AP’s Matt Lee Says Sanctions Exemption List Is “Frankly Huge”; Psaki Lectures on “How Diplomacy Works” as Kiev Faces Fall

On 2/25/2022, as Russian forces advanced toward Kiev, AP’s Matt Lee grilled State Department spokesman Ned Price over the sanctions’ massive exemption list, calling it “frankly huge” and questioning whether anything meaningful had actually been restricted. Psaki lectured Doocy on “how diplomacy works” when challenged on the sanctions’ effectiveness, refused to say whether personal sanctions on Putin would impact his wealth, and left the door open to Iranian oil if the nuclear deal was completed.

”The List of Exemptions Is Frankly Huge”

Matt Lee delivered one of his sharpest exchanges with Price, methodically dismantling the administration’s claim of “suspending bilateral engagement” with Russia. Lee pointed out that the exemptions covered virtually every area of substantive interaction.

“Instead of asking you what is exempted — because I’ve seen the list of exemptions and it’s frankly huge — can you give us an example of the kinds of talks that now are no longer going to take place?” Lee asked.

“You’re asking me to—” Price began.

“Are we talking about cultural exchanges, or what?” Lee pressed. “Because if you look at the list of stuff that’s exempted, you start with the JCPOA, you go to climate, you go to COVID, you go to anything having to do with consular affairs. You go to anything that the seventh floor thinks is significant enough, which could be anything.”

Lee continued: “Every international organization — you know, contact with the Russians at every international organization is carved out. It’s exempted from this. From the ICAO to the Arctic Council to the OSCE.”

“So what has been banned or halted because of this directive?” Lee asked. “Because it just seems like almost everything one can imagine — except for, I don’t know, licensing for artwork to come to be loaned to a museum.”

Price fell back on vague language. “We are going to pursue what is in our national security interests, to those core national security interests. I will leave it to your well-informed imagination what might not meet that criteria."

"Let Me Explain How Diplomacy Works”

Doocy asked Psaki what the administration had done during the “slow-moving Russia crisis” that had actually worked. “The President talked to Putin. He talked to the G7. He threatened sanctions. He put sanctions in place. Now he says the sanctions are going to take 30 days or about a month,” Doocy said. “Do you guys think the people in Ukraine have about a month?”

Psaki’s response was to lecture. “Let me just take a step back and explain to everyone how diplomacy works and how our approach from the United States has worked,” she said. “The President has built a global coalition. It is our choice and our responsibility to rally opposition and make sure they feel significant pain from that choice.”

Doocy pressed: “What good does that do these people in Ukraine who are seeing the news and these U.S. intel assessments that Kiev is going to fall any day?”

“We are the largest provider of humanitarian assistance, of security assistance in the world,” Psaki said. “What he will not do is send U.S. troops to fight in Ukraine.”

Won’t Say If Sanctions Impact Putin’s Wealth

A reporter asked whether the newly announced personal sanctions on Putin would actually affect his finances. “Without getting into details, can you even say if this will or will not impact him?” the reporter asked.

“I’m just not going to get into specifics about his financial assets from here. That’s typically not something we would do,” Psaki said.

”Sit on the Same Side of the Table”

Doocy highlighted a striking contradiction. “You guys will sit here and sanction Vladimir Putin and then send diplomats to go sit on the same side of the table with the Russians to hash out the Iran deal. Is that what’s happening?” he asked.

“That’s right, Peter, but I don’t know why you sound so skeptical,” Psaki replied. “What our job here in the United States and from any government is to take steps that are in the interests of the American people.”

Iranian Oil on the Table

A reporter asked whether Biden would “welcome” Iranian oil coming to the U.S. if the nuclear deal was completed. “We’re not quite at the point of a final deal on the nuclear deal, so we will talk about that if we get to that point,” Psaki said — notably not ruling it out.

Zelensky: “Left Alone”

When asked about Ukrainian President Zelensky’s video address saying Ukraine had been “left alone to defend itself against Russia,” Psaki pushed back. “We are providing — again, the largest provider of security, economic, humanitarian assistance of any country in the world,” she said.

Key Takeaways

AP’s Matt Lee called the Russia sanctions exemption list “frankly huge,” noting it covered the JCPOA, climate, COVID, consular affairs, and every international organization — leaving almost nothing actually restricted.
Psaki lectured reporters on “how diplomacy works” when challenged on sanctions effectiveness as Kiev faced imminent fall.
She refused to say whether personal sanctions on Putin would impact his wealth: “I’m not going to get into his financial assets.”
The administration confirmed it would sanction Putin while simultaneously negotiating with Russia on the Iran nuclear deal at the same table.
Psaki left the door open to Iranian oil, saying “we’ll talk about that if we get to that point.”

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

I’ve seen the list of exemptions and it’s frankly huge. Can you give us an example of what’s actually been banned? I will leave it to your well-informed imagination.
Let me take a step back and explain to everyone how diplomacy works.
What good does that do the people in Ukraine who are seeing that Kiev is going to fall any day?
You’ll sanction Putin and then send diplomats to sit with Russians to hash out the Iran deal. Is that what’s happening? That’s right, Peter.
Can you even say if this will impact Putin? I’m not going to get into his financial assets.
Would the President welcome Iranian oil? We’ll talk about that if we get to that point.

Full transcript: 1398 words transcribed via Whisper AI.