The Treasury Department announced Tuesday that it was adding 38 pro-Russian individuals and entities to existing sanctions against Russia.
Russia has condemned the new round of U.S. sanctions as a "continuation of the trend set by the Obama administration aimed at ruining relations between our countries" and has promptly canceled a scheduled meeting of senior Russian and American diplomats. "The absurdity of such actions can only be compared with a decision to add the Chaika swimming pool in Moscow to the USA sanctions lists a year ago (apparently, the pretext at that time was the swimming pool's location - next to Krymsky (Crimean) Bridge across the Moskva River)".
Under Secretary of State Thomas Shannon had been scheduled to fly to St. Petersburg this week to discuss what the two sides call "irritants" in the relationship.
The new sanctions imposed by the United States against Russia over the situation in Ukraine are a "political gift" to Ukraine's President Petro Poroshenko, Russian Deputy Foreign Minister Sergei Ryabkov said.
Tass news agency quoted Russian Presidential Spokesman Dmitry Peskov as saying on Wednesday that the country was now considering possible retaliatory measures against the USA move.
U.S. State Department spokeswoman Heather Nauert says the U.S. remains open to discussions with Russian Federation despite its decision to cancel talks between Russia's deputy foreign minister and the No. 3 U.S. diplomat.
"The current situation does not allow such a dialogue, especially as there is no content for it, since Washington has neither offered nor is offering anything concrete in this area", Ryabkov said in a statement on the website of the Russian Foreign Ministry.
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Treasury Secretary Steven Mnuchin said that the penalties are created to "maintain pressure on Russian Federation to work toward a diplomatic solution".
Russian President Vladimir Putin said USA sanctions were used only as a pretext to "contain Russia". On Sunday, the USA military shot down a Syrian military jet.
The State Department on Wednesday defended the Trump administration's decision to expand USA sanctions against Russian Federation, after the country's deputy foreign minister abruptly called off a meeting with a top US diplomat. In Congress, House allies of Trump have stalled a Senate bill that would intensify sanctions further and take the power to lift them out of his hands.
Sanctions is Washington's response to Russia's occupation and annexation of Ukrainian Crimea.
"Let's remember that these sanctions didn't just come out of nowhere", she said.
She says the sanctions will remain until Russian Federation honors its agreements related to Ukraine and stops occupying Crimea.
Peskov said experts were working on various models regarding possible counter sanctions.
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