Experts have taken a positive view of U.S. sanctions
According to a recent meeting in Sochi, where the possibility of new U.S. sanctions against Russia was discussed, the country is ready to withstand the new restrictions. At the meeting, representatives of the Central Bank delivered a report stating that although the possible sanctions are unpleasant, they will not cause any particular difficulties for the Russian economy. The officials also hastened to assure that ordinary residents would not feel any restrictions, even if the sanctions were to affect the banking sector.
First Deputy Central Bank Sergei Shvetsov noted that these are not the first sanctions in the history of the state. Thus, there should be no particularly painful consequences, as it was in 2014. The meeting was also attended by the head of the Ministry of Energy, who confidently stated that the oil and gas industry will not suffer any negative consequences.
In addition, the officials in their reports provided a plan of action for business, in case the sanctions are still approved. And the head of Sberbank, Herman Gref, stressed that all industries are prepared even for the worst-case scenario.
What are the U.S. sanctions?
The Defense of American Security Act, or DASKAA, is a revised version of a similarly named bill that two senators introduced in August 2018, but which Congress never passed. DASKAA 2.0 is much more serious and nuanced than previous, hastily crafted congressional bills targeting Russia. The bill addresses restrictions on Russia’s banking and energy sectors. The U.S. also plans to sanction any new deals with Russia’s sovereign debt and individuals who “engage in corrupt activities” on behalf of the Russian leadership. It is also proposed to impose sanctions against oil development in Russia.
Experts argue that a particularly interesting nuance here is the limitation of oil production. After all, it is safe to say that it is aimed at Nord Stream-2, which is supposed to supply gas to Europe. And which is obviously not particularly happy with America’s actions. Already now we can see the fact that Germany has criticized the actions of the United States, as it has long supported the idea of a new gas pipeline. In addition, experts expect that Europe’s support will only increase.
Experts say that we should not expect particularly positive results from these sanctions. However, they also doubt that these restrictions will be introduced. For example, one of the points puts a spoke in the wheel of activity of American businessmen on the territory of Russia, which does not play into the hands of America as well.
Already now you can see how the market is falling after the latest news about the possible sanctions. The Russian stock market at the beginning of the day was down 1-2 points on major indices. The ruble has so far reacted rather sluggishly to the sanctions. But analysts are confident that Russia will be quite resilient to the new restrictions, as it has experience from 2014.