Instead of a sweeping package that crippled top Russian banks, cut its financial transactions off from the global economy, or personally singled out Vladimir Putin — the U.S. and its allies settled on a modest “first tranche” of penalties. Markets responded with a shrug, underwhelmed by the tit-for-tat approach.
Yet the sanctions hardly amounted to the precedent-shattering, economy-crippling measures the U.S. and its partners long telegraphed if Russian troops rolled across the border. The most consequential move came from Germany, which announced it was halting certification of the Nord Stream 2 pipeline and threw into jeopardy the $11 billion project that would have solidified Russia’s grip on Europe’s energy sector. Top U.S. diplomat Antony Blinken later announced a summit this week with Russian Foreign Minister Sergei Lavrov was off.
Brian O’Toole, a senior fellow at the Atlantic Council who previously worked in the U.S. Treasury Department’s sanctions unit, called Biden’s sanctions “incremental.” Senator Robert Menendez, a Democrat from New Jersey, speaks with members of the media following a vote in the U.S. Capitol in Washington, D.C., U.S., on Tuesday, Feb. 1, 2022. Senators negotiating a sanctions package intended to deter a Russian invasion of Ukraine said they’re optimistic they’ll resolve lingering disagreements and strike a deal this week.“I don’t know what we need to wait for,” Menendez said in an interview with CNN.
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Global stocks steady amid hope Russia-Ukraine tension will easeUS stock index futures rally and euro rises as a glimmer of hope emerges for a diplomatic solution to the Russia-Ukraine standoff
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