The US and Europe are laying the groundwork to sanction broad sections of Russia’s economy if Moscow invades eastern Ukraine, President Barack Obama said on Friday, even as he acknowledged those sanctions may fail to deter Vladimir Putin.
So far, the US has slapped sanctions on individuals but hasn’t targeted entire economic sectors, such as Russia’s critical energy sector. Obama’s comments affirmed that barring a full-on military incursion, Russia is unlikely to face those beefed-up sanctions, which could ricochet and harm US allies in Europe that do business with Russia.
“We’ll continue to keep some arrows in our quiver in the event we see further deterioration,” Obama said during a news conference in South Korea, where the President was traveling. Obama said he planned to call key European leaders to discuss what’s transpired since a deal was reached in Geneva last week to de-escalate the crisis. Echoing harsh comments from US Secretary of State John Kerry, Obama said Russia has failed to uphold the deal by urging pro-Russian militias to give up buildings they’ve occupied in Ukrainian cities.