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Global Geo-political Series: Russian Prime Minister hits at new US sanctions calling it full-scale economic war

After the news came out that despite his reservations about the new sanctions bill on Russia, Iran, and North Korea, President Trump has signed the bill into law, the Russian Prime Minister Dmitry Medvedev said that the move shows that US establishment, which is known as the ‘Deep State’ outwitted President Donald Trump and it shows that the bilateral ties between Russia and the United States would never improve. He also accuses that the next step for the establishment is to remove him from power because he is a non-systematic player.

In a lengthy Facebook post in both Russian and in English, Mr. Medvedev said (Emphasis are ours),

“The US President's signing of the package of new sanctions against Russia will have a few consequences. First, it ends hopes for improving our relations with the new US administration. Second, it is a declaration of a full-fledged economic war on Russia. Third, the Trump administration has shown its total weakness by handing over executive power to Congress in the most humiliating way. This changes the power balance in US political circles.

What does it mean for them? The US establishment fully outwitted Trump; the President is not happy about the new sanctions, yet he could not but sign the bill. The issue of new sanctions came about, primarily, as another way to knock Trump down a peg. New steps are to come, and they will ultimately aim to remove him from power. A non-systemic player has to be removed. Meanwhile, the interests of the US business community are all but ignored, with politics chosen over a pragmatic approach. Anti-Russian hysteria has become a key part of both US foreign policy (which has occurred many times) and domestic policy (which is a novelty).

The sanctions regime has been codified and will remain in effect for decades unless a miracle happens. This legislation is going to be harsher than the Jackson-Vanik amendment as it is overarching and cannot be lifted by a special presidential order without Congress' approval. Thus, relations between Russia and the United States are going to be extremely tense regardless of Congress’ makeup and regardless of who is president. Lengthy arguments in international bodies and courts are ahead, as well as rising international tensions and refusal to settle major international issues.

What does it mean for us? We will steadily continue our work on developing the economy and social sector, take efforts to substitute imports, and solve major national tasks, relying mostly on ourselves. We have learned to do so in the past few years, in conditions of almost closed financial markets as well as foreign investors' and creditors' fear of investing in Russia upon penalty of sanctions against third parties and countries. To some extent, this has even been to our advantage, although sanctions are meaningless overall. We will cope.”

The communications are clearly showing that the Russians are losing hope on the Trump Presidency and the President’s promise to restore relations with Russia. That is why, expect more retaliatory moves to come from Russia, like the one that came earlier this week, where Russia brought the numbers of US personnel working in Russia in line with the numbers of Russians working in the United States, leading to an expulsion of 755 diplomats.

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July 18 12:30 UTC Released

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