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Obama, Merkel Warn Russia on Ukraine

by VOA News May 02, 2014

If Moscow continues fueling unrest in Ukraine, Russian President Vladimir Putin and others in his leadership circle will face increasingly broad sanctions, U.S. President Barack Obama warned on Friday.

And any Russian attempts to interfere with Ukraine's May 25 election would prompt new pressure on Russia's energy sector, the president said.

Appearing with German Chancellor Angela Merkel at a joint news conference in the White House Rose Garden, Obama praised her for being a strong partner on Ukraine.

The two nations, he said, "are united in our unwavering support for Ukraine."

Both leaders said they want to see a diplomatic resolution to the crisis. Otherwise, Putin and others involved in destabilizing Ukraine "will face increasing costs as well as growing isolation," Obama said.

Sanctions, imposed in March after Russia annexed Crimea, were expanded April 28. They include visa bans and the freezing of any U.S. assets for nearly 50 political and business allies of Putin.

Obama also urged Moscow to press pro-Russia militantary groups to free the seven military observers taken hostage last weekend. Continued detention of the seven, from the Organization for Security and Cooperation in Europe, is 'disgraceful' and 'inexcusable,' Obama said.

During meetings Friday, the two leaders were to discuss the National Security Agency's spy program, which targeted Merkel's phone conversations and caused tension between the two allies. Since then, 'we've tried to reform what we do,' Obama said at the news conference, emphasizing the continued need to balance privacy and security concerns.

Some of Germany's largest businesses have voiced strong opposition to broader sanctions, The Wall Street Journal reported Friday.

They include Deutsche Bank, Volkswagen, Adidas, chemical giant BASF and engineering and electronics conglomerate Siemens, all with operations in Russia.

As the crisis in Ukraine has escalated, Merkel has spoken with Putin perhaps more frequently than any other European leader.

The United States sees her as a critical channel of communication with the unpredictable Russian leader, and a key player in preventing other European Union members from relaxing sanctions.

Merkel called for support of the proposed Trans-Atlantic Trade and Investment Partnership, which would ease trade restrictions between the U.S. and the EU.

'We are firmly convinced this offers a lot of opportunities' to trade partners, Merkel said.

She was scheduled to address the U.S. Chamber of Commerce on Friday afternoon concerning the strength of the German-American relationship and trans-Atlantic trade.

Reuters contributed to this report.