Biden Reiterates Sanctions Threats Against Putin, Germany Pushes for Energy Exemptions

LOCAL NEWS

• Biden confirms he would consider personal sanctions on Putin in the event of an invasion of Ukraine.
  • Earlier in Jan the Kremlin said “Introducing sanctions against the head of the government or the head of Russia is an extreme measure which is comparable to a breakdown in relations,” but it’s unclear is these measures would have any impact beyond a symbolic breakdown in relations
• US says it will respond to Russia’s security guarantees by the end of this week, and notes that a preview of the response has been shown to Ukraine with their feedback taken into consideration
• German government is pushing for an exemption for the energy sector if a decision is made to ban Russian banks from settling transactions in US dollars (SWIFT) under sanctions in the event of an escalation in Ukraine.
  • Germany is concerned that energy supplies to Europe could be in jeopardy, but the document noted that the exception would not prevent potential measures against the Nord Stream 2
• German threats following an invasion of Ukraine could include: a complete freeze of assets and a ban on operations for a select group of Russian banks, further restrictions on sovereign debt and capital market restrictions for state-owned enterprises, as well as capital market restrictions for some Russian state-owned enterprises.
  • Additionally, restrictions on the import of certain Russian metals and chemicals, as well as restrictions on the export of certain luxury and high-tech goods, tightening restrictions on goods that can be used for both civilian and military purposes