White House: Biden warns Putin of strong escalation in Ukraine

LAST UPDATE 21:20

US President Joe Biden has warned his Russian counterpart Vladimir Putin that the United States and its allies will react with strong economic and other measures in the event of a military escalation in Ukraine, the White House said shortly after the two leaders’ teleconference.

At the same time, the US President expressed his deep concern and the concern of the US allies in Europe for the strengthening of the Russian military forces on the border with Ukraine.

He reiterated his support for Ukraine’s national sovereignty and territorial integrity and called for de-escalation and a return to diplomacy.

The two presidents have appointed their teams to further manage the issue, and the US government will do so in close cooperation with its allies and partners, the White House said in a statement.

The two leaders also discussed the US-Russia dialogue on so-called “strategic stability”, a separate dialogue on ransomware, and working together on regional issues such as Iran.

The talks between the two leaders – with the Russian president in Sochi and the US president in Washington – ended at around 19:10 Greek time, lasting more than two hours.

At the beginning of the talks, the two leaders exchanged greetings and the American president expressed hope for a face-to-face meeting with the Russian president.

The teleconference was organized using a protected video call line, intended for communication between the two leaders and used for the first time.

Banks in focus, closure of Nord Stream 2

According to Reuters, US officials had said before the conference call that Biden would tell Putin that Russia and Russian banks would be severely punished if he launched an attack on Ukraine.

A source said the sanctions would target Russia’s largest banks and Moscow’s ability to convert rubles into dollars and other currencies.

In the event of an attack on Ukraine, the possibility of President Putin’s inner circle being targeted has been discussed, without any decisions yet, a source told Reuters.

The US government has also considered limiting the ability of investors to buy Russian debt on the secondary market, a measure that is expected to have a huge impact even if it is adopted only by Washington.

CNN also reported that the sanctions could include Russia’s disconnection from the international SWIFT payment system used by banks worldwide.

Other government officials have told members of Congress that they have reached an agreement with Germany to close the Nord Stream 2 pipeline if Russia invades Ukraine.