The US Congress “tired of sanctions” against Russia

Tough talk about the need to punish Russia for meddling in the 2016 U.S. election is running into the reality that Congress’s enthusiasm for additional sanctions is waning. “We face a little bit of sanctions fatigue around here these days,” said Republican Senator Marco Rubio of Florida, the sponsor of one of the bills aimed at Russia. “Hopefully we’ll get more people on board.”

Two main proposals are circulating aimed at increasing pressure on Russian individuals and companies by restricting their access to U.S. markets and capital. Both Senate bills received significant attention in 2018 after President Donald Trump failed to condemn Russia for its election meddling, but they lost steam after November’s midterm elections and aren’t moving any faster in this year’s Congress.

Many lawmakers still want Russia to face stronger consequences for its actions in the U.S. and elsewhere, but there’s no clear consensus on how to send the right message to the Kremlin. Two other factors add to the hesitation: concern about unintended economic consequences, and the difficulty of passing legislation in a divided Congress when the measures don’t have the president’s support.

Markets are closely watching the next U.S. moves on sanctions, since any action may affect Russia’s sovereign debt. The ruble has depreciated against the dollar since 2014, when the U.S. imposed sanctions on during the Obama administration. While senior lawmakers now express mixed feelings about what to do next, the upcoming release of portions of Special Counsel Robert Mueller’s investigation of the 2016 election and the Trump campaign could bring renewed attention to the sanctions bills.