US Remains Firm on Sanctions Amid Russia's Looming Recession; IMF 'Highly Unlikely' To Help

Russia's economic crisis will not stop the United States from putting financial pressure on Russian President Vladimir Putin. The Obama administration remains firm in its decision to maintain sanctions amid expectations that Russia's economy will face recession in 2015.

According to Bloomberg, White House officials said Russia's spiraling economy only demonstrates the effectiveness of sanctions imposed by the U.S. and EU to force Mr Putin to pull out Russian troops from Ukraine. Josh Earnest, a spokesman for Mr Obama, said it is the same effect as the sanctions against Iran which forced ISIS to negotiate over its nuclear programme.

Earnest added that Mr Putin may need to make a decision as the aim of the sanctions is to force Russia to stop meddling in Ukriane. Mr Obama was briefed on recent developments in Russia's currency woes. An administration official revealed this detail but asked not be named since the meeting with the White House senior staff meeting was classified.

Russia's economy is struggling with plunging oil prices and damaging sanctions imposed by the U.S. and the EU. The 49 percent drop in oil prices along with Western sanctions has led to Russia's worst economic crisis since 1998. Citizens are scrambling to convert local currency to U.S. dollars and purchase goods due to fear of rising inflation and a potential plan of government to control the currency, the Wall Street Journal reported.

White House Council of Economic Advisers Chairman Jason Furman had previously described the economy of Russia as on the "brink of crisis." The U.S. government is waiting for Mr Putin's response on the sanctions. The Russian president has to decide whether he will meet the demands of the West to pull back from Ukraine or take a more aggressive stance to boost his political status and push back against Mr Obama.

Earnest also revealed that Mr Obama will sign a bill that Congress had passed last week that will authorise the U.S. to apply more sanctions on Russia and provide weapons to the Ukraine government. Russia cannot expect assistance from the International Monetary Fund unless Mr Putin decides to pull out of Ukraine. Domenico Lombardi, former IMF board official and now head of the global economy progamme at the Centre for International Governance Innovation in Ontario, believed it would be "highly unlikely" for the IMF to do anything about Russia's situation.