Highlights:
"By Tuesday morning, the Europeans had observed and assessed enough. Germany announced it would shelve the controversial Nord Stream 2 gas pipeline. The United Kingdom put five Russian banks and three oligarchs on its sanctions list. The European Union said the 351 members of Russia’s Duma who voted to recognize the so-called Donetsk and Luhansk People’s Republics would face financial penalties, in addition to 27 “individuals and entities” undermining Ukraine’s sovereignty. Canada and Japan also took their own actions.
The U.S. piled on once the sun rose over Washington, D.C. Deputy national security adviser JON FINER used the “i” word on CNN, setting the table for President JOE BIDEN to announce America’s sanctions on Russia in a Tuesday afternoon address.
The “first tranche,” per Biden, will be sanctions on two Russian banks: VEB and an unnamed military bank. He also said Russia would be cut off from foreign financing after sanctioning the country’s sovereign debt, and that Wednesday the U.S. will target elites and their families, with a senior U.S. official later telling reporters the elites are ALEXANDER BORTNIKOV, SERGEY KIRIENKO and PETR FRADKOV. The Kremlin will pay a “steeper” price if its troops move further into Ukraine, Biden asserted, though he kept the door open to diplomacy even as Putin is shutting it.
But these moves mean the “deter an invasion” phase of the West’s response has ended. Now it’s on to the “deter a larger invasion of Ukraine” section of the crisis. For now, the West is holstering the massive sanctions package developed with allies to stop Russia from — as is widely expected — seizing other parts of its neighbor. A senior administration official told reporters after Biden's address that the U.S. stands ready to "press a button" to sanction Sberbank and VTB if Russia goes further. “We want to prevent a large-scale invasion of Ukraine,” the official said.
NEW MILITARY MOVEMENTS: Biden also announced new U.S. deployments from within Europe to the three Baltic NATO states, Estonia, Latvia and Lithuania, per our own PAUL McLEARY.
A defense official later said the new deployments will include about 800 infantry troops based in Italy, which will head to the Baltic, along with dozens of aircraft that will fan out among allied nations in NATO’s east.
Eight F-35s currently in Germany will also move to several spots "along NATO’s eastern flank," the official said, along with 20 Apache attack helicopters that will relocate from Germany to the Baltic region, and 12 more Apaches will move from Greece to Poland.
ASIAN NATIONS JOIN GANG UP ON RUSSIA: The U.S. has received assurances from three Asian nations — Singapore, Japan and Taiwan — that they will participate in the large global sanctions scheme targeting Russia for its invasion of Ukraine.
Key to the gambit is the Foreign Direct Product Rule, which “extends U.S. jurisdiction over products made with U.S. software or technology, even if those products are made abroad by foreign companies without other ties to the United States,” Foreign Policy’s JACK DETSCH and ROBBIE GRAMER wrote. “If implemented, it could hit many sectors of Russia’s economy in a way traditional sanctions might not — blocking Russia from importing technology critical to its oil and gas sectors; maritime, defense, and civil aviation industries; and even the import of cars, smartphones, and other consumer electronics.”
Those three Asian nations must also issue rules to ensnare technology bound for Russia. All parties have agreed — now it’s a matter of defining those rules.
“All semiconductors on the planet are made with U.S. software or tools in part, so this will catch any destined to Russia,” KEVIN WOLF, a former senior Commerce Department official now at the Akin Gump law firm, told Detsch and Gramer. “Unlike sanctions, jurisdiction attaches to the item—and the nationality of the companies involved is irrelevant.”
In effect, the participation of Asian partners in this play will severely restrict the kinds of technologies Russia can import, turning the vise an extra rotation on the country’s economy. If more countries join in, namely South Korea, the pressure would mount even higher."
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