Putin discusses US sanctions with Russia's Security Council

Putin discusses US sanctions with Russia's Security Council

Putin discusses US sanctions with Russia's Security Council

The Kremlin on Thursday lashed out at new US sanctions on Moscow, calling them "absolutely illegal" and assuring investors that the country's financial system is firm despite declines in the ruble and domestic equities.

"Let us welcome the United Sanctions of America!"

But initial triumphalism swiftly turned sour as anger over what some U.S. lawmakers saw as an over deferential performance by Trump and his failure to confront Putin over Moscow's alleged meddling in United States politics galvanised a new sanctions push.

Peskov was referring to the nerve-agent attack on former spy Sergei Skripal and his daughter Yulia in March.

A senior State Department official said Wednesday that there could be exceptions.

Britain said it welcomed the U.S. response to the chemical attack in Salisbury, the English town where the Skripals were poisoned.

The United States announced new measures on Wednesday targeting Russian Federation that pushed the rouble sharply lower and sparked a wider sell-off over fears Russian Federation was locked in a spiral of never-ending sanctions.

The new sanctions will take effect on or around August 22, and relate to exports of electronic components and other technologies.

Russian Federation has repeatedly denied responsibility for the attack, and Russia's embassy in Washington said in a statement that Washington's findings against it in the case were not backed by evidence.

According to Russian Foreign Ministry spokesperson Maria Zakharova, the US restrictions will possibly include a ban on foreign assistance to Russia and sale of military and dual-use items to the country, as well as renunciation of providing state loans and other financial aid. Under U.S. law, the next round of sanctions will start unless Russian Federation admits it used chemical weapons on foreign soil, promises not to do it again and agrees to allow global inspectors access to sites in Russian Federation to verify it.

The Kremlin yesterday branded as "unacceptable" new USA sanctions against Russia over its alleged role in a nerve agent attack on a former spy, as the ruble and Russian stocks tumbled. It said Pompeo "reiterated that the United States seeks an improved relationship with Russian Federation, and agreed to future dialogue".

One tool it said it might use was limiting market volatility by adjusting how much foreign currency it buys.

Shares in Russia's main airline Aeroflot plunged by more than 10 percent but later rebounded.

"The Russian side will start examining response measures to the new unfriendly move of Washington", Zakharova said.

"We consider it absolutely unacceptable to link the new restrictive measures that we still consider illegal to the Salisbury case", Peskov said.

He said that Russian Federation will retaliate "with economic means, political means and, if necessary, other means". "They are trying to say that however bad it gets, the government isn't going to be borrowing much money, it will not be requiring financing from overseas".

The Salisbury attack in March also coincides with other recent actions inside the USA that were similarly audacious, including intricate influence operations in both the 2016 and 2018 elections and a hack of the US energy grid.

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