New U.S. sanctions on Russia not expected to severely target energy sector

The U.S. and its allies are expected to impose major new sanctions on Russia — punishing Vladimir Putin for ordering a full-scale invasion of Ukraine but stopping short of targeting some critical sectors of his nation’s economy.

Two people familiar with the plans, including a senior administration official, said Russian energy giant Rosneft is not expected to be a target of the new sanctions package. The administration is concerned about global energy markets, one of the sources said. Another person familiar said the focus of the sanctions will be on financial institutions.

Another senior administration official said “no option is off the table,” but “starting out with energy could actually benefit Putin and pad his pockets. Given high oil and gas prices, cutting off Russian oil and gas will drive prices up to Putin’s benefit. And as we have said repeatedly on the record, on background [and] off the record, our sanctions are designed to harm Russia’s economy, not ours.”

Asked if sanctions to be announced on both sides of the Atlantic will be big, a European official simply replied: “Yes.”

The expected announcement later on Thursday, as President Joe Biden briefs the press at 1:30 p.m., comes hours after Putin sent his troops into Ukraine from the north, east and south, while Russian warplanes and artillery units struck nearly 20 Ukrainian cities with precision-guided cruise missiles and conventional bombs. A senior defense official told reporters Thursday that Russia intends to “decapitate” the Ukrainian government and install their own puppet regime in the Ukrainian capital, Kyiv…. (Excerpt from Politico)