WASHINGTON: US President Barack Obama has imposed a new set of strict economic sanctions against Russia over the Ukrainian dispute but rejected the suggestion that this is the start of a new cold war.

The additional sanctions target specific sectors of the Russian economy, including energy, weapons manufacturing and finance. The move blocks the export of specific goods and technologies related to the energy sector, and freezes the activities of banks and defence companies. The US is also suspending credit that finances economic development in Russia.

The move “is a reminder the US means what it says”, said Mr Obama as he announced the sanctions from the White House.

On Tuesday, the European Union announced similar sanctions on Russia, including an arms embargo and limits on access to European capital markets for Russian state-owned banks.

President Obama said the new sanctions were coordinated with the European Union and would have a “greater impact on the Russian economy” than those imposed earlier this summer.

The previous sanctions, however, have already cost Russia nearly $100 billion in lost capital. The Obama administration hopes the sanctions will persuade Moscow to stop backing Ukrainian separatists.

“These actions are designed to demonstrate the unity of the international community and the increasing isolation of Russia. We are prepared to take additional actions if Russia does not take steps to resolve this crisis,” said US Treasury Secretary Jacob J. Lew.

The US media have described the new sanctions as the West’s most serious response to the Russian involvement in the Ukrainian crisis.

Mr Obama said the new sanctions were a sign of “the waning patience Europe has with nice words from President (Vladimir) Putin that are not matched by actions”.

Meanwhile, senior US officials voiced growing alarm about a Russian troop build-up on the border with eastern Ukraine and a continued supply of heavy weaponry to the separatists.

But Mr Obama said this was not the beginning of a new cold war.

“It’s not a new Cold War. What it is, is a very specific issue related to Russia’s unwillingness to recognise that Ukraine can chart its own path,” he said.

Published in Dawn, August 1st, 2014