U.S. suspends trade, military ties with Russia

PanARMENIAN.Net - The Obama administration suspended trade and military ties with Moscow and said Monday, March 3, that punitive sanctions against Russia now are "likely," in a sharply escalating series of actions responding to the Russian military intervention in Ukraine, the Wall Street Journal reports.

The steps all came a day in advance of Secretary of State John Kerry's arrival in Kiev, adding up to a coordinated U.S. move to embrace embattled Ukraine and shun Russia, which has sent thousands of troops the U.S. called an "occupation" force.

President Barack Obama said the U.S. is considering a "whole series" of economic and diplomatic punitive measures in response to President Vladimir Putin's decision to dispatch troops, a move Obama warned will be "costly" for Moscow.

The president, speaking to reporters during a White House meeting with Israeli Prime Minister Benjamin Netanyahu, said Kerry will arrive in Ukraine Tuesday with a 'very specific and concrete' aid package for the interim government.

U.S. lawmakers are considering an aid package for Ukraine. Sen. Robert Menendez (D., N.J.), chairman of the Senate Foreign Relations Committee, said legislation could include $1 billion in loan guarantees and technical assistance for energy reforms, to support elections, combat corruption and assist in the recovery of stolen assets.

The emerging package could receive bipartisan support in both the House and Senate and lawmakers signaled they could act quickly on legislation.

In response to the Russian military move, the U.S. has already canceled meetings to prepare for June's Group of 8 leading nations summit in Russia. Obama said Putin should expect additional steps if Russia doesn't retreat.

Among steps Monday, the U.S. said it would suspend talks with Russia aimed at boosting trade and investment, part of an effort to put pressure on Moscow after its military intervention in Ukraine.

U.S. officials in recent months had begun informal negotiations with Russian counterparts in an effort to boost economic ties. Compared with the size of their economies, Russia and the U.S. have a small trade relationship, representing just 1% of U.S. imports and exports from around the world.