26.08.2019, 08:12
Experts: US Sanctions Won't Harm Russia's Economy More Than Trade Wars
Source: OREANDA-NEWS
OREANDA-NEWS. The second package of US sanctions against Russia in the so-called Skripal case comes into effect, prohibiting American banks from participating in the primary market of Russian ruble denominated sovereign bonds, as well as issuing non-ruble loans to the Russian government. Experts interviewed by the Russian media believe that the new sanctions won't be able to do more harm to the Russian economy than the trade wars, in particular, the USA and China, and the volatility in the oil market.
We are talking about new U.S. sanctions, which are attributed to Russia attributed to the poisoning of ex-State Intelligence Agency employee Sergei Skripal and his daughter Julia in March 2018 in Salisbury. They include Washington’s opposition to the provision of loans, financial or technical assistance to Russia by international financial institutions such as the World Bank or the International Monetary Fund, as well as restricting the export of certain goods and technologies.
The actual entry into force of the sanctions won't entail consequences for the Russian economy, since market participants laid down this factor at the stage of their announcement, and the volume of Russian foreign currency debt is extremely insignificant, analysts say. Much more significant consequences for Russia can be brought by a new round of trade confrontations and lower energy prices.
"The market has already laid down these factors in asset prices. Thus, the actual start of the new restrictions shouldn't have an additional effect", say economists at the American media. The introduction of new restrictive measures by the United States is fraught only with the threat that Russia remains under pressure from geopolitical tensions and in the foreseeable future, further sanctions can threaten the Russian market more than once, economists agree.
We are talking about new U.S. sanctions, which are attributed to Russia attributed to the poisoning of ex-State Intelligence Agency employee Sergei Skripal and his daughter Julia in March 2018 in Salisbury. They include Washington’s opposition to the provision of loans, financial or technical assistance to Russia by international financial institutions such as the World Bank or the International Monetary Fund, as well as restricting the export of certain goods and technologies.
The actual entry into force of the sanctions won't entail consequences for the Russian economy, since market participants laid down this factor at the stage of their announcement, and the volume of Russian foreign currency debt is extremely insignificant, analysts say. Much more significant consequences for Russia can be brought by a new round of trade confrontations and lower energy prices.
"The market has already laid down these factors in asset prices. Thus, the actual start of the new restrictions shouldn't have an additional effect", say economists at the American media. The introduction of new restrictive measures by the United States is fraught only with the threat that Russia remains under pressure from geopolitical tensions and in the foreseeable future, further sanctions can threaten the Russian market more than once, economists agree.
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