Russian PM labels fresh US sanctions 'economic war'

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Russian Prime Minister Dmitry Medvedev labelled new US sanctions "economic war", as businesses in Moscow pledged Thursday to shrug off the impact of the measures approved reluctantly by Donald Trump.

The US president signed off on the new sanctions Wednesday, bowing to domestic pressure after the White House failed to scupper the bill or water it down.

Expecting the move, Moscow already responded to the measures last week after they were passed by the Senate, ordering the US to slash staff at its diplomatic mission in Russia by 755 personnel.

August 2, 2017, White House: Donald Trump reluctantly signs a bill slapping new sanctions on Russia into law. /AFP Photo

The Kremlin said Trump's formal approval did not "change anything" and no further retaliation was planned. But Prime Minister Medvedev fumed on Wednesday evening on Facebook that the move "ends hopes for improving our relations with the new US administration."

"It is a declaration of a full-fledged economic war on Russia," Medvedev wrote. "The Trump administration has shown its total weakness by handing over executive power to the Congress in the most humiliating way."

Trump attacks 'flawed' legislation

Trump signed the legislation behind closed doors and then bashed it in an angry statement as "significantly flawed."

"In its haste to pass this legislation, the Congress included a number of clearly unconstitutional provisions," he said, including curbs on the president's ability to "negotiate" with Russia.

Donald Trump signed legislation placing fresh sanctions on Russia, and immediately called it "flawed." /AFP Photo

"As president, I can make far better deals with foreign countries than Congress," Trump claimed.

The legislation – which also includes measures against the DPRK and Iran – targets the Russian energy sector, giving Washington the ability to impose sanctions on companies involved in developing Russian pipelines, and placing curbs on some Russian weapons exporters.

It constrains Trump's ability to waive the penalties – a statement of mistrust from the Republican-controlled Congress, which remains unsettled by the billionaire's warm words for President Vladimir Putin.

Tillerson to meet Lavrov

US Secretary of State Rex Tillerson said he will meet with his Russian counterpart Foreign Minister Sergei Lavrov over the weekend, but warned US-Russia ties could still get worse.

US Secretary of State Rex Tillerson will meet with his Russian counterpart Foreign Minister Sergei Lavrov this weekend. /AFP Photo

Tillerson said the US Congress' decision to pass the sanctions bill had made attempts to thaw ties "more difficult."

A special prosecutor is investigating whether Trump advisers colluded with what US intelligence has concluded was an attempt by Russia to covertly support the real estate mogul's 2016 campaign.

The US president, who often called for warmer ties with Moscow during the White House race, has furiously denied the charge.

(Source: AFP)

Opinion: Sanctions may ironically lead to US-EU rift