4 FourFour Two: How to Stop the US Scars for China, by John Haltiwanger, FT, September 11, 2019, p. 12The US will announce on Wednesday that it will end economic sanctions on Beijing for its support for separatists in Ukraine.
The move will also bring the end of the annual summit of G20 finance ministers.
The announcement will bring the two sides to an agreement on measures to reduce the trade deficit between the two countries.
The sanctions were imposed on November 1, 2015, when Russia annexed Crimea and the separatists seized power in Ukraine’s eastern Donbass region.
They were introduced by US President Donald Trump, who had called Putin a “very smart cookie” in a phone call on September 8, 2018, to mark the 10th anniversary of the end the war in Chechnya, when Moscow-backed separatists overthrew a Russian-backed president.
The new sanctions are the result of a joint investigation by the US Treasury Department and the International Monetary Fund, and were intended to isolate Russia, which had been the main backer of the separatists.
The measures have been in place for a decade, but the new one came into force at the end in June, when Washington slapped sanctions on Russian banks and companies for allegedly supporting the separatist movement.
Russia has said the measures are intended to retaliate against a US decision to impose new sanctions on the country in response to the war.
The measures were announced following an emergency meeting of the Organisation for Security and Co-operation in Europe in Brussels.US Vice President Mike Pence will hold a press conference on Wednesday afternoon, according to Reuters news agency.
The US is the second-largest trading partner for Russia.
The two countries are negotiating a $1.7bn investment deal, which would create a new US subsidiary of Russia’s Rosneft state-owned oil company.
In a statement, the White House said that the measures would “make it harder for the Kremlin to exploit Ukraine for its own purposes, including in the gas market”.
“We are pleased that Russia has been held accountable for the illegal annexation of Crimea and its subsequent occupation of eastern Ukraine,” it added.