New U.S. sanctions could pitch Russian Federation relations to new low

Vladimir Vasilyev, a researcher with the Institute of the USA and Canada, a government-funded Moscow think-tank, said U.S.

Under U.S. law, the Trump administration is required to impose new sanctions when governments are determined to have used chemical or biological weapons.

Russian Federation will "work on developing retaliatory measures", foreign ministry spokeswoman Maria Zakharova told journalists.

Peskov was referring to the nerve-agent attack on former spy Sergei Skripal and his daughter Yulia in March.

Sanctions waivers were in place for certain key sectors, including space flight activities and commercial aviation safety, the official said.

New sanctions proposals in U.S. Congress include legislation targeting Russia's state-controlled banks and freezing their operations in dollars - a move that would deal a heavy blow to the Russian economy.

Putin said in South Africa earlier in the day that he has about a visit to Russia, although it did not appear that the Russian government has gone through the official protocols involved with following up.

The first tranche, due to take effect August 22, will deny export licences to Russian Federation for the purchase of many items with national security implications.

Prime Minister of Russia Dmitry Медведев 716-rubl-rekordno-ruhnul-na-fone-novyh-sankcij-ssha considers that, in the case of the introduction of new anti-Russian sanctions by the USA this step can be regarded as a Declaration of economic war. Russia is already under USA sanctions for its 2014 invasion of Crimea, and the Trump administration expelled 60 Russians from the US and shuttered the Russian consulate in Seattle in response to the failed assassination attempt. And further sanctions will kick in three months later unless Russian Federation agrees to stop all chemical-weapons use and allow inspections of its chem facilities.

"The Russian side will start examining response measures to the new unfriendly move of Washington", Zakharova said.

One tool it said it might use was limiting market volatility by adjusting how much foreign currency it buys. It was an allegation Russian Federation has repeatedly denied.

"Making a linking to these events is for us unacceptable and such restrictions like those passed by the American side earlier. are absolutely illegal and do not correspond to global law", said Peskov.

During a regular press call on Thursday, Peskov said that it was "too early" at the moment for possible retaliatory sanctions to be discussed and reiterated the claim that Russian Federation was not involved in the poisoning of the former spy in Salisbury, England.

But Doctorow and Vladimir Vasiliev, from Moscow's Institute for USA and Canadian Studies, each agree that Russian Federation is more likely to take a wait-and-see approach than to try to get the first shot in.

European countries and the United States expelled 100 Russian diplomats after the attack, in the strongest action by Trump against Russia since he came to office.

United States and European allies have publicly blamed the Kremlin for attempting to kill the two in the British town of Salisbury using a Novichok nerve agent, a claim Russian President Vladimir Putin has denied.

Vanessa Coleman