Economy

Economic Commentary

Economic Calendar

Global Economies

Global Economic Calendar

U.S. and EU set sanctions against Russia

The United States and European Union imposed personal sanctions on Monday on Russian and Crimean officials involved in the seizure of Crimea from Ukraine as Russian Federation President Vladimir Putin signed a decree recognizing the region as a sovereign state.

The moves heightened the most serious East-West crisis since the end of the Cold War, following a disputed referendum in the Black Sea peninsula on Sunday in which Crimea's leaders declared a Soviet-style, 97% vote to secede from Ukraine.

Within hours, the Crimean parliament formally asked that Russia "admit the Republic of Crimea as a new subject with the status of a republic". Putin will on Tuesday address a special joint session of Russia's State Duma, or parliament, which could take a decision on annexation of the majority ethnic-Russian region.

That would dismember Ukraine, a former Soviet republic once under Moscow's thumb, against its will. Kiev and the West said the referendum, held under armed Russian occupation, violated Ukraine's constitution and international law.

Russian forces took control of Crimea in late February following the toppling of Ukrainian President Viktor Yanukovich after deadly clashes between riot police and protesters trying to overturn his decision to spurn a trade and cooperation deal with the EU in favor of cultivating closer ties with Russia.

U.S. President Barack Obama slapped sanctions on 11 Russians and Ukrainians blamed for the seizure, including Yanukovich, and Vladislav Surkov and Sergei Glazyev, two aides to Putin.

Putin himself, suspected in the West of trying to resurrect as much as possible of the former Soviet Union under Russian leadership, was not on the blacklist. A White House spokesman declined to rule out adding him at a later stage.

Amid fears that Russia may move into eastern Ukraine where there is a significant Russian-speaking community, Obama warned that "further provocations" would only increase Moscow's isolation and exact a greater toll on its economy.

A senior U.S. official said Obama's order cleared the way to sanction people associated with the arms industry and targets "the personal wealth of cronies" of the Russian leadership.

In Brussels, the EU's 28 foreign ministers agreed to subject 21 Russian and Ukrainian officials to visa restrictions and asset freezes for their roles in the events. They included three Russian military commanders in Crimea and districts bordering on Ukraine.