Washington - U.S. President Joe Biden’s threatened to impose sanctions on Russia if Vladimir Putin invades Ukraine. However, some big companies and business groups are pushing the White House and lawmakers to be cautious.
A trade group representing Chevron, General Electric and other big U.S. corporations that do business in Russia is asking the White House to consider allowing companies to fulfill commitments and to weigh exempting products as it crafts any sanctions. At the same time, big energy companies are pushing Congress to limit their scope and time frame.
Russia denies planning an attack and says the crisis is being driven by NATO and U.S. actions. It is demanding security guarantees from the West, including a promise by NATO never to admit Ukraine. Moscow sees the former Soviet republic as a buffer between Russia and NATO countries.
Following multiple rounds of U.S.-Russia talks over Ukraine that failed to reach a breakthrough, Biden, who has long warned Moscow of economic consequences, upped the ante on Tuesday by saying Putin could personally face sanctions.
Direct U.S. sanctions on foreign leaders are rare but not unprecedented. Others who have faced sanctions include Venezuela's Nicolas Maduro, Syria's Bashar al-Assad and Libya's Muammer Gaddafi.
On Tuesday, a U.S. plane carrying military equipment and munitions landed in Kyiv, the third installment of a $200 million package to shore up Ukraine's defenses.
The Pentagon has put on alert about 8,500 U.S. troops in Europe and the United States to be ready to deploy to NATO's eastern flank if needed.
Russia said it was watching with great concern and accused Washington of fuelling tensions over Ukraine, repeating its line that the crisis was being driven by U.S. and NATO actions rather than by its own build-up of forces near the Ukrainian border.
West differs in opinion
As Western leaders appeal for unity, differences have emerged among European nations over how best to respond. Putin is due to meet Wednesday with the heads of some of the biggest companies in Italy, Russia's fifth biggest trading partner, despite the rising tensions.
"It is absolutely vital that... the West is united now, because it is our unity now that will be much more effective in deterring any Russian aggression," British Prime Minister Boris Johnson said, adding Britain was discussing with the United States the possibility of banning Russia from the SWIFT global payments system.
French President Emmanuel Macron said he would seek clarification over Russia's intentions in a phone call with Putin set for Friday. Political advisers from Russia, Ukraine, Germany and France are due to meet in Paris on Wednesday.
An escalated conflict would likely further increase energy costs for many countries, keeping headline inflation rates elevated for longer, said Gita Gopinath, first deputy managing director of the International Monetary Fund.
-Reuters