United State Of America – President Biden issued an Executive Order moment ago in response to President Putin’s alleged recognition claims of Donetsk and Luhansk People’s Republics (DNR and LNR) as “independent” republics. Stated in a White House press release moments ago President Biden stated that President Putin’s actions contradict Russia’s promises under the Minsk agreements, call into question Russia’s purported commitment to diplomacy, and endanger Ukraine’s sovereignty and territorial integrity.

He has made it clear within the press release and Executive Order that this is only with regards to the current action by Putin today suggesting intense escalation will follow if Putin progresses. This implies strict sanctions on all trade and commerce with Russia and possibly it’s allies if escalation does not cease by Putin.

RUSSIA AND USA TRADE FACTS:

U.S. goods and services trade with Russia totaled an estimated $34.9 billion in 2019. Exports were $10.9 billion; imports were $24.0 billion. The U.S. goods and services trade deficit with Russia was $13.1 billion in 2019.

UKRAINE BACKGROUND AND FACTS:

Donetsk

• Donetsk, historically known as Aleksandrovka, Yuzivka (or Hughesovka), Stalin, and Stalino, is a city in eastern Ukraine located on the Kalmius River in the disputed Donetsk Oblast.
• While the city is internationally recognized as being in Ukraine, it is de facto administered by the Donetsk People’s Republic, which claims it as its capital city. This went unnoticed until 2022, when it was acknowledged only by Russia as part of the 2021–2022 Russo-Ukrainian crisis.
• The population in the city core was predicted to be 905,364 (as of 2021), with a population of over 2 million across the metropolitan area. According to the 2001 Ukrainian Census, Donetsk was Ukraine’s fifth-largest city.

Luhansk

• Luhansk, also known as Lugansk, is a city in eastern Ukraine near the Russian border in the disputed Donbas region. It was also known as Voroshilovgrad 1935–1958 and 1970–1990.
• The capital and administrative center of the Luhansk People’s Republic (LPR), a breakaway state founded in 2014 by pro-Russian separatists, is now located in Luhansk.
• Previously unrecognized, Russia claimed this to be an old Russian region in 2022, during the Russo-Ukrainian conflict of 2021–2022.
• The city and its surrounding areas have been major battlegrounds in the Donbas War.
• Luhansk was the administrative center of Luhansk Oblast until it was captured by the LPR.
• The current population is estimated at 399,559 people (2021 est.)

 

 

THE EXECUTIVE ORDER STATES:

• New investment in the so-called DNR or LNR regions of Ukraine by a United States person, wherever located;
• The importation into the United States, directly or indirectly, of any goods, services, or technology from the so-called DNR or LNR regions of Ukraine;
• The exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any goods, services, or technology to the so-called DNR or LNR regions of Ukraine;
• And any approval, financing, facilitation, or guarantee by a United States person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be covered by these prohibitions if performed by a United States person or within the United States.

The Executive Order provides authority to impose sanctions on persons determined:

• To operate or have operated since the date of the order in the so-called DNR or LNR regions of Ukraine;
• To be or have been since the date of the order a leader, official, senior executive officer, or member of the board of directors of an entity operating in the so-called DNR or LNR regions of Ukraine;
• To be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order;
• Or to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order.

The Department of the Treasury is issuing six General Licenses to ensure that humanitarian and other related activity can continue in these regions:

• The purpose of this E.O. is to deny Russia the chance to profit from its blatant violations of international law. These actions are not directed at the people of Ukraine or the Ukrainian government.
• Treasury’s General Licenses are designed to support the innocent people who live in the so-called DNR and LNR regions who did not have a choice in Russia’s destabilizing and illegitimate actions today.
• The licenses allow a short-term wind down of activities, as well as for the export to the regions of food, medicine and medical devices, and ensure personal remittances can continue to flow.
• The licenses also allow telecommunications and internet services to remain operational, and mail services to continue.
• The licenses allow international organizations to be able to provide aid to the people in these two regions.