Contributing to slower economic growth there
The Western sanctions came one week after Ukraine and Russian-backed separatists signed a cease-fire aimed at ending a monthslong conflict. The agreement has been routinely violated, and U.S. officials say they are yet to see signs that Russia is implementing the deal in good faith.
If Russia and the separatists do follow through on the accord, U.S. and European officials say they could roll back this current round of penalties. But officials said that because Russia moved troops and weaponry into Ukraine in recent weeks, it was necessary to levy penalties now rather than wait to see what comes of the cease-fire. Russia denies having a role in the conflict.
"Today's actions demonstrate our determination to increase the costs on Russia as long as it continues to violate Ukraine's territorial integrity and sovereignty," said David Cohen, Treasury undersecretary for terrorism and financial intelligence.
The West has levied multiple rounds of sanctions on Russia, contributing to slower economic growth there. But the penalties have had little impact on Russian President Vladimir Putin's calculus and U.S. officials privately acknowledge that there's no guarantee more sanctions will get him to stop his provocations in Ukraine.
The energy sanctions aim to move beyond inflicting immediate economic pain on Russia and instead focus on clouding its energy future. But there are also concerns that those penalties could ricochet and hurt Western businesses that are working with Russia on development projects, including U.S.-based Exxon Mobil and Britain's BP.
Both Western companies have ties to Rosneft, the Russian oil giant that was subjected to U.S. and European sanctions Friday. BP owns nearly 20 percent of Rosneft. Exxon's partnership with Rosneft is for exploring for oil in the technically difficult places that the sanctions target, including deep offshore, the Arctic offshore and shale deposits onshore.