Trump signs legislation intensifying sanctions against Russia

U.S. President Donald Trump signed on Aug. 2
legislation that intensifies sanctions against the governments of Russia, Iran
and North Korea. In relation to Ukraine, the legislation codified current
sanctions against Russia into law and requires the U.S. president to obtain
congressional approval before deciding to relax them. The legislation
strengthens sanctions imposed on Russia’s financial and energy sectors, and
opens the window for potential sanctions against state metallurgical, mining
and rail transit enterprises. It also gives the U.S. president the ability to
impose sanctions on Russian hydrocarbon exporters and creates the ability to
impose sanctions against Russia for undermining global cybersecurity.

The legislation calls for supporting reforms in
Ukraine’s energy sector, reducing dependence on Russia energy resources, and
opposing the Nordstream gas transit pipeline that will bypass Ukraine. It
earmarks USD 250 mln for a fund to oppose Russian influence, as well as USD 30
mln to support Ukraine’s energy security.

Zenon Zawada: Zenon
Zawada: We expected Trump would allow this bill to become law, though without
signing it. Indeed this signature should put a final end to any speculation
that Trump has any plans to renew relations and find compromise with Russia.
While this will keep the pressure on the Putin administration, this only
extends the war in Donbas and the country’s poor image for foreign investment,
which is desperately needed. The current trends – especially efforts in the
U.S. to give Ukraine lethal defensive weapons – are pointing to an escalation
in warfare by the 2019 elections in Ukraine.