US to ban investment, trade in Ukraine's breakaway regions: White House

By Servet Gunerigok

WASHINGTON (AA) - US President Joe Biden will sign an executive order barring new investment, trade, and financing to, from, or in Ukraine's breakaway Donetsk and Luhansk regions, said the White House on Monday, after Russia formally recognized them as independent states.

In a statement, press secretary Jen Psaki said the US had anticipated "a move like this" from Moscow and vowed to respond immediately to Monday’s announcement by Russian President Vladimir Putin.

"President Biden will soon issue an Executive Order that will prohibit new investment, trade, and financing by U.S. persons to, from, or in the so-called DNR and LNR regions of Ukraine," said Psaki, referring to the self-declared “Donetsk People's Republic” and “Luhansk People's Republic.”

She said the executive order will also provide authority to impose sanctions on any person determined to operate in those areas of Ukraine, which both lie along the country’s border with Russia.

"The Departments of State and Treasury will have additional details shortly. We will also soon announce additional measures related to today’s blatant violation of Russia’s international commitments," she added.

Earlier, top EU top officials condemned Russia’s recognition, calling the move a "blatant violation of international law."

In a joint statement, European Council President Charles Michel and European Commission head Ursula von der Leyen said the EU "will react with sanctions against those involved in this illegal act."

- Rising tensions

Putin announced the recognition in a speech Monday that also attacked Ukraine’s government and the US and accused the West of ignoring Moscow's core security concerns.

Along with Russia’s military buildup, tensions have recently risen dramatically in eastern Ukraine, with reports of a growing number of cease-fire violations, multiple shelling incidents, and evacuation of civilians from the pro-Russian separatist regions of Donetsk and Luhansk.

The US, with its European allies, has said Russia is setting the stage to invade Ukraine after having amassed over 100,000 troops and heavy equipment in and around its neighbor.

Russia has denied it is preparing to invade and instead accuses Western countries of undermining its security through NATO’s expansion towards its borders.

In 2014, Moscow began to support separatist forces in eastern Ukraine against the central government, a policy that it has maintained for the past seven years. The conflict has taken more than 13,000 lives, according to the UN.