The United States and Germany have warned Russia of tougher economic sanctions if it disrupts the Ukraine presidential election later this month.
laying down this new red line, President Barack Obama and German Chancellor Angela Merkel indicated that the next step against Moscow would be broader sanctions, covering vital sectors such as banking, defence, energy and engineering.“If, in fact, we see the disruptions and the destabilisation continuing so severely that it impedes elections on May 25, we will not have a choice but to move forward with additional, more severe sanctions,” Obama said at a joint news conference here with Merkel, adding: “The next step is going to be a broader-based sectoral sanctions regime.”
Echoing his views, Merkel said: “The 25th of May (when Ukraine elects its new President) is not all that far away. Should it not be possible to stabilise the situation further, further sanctions will be unavoidable.”Russian President Vladimir Putin has thus far tended to dismiss as inconsequential the series of sanctions imposed by the US and European Union following Russia’s annexation of Crimea and other “provocative” moves in eastern Ukraine.
But Obama believes the sanctions have adversely impacted the Russian economy, adding Moscow will face increasing costs and growing isolation, both diplomatic and economic, if its leadership does not change course.“Already the ruble has fallen to near all-time lows. Russian stocks this year have dropped sharply, and Russia’s slipped into recession, Obama said, asserting: “Investors are fleeing, and it’s estimated that a hundred billion dollars in investment will exit Russia this year. Russian companies are finding it hard to access the capital they need, and Russia’s credit rating has been downgraded to just above junk status. In short, Russia’s actions in Ukraine are making an already weak Russian economy even weaker.”
The election on May 25 will choose a successor to President Viktor Yanukovitch, the pro-Russian leader who fled Kiev in February in the face of widespread unrest as protesters took full control of Ukraine’s capital.With an estimated 40,000 Russian troops massed on Ukraine’s eastern border, Western leaders believe that the Putin regime might well disrupt the election, with some even expecting an invasion.
“We are united in our determination to impose costs on Russia for its actions, including through coordinated sanctions….We’re united in our support for Ukraine, including the very important IMF programme approved this week to help Ukraine stabilize and reform its economy,” Obama said after the meeting with Merkel.Alleging that the Russian-backed groups are “heavily armed militants who are receiving significant support from Russia”, Obama said: “The Ukrainian Government has the right and responsibility to uphold law and order within its territory, and Russia needs to use its influence over these paramilitary groups so they disarm and stop provoking violence.”
Even while asserting that he and Merkel want to see a diplomatic resolution of the Ukraine crisis, Obama spoke of “a range of tools at our disposal, including sanctions” if Russia continued on its current course. The US and its European and G-7 partners are stepping up their planning, he said.As Merkel put it, “The 25th of May is a very crucial date in order to ensure that (Ukraine people’s right to self-determination), and we will see to it that elections can take place. The OSCE (Organisation for Security and Cooperation in Europe) will play a central role in all of this.”