Bloomberg: "US Imminent Large-Scale Retaliatory Sanctions on Russia"

Russia reportedly conducted hacking attacks during last year's US presidential election
Sanctions on Russian individuals and entities and diplomat expulsions expected as retaliation

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Suhwan] The Joe Biden U.S. administration appears set to retaliate against Russia for attempting hacking attacks on U.S. companies and government agencies during last year's presidential election period.

On the 14th (local time), Bloomberg News, citing sources, reported that U.S. authorities are expected to impose sanctions on a total of 12 Russian individuals, including key government and intelligence officials, as well as more than 20 Russian entities. Bloomberg stated that these sanctions could be implemented as early as the 15th.

In addition, U.S. authorities are reportedly planning to expel up to 10 Russian individuals and diplomats from within the country.

The White House and the State Department did not issue any comments regarding Bloomberg's report on the day.

The possibility of these sanctions comes after a U.S. intelligence report was released, stating that the Russian government conducted cyberattacks to interfere in the election during last year's presidential campaign.

In December last year, the U.S. was subjected to a large-scale hacking attack by foreign forces, exposing over 18,000 institutions within the country to threats. The hacking was reportedly carried out by exploiting vulnerabilities in a type of network software called 'Solarwinds,' affecting U.S. government agencies using this software as well as more than 100 U.S. companies.

Subsequently, intelligence agencies identified the Russian government as behind the hacking attacks. Additionally, during the last presidential campaign period, the Russian government is known to have spread false information using social networking services (SNS).

Furthermore, as retaliation for the Russian government's hacking attacks, U.S. authorities are expected to impose sanctions on organizations linked to Russian intelligence agencies, which are also anticipated to be announced on the 15th, according to Bloomberg. There is speculation that the U.S. will designate the Russian Foreign Intelligence Service as the leading agency behind the Solarwinds hacking incident when implementing sanctions on the 15th.

Earlier, on the 13th, President Biden warned during a summit call with President Vladimir Putin that "the United States will protect its interests."

During the call, the two leaders reportedly discussed diplomatic issues between the two countries, including the possibility of holding a summit. Since Biden's inauguration, the prospect of a summit with Putin has raised hopes among investors for easing diplomatic tensions and mitigating risks from sanctions. However, with the likelihood of strong U.S. sanctions being implemented, market risks stemming from deteriorating diplomatic relations have resurfaced.

Bloomberg reported, "Following the sanctions to be implemented this week, additional measures targeting Russian bonds and others are expected to follow."