What the 2021 US sanctions on Russia targeted

What did Washington actually target when it moved against Russia on 15 April 2021, and why does it matter for the economy? This retrospective looks at the measures as they stood on 16 April 2021, the day after they were announced.

A ban on new sovereign debt

The most economically significant step was a ban on trade in bonds newly issued by Russia's Central Bank, National Wealth Fund and Ministry of Finance. The measure applied to new issuance, not to existing debt. It was accompanied by the blacklisting of 32 Russian entities and individuals and the expulsion of ten Russian diplomats.

The stated reasons

The United States tied the measures to three matters: the 2020 federal government data breach, interference in the 2020 US elections, and the occupation of and human rights abuses in Crimea. It formally named the Russian Foreign Intelligence Service as responsible for the data breach. Russia denied the allegations.

The breach was later described as among the worst cyber-espionage incidents suffered by the United States. Within days of its discovery, at least 200 organisations worldwide had been reported as affected. In March 2021, a US intelligence community analysis found that proxies of Russian intelligence had promoted misleading narratives about Joe Biden.

Moscow's answer

Russia's Ministry of Foreign Affairs summoned the US ambassador and told him that a series of retaliatory measures would follow soon. A ministry spokesperson also said that a potential summit between the two countries' leaders might not take place.

What to watch

As of 16 April 2021, the sanctions combined a financial restriction with diplomatic and security penalties, and Moscow had signalled retaliation and cast doubt on a leaders' summit. For Kyiv and the wider region, the open questions were the form of Russia's response and the fate of the proposed summit.