will only bring further suffering and will never grant any legitimacy,” it said.

Since the coup, security forces have killed at least 738 protesters and bystanders, according to the Assistance Association for Political Prisoners, which monitors casualties and arrests. It says more than 3,200 people are still detained, among the nation’s deposed civilian leader Aung San Suu Kyi and President Win Myint.

The EU already had an embargo on sales to Myanmar of arms and equipment that can be used for internal repression; an export ban on dual-use goods for use by the military and border guard police; export restrictions on equipment for monitoring communications that could be used for internal repression, and a prohibition on military training for and military cooperation with the army.

Last week, the US S&P 500 said it was removing India’s Adani Ports and Special Economic Zone Ltd. from its sustainability index due to its alleged dealings with Myanmar authorities. Adani did not respond to a request for comment on that move.

Former UN Secretary-General Ban Ki-moon on Monday exhorted the UN Security Council to act immediately to halt the violence and protect civilians. So far, the council has not taken such action, which would likely be blocked by China and Russia.

The Association of Southeast Asian Nations which is holding a summit on Myanmar this month maintains a policy of non-interference’’ in each others’ political matters and has rejected the idea of imposing sanctions against the junta.

Ban urged ASEAN to send a high-level delegation to Myanmar. He said he had tried unsuccessfully to make a diplomatic visit himself.

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Biden proposes strategic stability dialogue with Russia hours after slapping sanctions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hours after expelling 10 Russian diplomats in connection with interference in last year’s US presidential elections, President Joe Biden has proposed a strategic stability dialogue with Moscow, as officials of the two countries discussed the possibility of a summit meeting in Europe this summer.

The US on Thursday announced the expulsion of 10 Russian diplomats and slapped sanctions on over 30 individuals and key financial institutions as it held Kremlin accountable for interference in last year’s presidential election and the hacking of American federal agencies. Hours after signing the executive order imposing sanctions on its erstwhile cold war rival, Biden told reporters at the White House that during a telephonic conversation with his Russian counterpart, Vladimir Putin, he had proposed that they meet in person this summer in Europe for a summit to address a range of issues facing both the countries.

”Our teams are discussing that possibility right now. And if that summit were to occur, and I believe it will, the United States and Russia could launch a strategic stability dialogue to pursue cooperation in arms control and security, Biden said. We can address critical global challenges that require Russia and the United States to work together, including reining in nuclear threats from Iran and North Korea, ending this (COVID-19) pandemic globally, and meeting the existential crisis of climate change, he said.

During the phone call, Biden said he expressed concern on Russia’s military build-up on the Ukraine border and in Crimea. ”I affirmed US support for the sovereignty and territorial integrity of Ukraine. And I strongly urged him (Putin) to refrain from any military action, he said. ”Now is the time to deescalate. The way forward is through thoughtful dialogue and diplomatic process. The US is prepared to continue constructively to move toward that process. My bottom line is this: where there’s an interest in the United States to work with Russia we should and we will. Where Russia seeks to violate the interests of the United States we will respond. We will always stand in defense of our country, our institutions, our people, and our allies, Biden said.

Biden said he discussed the nature of the relationship between the countries. ”And I was candid, respectful, the conversation was candid and respectful. Two great powers with significant responsibility for global stability, he said. President Putin and I have had a significant responsibility to steward that relationship. I take that responsibility very seriously as I’m sure he does. Russia and Americans are both proud and patriotic people. And I believe the Russian people, like the American people, are invested in a peaceful and a secure future of our world, he said.

Also Read: China poses single biggest geopolitical test for US in 21st century, says CIA Director

Biden said during the campaign for the presidency, he was unequivocal that if elected president he would respond to any attempt to influence the elections. I told him if it turned out that I thought that there was an engagement in our elections that I would respond. Later during the transition as we learned more about the SolarWinds cyber intrusion I made clear that I’d respond once we determined who had in fact conducted a hack on the scope and scale that occurred, he said. During the phone calls in January and again in April, Biden said he told Putin that the US would shortly be responding in a measured and a proportionate way. ”Because we have concluded that they had interfered in the election and SolarWinds was totally out of inappropriate,” he said.

Russia has denied any involvement in US elections or on offering the bounties. Moscow has also said that it has nothing to do with the SolarWinds computer attack. ”Today I have approved several steps including expulsion of several Russian officials as a consequence of their actions. I’ve also signed an executive order authorising new measures including sanctions to address specific harmful actions that Russia has taken against US interests. I was clear with President Putin that we could have gone further but I chose not to do so. I chose to be proportionate,” Biden said.

The United States is not looking to kick off a cycle of escalation and conflict with Russia. ”We want a stable, predictable relationship. If Russia continues to interfere with our democracy, I’m prepared to take further actions to respond. It is my responsibility as president of the United States to do so. But throughout our long history of competition, our two countries have been able to find ways to manage tensions and to keep them from escalating out of control,” he said.

”There are also areas where Russia and the United States can and should work together. For example, in the earliest days of my administration, we were able to move quickly to extend for five years the New START treaty and maintain that key element of nuclear stability between our nations. That was in the interest of the United States, of Russia, and quite frankly of the world. And we got it done,” he said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US set to slap new sanctions on Russia as soon as Thursday: Sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The United States will announce sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity, targeting several individuals and entities, people familiar the matter said. The sanctions, in which 30 entities are expected to be blacklisted, will be tied with orders expelling about 10 Russian officials from the United States, one of the people said.

The White House, the US State Department and the US Treasury Department did not immediately respond to requests for comment.

The action will add a new chill to the already frosty relations between Washington and Moscow, which has tested the West’s patience with a military build-up near Ukraine.

The wide-ranging sanctions would come in response to a cybersecurity breach affecting software made by SolarWinds Corp that the US government has said was likely orchestrated by Russia. The breach gave hackers access to thousands of companies and government offices that used the company’s products.

Microsoft President Brad Smith described the attack, which was identified in December, as ”the largest and most sophisticated attack the world has ever seen.”

The United States also intends to punish Moscow for alleged interference in the 2020 US presidential election. In a report last month, US intelligence agencies said Russian President Vladimir Putin likely directed efforts to try to swing the election to then-President Donald Trump and away from now-President Joe Biden.

Washington’s expected action is likely to exacerbate tensions in a relationship that slumped to a new post-Cold War low last month after Biden said he thought Putin was a ”killer.”

In a call on Tuesday, Biden told Putin that the United States would act ”firmly” to defend its interests in response to those actions, according to US officials’ account of the call. Biden also proposed a meeting with Putin ”in a third country” that could allow the leaders to find areas to work together.

In the past few weeks, Washington and its NATO allies have been alarmed by a large build-up of Russian troops near Ukraine and in Crimea, the peninsula that Moscow annexed from Ukraine in 2014.

”The hostility and unpredictability of America’s actions force us, in general, to be prepared for the worst scenarios,” Kremlin spokesman Dmitry Peskov told reporters last week, anticipating the new sanctions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US sanctions Chinese computer makers in widening tech fight

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Biden administration has added seven Chinese supercomputer research labs and manufacturers to a US export blacklist in a spreading conflict with Beijing over technology and security. The measure announced Thursday is the latest sign President Joe Biden is sticking to the tough line taken by his predecessor, Donald Trump, toward Chinese tech industries seen by Washington as potential threats.

The decision adds to mounting conflict over the ruling Communist Partys industrial plans, access to American technology and accusations of computer attacks and theft of business secrets.

The latest penalties block access to US technology for researchers and manufacturers the Commerce Department said build supercomputers used by the Chinese military in weapons development.

Biden has said he wants better relations with Beijing but has given no indication he will roll back sanctions imposed by Trump on Chinese telecom equipment giant Huawei and other companies.

The Communist Party has responded by declaring that accelerating efforts to transform China into a self-reliant technology power will be this year’s top economic priority.

Chinese-designed supercomputers have set records for speed but are assembled from US-supplied processor chips and other hardware.

The latest US penalties affect National Supercomputing Centers in the cities of Jinan, Shenzhen, Wuxi and Zhengzhou, Tianjin Phytium Information Technology, Shanghai High-Performance Integrated Circuit Design Center and Sunway Microelectronics.

Meanwhile, American telecom regulators are in the process of stripping three Chinese phone carriers of the right to operate in the United States.

Trump also tried to force the Chinese owner of video service TikTok to sell its US unit and issued an order barring Americans from investing in securities of companies deemed by the Pentagon to be linked to China’s military.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow