Obama to Sign New Sanctions Bill Against Russia

On Tuesday, December 25, the White House spokesperson announced that President Barack Obama is expected to approve a new congressional bill for sanctions against Russia in the coming days. According to the Associated Press, Josh Earnest stated that although Mr. Obama still has concerns about the bill, he believes it will provide him with the flexibility he needs. The new U.S. sanctions against Russia will target arms manufacturers and investors in oil projects. The news of the signing of the new sanctions bill comes as U.S. Secretary of State John Kerry stated on Tuesday, December 26, that Moscow has taken structural actions regarding the Ukraine crisis in recent days and expressed hope that this progress would continue. Kerry, speaking at a press conference in London, emphasized that Western sanctions against Russia are aimed at preventing Moscow's interference in Ukraine. He added that these sanctions are not intended to 'harm the Russian people.' The U.S. Secretary of State also noted the decline in the value of the ruble, Russia's currency, stating that Washington is monitoring the situation and attributing it to Western sanctions on one hand and the drop in oil prices on the other. Kerry further mentioned that if Vladimir Putin, the President of Russia, makes the right choice regarding Ukraine, U.S. and EU sanctions against the country could be lifted within days. Meanwhile, Sergey Lavrov, the Russian Foreign Minister, stated on Tuesday, December 25, in Paris that there are 'very serious reasons' for Moscow to conclude that Western sanctions are aimed at regime change in Russia. In this context, the Central Bank of Russia raised interest rates from 10.5% to 17% at midnight to counter the ruble's decline. According to AFP, an additional $6 billion in liquidity was injected into the market. Following the announcement of the new rate, the ruble slightly increased to above 60 rubles per dollar but then began to decline again. The ruble has lost about 50% of its value since the beginning of the year. The West has imposed economic sanctions against Russia in response to what it calls Moscow's practical support for Ukrainian separatists and in protest against the annexation of Crimea. However, the most significant factor in the decline of the Russian currency, which is one of the largest oil exporters, is considered to be the drop in crude oil prices. Half of the Russian government's revenue comes from oil and gas exports. The decline in crude oil prices over the past six months has had a devastating impact on financial resources and public trust in the currency. Meanwhile, according to Voice of Russia Radio, Elvira Nabiullina, the head of the Central Bank of Russia, stated on Tuesday that the decline in the ruble is a signal for the country's economy to adapt to new conditions. She said the country must learn to live under new conditions and focus on its financial resources. In this context, despite Russia's actions, the ruble fell another 10%. Russia: We will respond to new sanctions. The U.S. Congress approved the intensification of sanctions against Russia. Putin called Crimea a 'sacred' land. A review of two decades of fluctuations in the value of the ruble.