President Barack Obama is to sign a bill authorising new sanctions on Russia and offering further aid to Ukraine, despite concerns that it could cause a rift with Washington’s European allies.
The bill will have limited immediate impact but sets the groundwork for Congress to impose a much tougher set of Iran-style sanctions on Russia next year if the crisis in Ukraine escalates.
The new sanctions come as the Russian economy is teetering from the impact of falling oil prices and a rapid depreciation in the rouble, which forced the central bank to raise interest rates to 17 per cent on Tuesday. Western sanctions have played a role in prompting capital flight and undermining confidence in the Russian economy.
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