U.S. set to slap new sanctions on Russia as soon as Thursday: sources

Trevor Hunnicutt, Humeyra Pamuk and Steve Holland
·2 min read
FILE PHOTO: Russian and U.S. state flags fly near a factory in Vsevolozhsk

By Trevor Hunnicutt, Humeyra Pamuk and Steve Holland

WASHINGTON (Reuters) - The United States will announce sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity, targeting several individuals and entities, people familiar the matter said.

The sanctions, in which 30 entities are expected to be blacklisted, will be tied with orders expelling about 10 Russian officials from the United States, one of the people said.

The United States is also expected to announce aggressive new measures targeting the country's sovereign debt through restrictions on U.S. financial institutions' ability to trade such debt, according to another source.

The White House, the U.S. State Department and the U.S. Treasury Department did not immediately respond to requests for comment.

The action will add a new chill to the already frosty relations between Washington and Moscow, which has tested the West's patience with a military build-up near Ukraine.

The wide-ranging sanctions would come partly in response to a cybersecurity breach affecting software made by SolarWinds Corp that the U.S. government has said was likely orchestrated by Russia. The breach gave hackers access to thousands of companies and government offices that used the company's products.

Microsoft President Brad Smith described the attack, which was identified in December, as "the largest and most sophisticated attack the world has ever seen."

The United States also intends to punish Moscow for alleged interference in the 2020 U.S. presidential election. In a report last month, U.S. intelligence agencies said Russian President Vladimir Putin likely directed efforts to try to swing the election to then-President Donald Trump and away from now-President Joe Biden.

Biden has also vowed to take action on reports that Russia offered bounties to Taliban militants to kill U.S. troops in Afghanistan.

The expected moves by the Biden administration are likely to exacerbate tensions in a relationship that slumped to a new post-Cold War low last month after Biden said he thought Putin was a "killer."

In a call on Tuesday, Biden told Putin that the United States would act "firmly" to defend its interests in response to those actions, according to U.S. officials' account of the call.

Biden also proposed a meeting with Putin "in a third country" that could allow the leaders to find areas to work together.

In the past few weeks, Washington and its NATO allies have been alarmed by a large build-up of Russian troops near Ukraine and in Crimea, the peninsula that Moscow annexed from Ukraine in 2014.

"The hostility and unpredictability of America's actions force us in general to be prepared for the worst scenarios," Kremlin spokesman Dmitry Peskov told reporters last week, anticipating the new sanctions.

(Reporting by Trevor Hunnicutt, Humeyra Pamuk and Steve Holland; Additional reporting by Daphne Psaledakis; Editing by Tim Ahmann and Michael Perry)