US imposes heavy sanctions on Russia

The United States will stop exporting certain energy products and technologies to Russia and freeze credits that encourage exports to Russia.

Key Russian sectors such as finance, energy and defense have become the target of the strongest US sanctions since the Ukraine crisis. However, the US insists this is not the beginning of a new cold war.

Speaking at the White House this morning, July 29 (Vietnam time), US President Barack Obama said that the US will stop exporting to Russia some energy products and technologies, and freeze credits to encourage exports to Russia as well as provide finance for economic development projects in Russia.

US President Obama warns Russia will pay more (Photo: AP)

Under the sanctions announced by President Obama, US companies and citizens are not allowed to provide finance to three major Russian banks: Bank of Moscow, Agricultural Bank of Russia and VTB Bank, which means the door to the US financial market will be closed to these three banks. The sanctions also target United Shipbuilding Corporation, a Russian defense technology company.

The European Union (EU) has previously agreed to sanction eight figures close to Russian President Vladimir Putin and restrict three Russian financial institutions from accessing EU capital markets. The EU sanctions will also block new arms contracts between Russia and Europe, ban exports of goods that can be used for both civilian and military purposes, and limit exports of energy equipment to Russia. If implemented together, these will be the strongest sanctions imposed by the US and Europe on Russia since the Cold War.

"The United States is working closely with Europe, and as a result, the sanctions announced today will have a greater impact. The sanctions we have imposed have weakened the Russian economy," President Obama said.

President Obama warned that if Russia continues on its current path, it will pay a much higher price. Mr. Obama said that foreign investors will withdraw about 100 billion USD from Russia in the coming time, while economic development projects in Russia are decreasing to almost zero.

“Russia is once again isolating itself from the international community, rolling back decades of progress. This is what Russia, and specifically President Putin, has chosen,” the US President said.

However, President Obama insisted that the latest sanctions were not a sign of a new cold war between the West and Russia, but a very specific problem related to Russia's unwillingness to acknowledge that Ukraine could go its own way.

Mr. Obama said that the US will continue to pursue a diplomatic solution to the Ukraine issue, but it is important that Russia understands that the path to this solution is to respect Ukraine's independence, sovereignty and territorial integrity./.

According to VOV