by Michael R. Gordon, Dustin Volz and Vivian Salama
The Biden administration will impose a range of retaliatory measures against Russia on Thursday in response to Moscow’s alleged election interference, a widespread hacking campaign and other malign activity, according to people familiar with the matter.
Using a new executive order, the measure will expand the existing prohibitions on U.S. banks trading in Russian government debt, two of the people said. Previous prohibitions targeting portions of Russian sovereign debt shook Russia’s markets and added to its economic woes.
That order prohibits U.S. financial institutions from buying new bonds directly from Russia’s central bank, finance ministry and the country’s massive sovereign-wealth fund after June 14.
Among other measures, 10 Russian diplomats will be expelled, including some due to allegations that Russia offered to pay bounties to militants in Afghanistan to kill U.S. military service members, the people said. Sanctions will be imposed for Russia’s cyber intrusions, election meddling and occupation of Crimea.
The penalties follow escalating tensions between Western allies and Russia. A Russian flag flies next to the U.S. embassy building in Moscow.
PHOTO: YURI KADOBNOV/AGENCE FRANCE-PRESSE/GETTY IMAGES
Russia’s foreign-intelligence service, the SVR, will be formally accused of carrying out the so-called SolarWinds hack of U.S. government and corporate computer systems. Collectively, the actions are meant to punish Moscow while also deterring the Kremlin from further provocations.
The penalties follow escalating tensions between Western allies and Russia as Moscow masses troops on its border with Ukraine in numbers not seen since just before its invasion of Crimea in 2014. Russia has also failed to heed warnings against election interference and other malicious activities, the people said.
President Biden spoke with Russian President Vladimir Putin on Tuesday to register U.S. complaints about Moscow’s cyber intrusion, election intervention, and activities in Ukraine. The White House said Mr. Biden extended a personal invitation to his Russian counterpart to meet in the coming months, to address some of the issues face to face.
Russia has yet to accept the summit invitation and is likely to respond to the U.S. actions with some of their own.
Thursday’s actions will also designate a half dozen Russian companies as working to support Russia’s cyber operations, and designate more than 30 individuals and entities for interfering in U.S. elections, people familiar with the measures said…