US multinationals are pressuring Biden to avoid sanctions against Russia.

WASHINGTON (Reuters) - US President Joe Biden has threatened to impose devastating sanctions on Russia if leader Vladimir Putin invades Ukraine, but some large corporations and business groups are pressing the White House and lawmakers to be cautious.

A trade group representing Chevron, General Electric, and other major U.S. corporations doing business in Russia is urging the White House to consider allowing the companies to meet their commitments and assess product exemptions when drafting any sanctions. At the same time, major energy companies are lobbying Congress to limit their scope and timing.

The Biden administration and Congress need to "work out the details if they need to follow through on the threat of sanctions," Jake Colvin, president of the National Foreign Trade Council, told Reuters on Monday.

“These details should include consideration of safe harbors or settlement periods to allow companies to fulfill existing contracts and obligations, as well as the exclusion of life-saving medications and other humanitarian considerations consistent with long-standing U.S. policy,” Colvin said.

Energy companies have also contacted U.S. lawmakers directly to push for a "cooling-off" or "relaxation" period so that their assets are not confiscated if they cannot fulfill trade agreements in Russia, a congressional aide told Reuters.

The American Petroleum Institute, the largest U.S. lobbying organization for oil and gas drillers, discussed sanctions against Russia with congressional offices. "The sanctions should be as targeted as possible to limit potential harm to the competitiveness of U.S. companies," said an API spokesperson.

Export sanctions are generally implemented gradually, giving companies time to shut down existing businesses or ensure deliveries arrive, said William Reinsch, a former senior official at the U.S. Department of Commerce.

But in this case, the sanctions will likely be applied suddenly, in the midst of a crisis, making it more difficult to guarantee a more challenging "reduction" period, he said.

The U.S. Treasury has previously provided some measures to mitigate financial sanctions, such as granting licenses that protect senders of humanitarian aid and personal remittance flows to Afghanistan, despite sanctions against the ruling Taliban.

A U.S. Treasury official declined to comment on such measures in relation to possible sanctions against Russia, but added: "We are prepared to deliver severe costs to the Russian economy, minimizing unintended spillover."