Russian Federation 'is ready for economic war with US' over sanctions

4 ways Team Trump can make Russia pay

Moscow has been trying with mixed success to improve battered U.S. -Russia ties since Donald Trump won the White House in 2016, and Russia's political elite was quick to chalk up a summit last month between Trump and Vladimir Putin as a victory.

The Kremlin has repeatedly denied the allegations, while the United Kingdom authorities have provided no proof of Russia's involvement in the case.

Following a 15-day congressional notification period, the sanctions will take effect on or around August 22, according to a statement from the State Department.

State Department spokeswoman Heather Nauert said it had been determined that Russian Federation "has used chemical or biological weapons in violation of worldwide law, or has used lethal chemical or biological weapons against its own nationals".

Analysts in Moscow said it was highly unlikely that Putin would allow inspectors to enter the country to head off the additional sanctions, since doing so would look like succumbing to US pressure.

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Sanctions waivers were in place for certain key sectors, including space flight activities and commercial aviation safety, the official said.

A congressional proposal to add sanctions targeting state-controlled banks and the freezing of Russian operations in dollars is also making its way around the hill.

While it was hard to assess so far in advance, they said it was more likely that only some of its provisions would be included as amendments in another piece of legislation, such as a spending bill Congress must pass before September 30 to prevent a government shutdown.

A State Department official said the sanctions could have a significant impact on trade with Russian Federation.

While Kremlin spokesman Peskov suggested the Kremlin was still weighing how to respond to the sanctions, other Russian officials were less circumspect.

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The sanctions came as an eagerly-watched contest for a previously safe Republican seat in the USA congress went to the wire, leading to speculation that voters were turning against Donald Trump and could punish the Republican Party at mid-term elections.

In Moscow, the ruble shed as much as 5% against the dollar on Thursday and stocks plunged as much as 9%, led by state banks and national carrier PJSC Aeroflot-Russian Airlines, which risk losing access to US markets if the sanctions escalate.

Our provision of foreign assistance is a tool of USA power and influence, and we're not going to foreswear that just because we have the obligation to impose some sanctions against Russian Federation.

The sanctions being applied recognize that reality and intend to make Russia pay a price for it where it hurts Putin most - in the Russian economy. In fact, a new spike in tensions with Washington could provide a convenient distraction for the Kremlin at a time when Putin faces domestic discontent over the government's effort to raise the retirement age.

"In this situation, building relations is impossible to even speak about". The carve-outs will include a - we will have a waiver for the provision of foreign assistance to Russia and to the Russian people.

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