Sen. Menendez Presses Further Russian Sanctions
The Obama administration should continue to impose “narrow” sanctions on individuals and firms in Russian financial, energy and defense sectors, said Senate Foreign Relations Committee Chairman Bob Menendez, D-N.J., in opening remarks at a May 6 hearing on the ongoing crisis in Ukraine. The administration should specifically target energy exporting companies Rosneft and Gazprom, who have manipulated Ukrainian energy price and supply, and weapons exporter Rosoboron, added Menendez.
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"I’m not shy when it comes to sanctions; I believe they can be an effective tool of peaceful diplomacy, whether against Iran or Russian oligarchs who have made Moscow the home of more billionaires than anywhere else in the world,” said Menendez. “We could also pursue other individuals in Putin’s inner circle.” The Treasury’s Department Office of Foreign Assets Control (OFAC) has imposed a series of related sanctions, including sanctions on Rosneft CEO Igor Sechin (see 14042812). President Barack Obama and German Chancellor Angela Merkel vowed during a recent joint press conference to levy further sanctions on Russian officials and entities that destabilize Ukraine (see 14050530).
During the Foreign Relations Committee hearing, government officials criticized Russian action in Ukraine and echoed Obama’s assertion that additional sanctions are under consideration. “As the United States and our international partners continue to confront Russia’s illegal actions in Ukraine, we stand ready to further employ our arsenal of financial measures as the situation escalates,” said Assistant Secretary for Terrorist Financing at the Treasury Department Daniel Glaser in written testimony. “A diplomatic resolution to the crisis remains our goal, but if Russia chooses to continue its illegal and destabilizing actions in Ukraine, we can impose substantial costs on, and expand the isolation of, an already weak Russian economy.” The Russian ruble continues to depreciate, while S&P has downgraded ratings and outlook for a number of Russian banks and corporations, said Glaser.