• Seven
officials and 17 companies targeted
•
Statement: involvement in Ukraine violence 'indisputable'
theguardian.com,
Spencer Ackerman in New York, Julian Borger and Jennifer Rankin in London, Monday
28 April 2014
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President Barack Obama speaks in Kuala Lumpur on Monday. Photograph: Carolyn Kaster/AP |
The US and
the European Union stepped up their sanctions on President Vladimir Putin’s
inner circle on Monday, accusing Russia of stoking violence and political
tension in eastern Ukraine.
The White
House announced it was adding seven prominent Russians to a blacklist subject
to visa bans and asset freezes, including two officials particularly close to
the Russian leader: Igor Sechin, the head of Russia’s largest oil company
Rosneft, and Vyacheslav Volodin, first deputy chief of staff in the presidency,
widely believed to run its internal political strategy.
“Putin’s
decision to move into Crimea is believed to have been based on consultations
with his closest advisers, including Volodin,” a US Treasury statement said.
Accusing
Russia of continuing to “fund, co-ordinate, and fuel a heavily armed separatist
movement” in eastern Ukraine, the US also imposed asset freezes on 17 Russian
companies, which will also be denied trading licences.
After a
meeting of European ambassadors in Brussels, the EU declared it was increasing
its own list of targeted sanctions from 33 to 48 top Russians. The 15 new names
added to the list are not due to be published until Tuesday.
Both the US
and UK warned that broader sanctions against whole sectors of the Russian
economy would be forthcoming in the event of more overt Russian miltary
intervention in eastern Ukraine, despite concerns that such measures would pose
a risk to the global economy, and have limited support inside the EU.
Speaking in
Manila, Obama said the goal of the new round of sanctions was to change the
Russian calculation in its alleged sponsorship of separatists in Ukraine. “The
goal is not to go after Mr Putin personally. The goal is to change his calculus
with respect to how the current actions that he's engaging in Ukraine could
have an adverse impact on the Russian economy over the long haul,” Obama said.
The
administration said that further sanctions could include targeting sectors of
the Russian economy such as financial services and energy, the impact of which
would be “far more powerful” than those announced on Monday, officials said.
The tier of
sanctions announced on Monday had been prepared some weeks ago but had been
held back after an 17 April accord in Geneva signed by the US, Russia, EU and
Ukraine, intended to defuse the crisis. US officials said Russia had done
nothing to implement the measures agreed to, but had instead fuelled the
separatist takeover of eastern Ukrainian cities.
Anger in
Washington and Brussels was exacerbated by the continued detention of seven
European military monitors by pro-Russian separatists in the town of Slavyansk.
A senior US official said that the seven, including four Germans, a Pole, a
Dane and a Czech officer, in Ukraine under the mandate of the Organisation for
Security and Cooperation in Europe (OSCE), had been “subjected to abuse in
capitivity” but that claim could not be confirmed.
At an
emergency meeting of OSCE member states in Vienna, the US delegate, Gary
Robbins, said the organisation faced “a hostage crisis”. Robbins said: “We
remain disappointed that senior officials in Moscow have not condemned the
abduction – nor have they demanded the team’s immediate release.”
He added:
“While the government of Ukraine is working in good faith to fulfill the
aspirations of the Geneva joint statement, Russia continues to deceive and
destabilise its neighbour. Despite its propaganda attempting to hide the truth,
Russia continues to fund, coordinate, and fuel a heavily armed separatist
movement in Donetsk.”
The OSCE
reported that other members of its special monitoring team had been temporarily
detained by separatists in two locations near Donetsk on Sunday. Monitors were
held in a heavily-barricaded police builidng in the town of Horlivka and were
accused of espionage before being allowed to leave.
Speaking in
the House of Commons on Monday, the British foreign secretary, William Hague
said: “Russia is already paying a serious price for its actions and the longer
it breaches the independent sovereignty of Ukraine the heavier the price it
will pay."
“Russia’s
actions betray their fear of democracy and the rule of law taking root in their
neighbourhood,” the foreign secretary added.
The
principal target of Monday's sanctions was Rosneft. Not only was its president,
Igor Sechin, singled out in the US blacklist, but also Sergei Chemezov, a
member of the board who also directs a state-owned holding company.
Like other
Russian energy firms, Rosneft has deep ties with American-based counterparts,
particularly ExxonMobil, with whom it has a $500m joint venture for exploration
of Arctic oil. The British oil giant, BP, also owns a nearly 20% stake in
Rosneft, but said on Monday it intends to remain a long-term investor in
Russia, despite the new sanctions.
Russian
officials vowed to take reprisal measures for the American sanctions package.
“We are certain that this response will have a painful effect on Washington,”
deputy foreign minister Sergei Ryabkov told the Interfax news agency.
The Obama
administration indicated it believes it is more likely to influence Russian
behaviour through economic pressure than providing additional and potentially
lethal military aid to Ukraine, citing the massive discrepancy in Ukrainian and
Russian military capabilities.
Last week,
a contingent of US soldiers from the 173rd infantry combat team arrived in a
Polish air base, part of a commitment of 600 troops the administration will
send to Poland and the Baltic states on a so-called training mission that the
White House hopes will have a deterrent value.
Fraud
investigators in Britain also froze $23m of suspected dirty money held in the
UK, as they opened an investigation into possible money laundering from
Ukraine, mostly by members of the ousted regime of Viktor Yanukovych.
The
announcement of a criminal investigation by the Serious Fraud Office comes on
the eve of an international conference in London aimed at helping Ukraine’s new
government recover stolen assets. The two-day Ukraine Forum on Asset Recovery,
organised by the Foreign Office and the US attorney general, brings together
investigating organisations to work on recovering millions in stolen assets.
Robert
Barrington, executive director of Transparency International in the UK, said
the $23m of suspected stolen money the SFO was looking at could be a tiny
proportion of the total money embezzled by corrupt officials in Ukraine. “One
would hope this would be the first announcement on a very long journey.”
Governments
were working much faster to recover stolen assets than after the Arab Spring,
he said. But questions persist about the UK’s legal framework for checking on
stolen money. “Why was the money here in the first place? If if was corrupt it
should never have been here.”
Last month the EU froze assets of former
president Yanukovych, and 21 other people held responsible for embezzling state
fund