U.S., Germany slap initial sanctions on ORDLO recognition

The U.S. has announced a first round of sanctions in
relation to Russia’s Feb. 21 recognition of the break-away territories of
Ukraine (ORDLO) as independent of Ukraine. The sanctions, enacted by executive
order, expand upon previous sanctions related to those first enacted in 2014.
The order, posted on whitehouse.gov, states that the sanctions are due to
Russia’s contradiction of its responsibilities under the Minsk agreements. The
sanctions forbid a variety of financial, goods, property and other transactions
with entities connected to LNR and DNR.

Further U.S. sanctions are expected to be announced on
Feb. 22, reuters.com reports. These sanctions are to be levied in coordination
with European allies.

German chancellor Olaf Scholz stated on Feb. 22 that
he has requested that the Economics Ministry withdraw the report on ensuring
energy security that is a required element of certifying the Nord Stream II
pipeline, interfax.ua reports.

James Hydzik: The
sanctions against Russia have to be spot-on. Too soft and Russia will feel
emboldened; too strong and Russia has nothing to lose. Just right, and Russia
gets the message, or moves from Plan B to Plan C (assuming that Plan A was
thwarted by the 1400+ tons of military hardware flown in). At risk is a
military invasion into land currently controlled by the government of Ukraine.
Given the tone of Putin’s speech on Feb. 21, further military movements near
the current Line of Contact are highly likely. A strong response, with yet
harsher sanctions still to come, will limit those movements, likely to the
south of the current lines.