Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

US May Rely on Indirect Sanctions to Cause Russian Markets Collapse
April 18, 2014 17:03

Photo Credit:
US has warned mutual fund and hedge fund managers of possible further sanctions against Russia. At a closed meeting in Washington a week ago, administration officials spoke of the risks of exposure to the Russian equity or debt markets.
The investor who leaked the news to the press was uncertain whether the administration was serious about its intentions or simply wanted to stage a massive sell-off of Russian securities.
The meeting could be a signal that Washington was seeking to impose indirect costs on the Russian economy. “The biggest weapon in terms of sanctions would be similar sanctions to what we did in Iran and basically try to exclude Russia from international financial markets,” William Pomeranz, deputy director of the Kennan Institute for Advanced Russian Studies of the Woodrow Wilson Center in Washington told the Business Insider. “The Russians fear that, and that is what the Russians want to avoid.”
Amid uncertainty, investors have been selling Russian securities, prompting a 7.3 percent slump of the currency against the dollar.
Earlier, Russia-IC reported that the US could use oil prices as a powerful tool to punish Russia. Some American billionaires like George Soros have called on the Obama administration to tap into its strategic petroleum reserve to cause a slide in oil prices.
A dip by at least $12 a barrel could cost Russia about $40 billion in lost income from oil and gas sales, equivalent to 2 percent of its economy.

Many experts, however, have rebuffed the calls to attempt to lower the prices by selling emergency reserves. “If you use oil and aim it at Russia, you’ll hit Texas,” Bloomberg quoted Kevin Book, managing director of ClearView Energy Partners LLC, a Washington-based consultant, as saying. Many of the US oil producers don’t have too big a margin to endure its drop, the expert went on to say. 

Author: Mikhail Vesely

Tags: Ukraine crisis Crimea US sanctions   

Next Previous

You might also find interesting:

Investors from Arab Countries will be Invited to Participate in Russian National Projects Russia Increases Trade With Brazil Foreign terms to have Russian equivalents Russia Transferred 78 Million Dollars to the UN Forbes Rating Of the Largest Companies Includes 27 Russian Corporations

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Russian spacecrafts  US sanctions  Aladdin Garunov  Olympic Games 2012  Russian tourism  Defence Ministry  Russian circus  Chukotka  Cosmodrome Vostochny  Kolomenskoye  Life Saving  UArctic Congress  Russian regions  Konstantin Tsiolkovsky  VTB  Festivals in Moscow  Gorky Park  Russian reporters  travel to Russia  Russian business  Konstantin Altunin  Rostov  Exhibitions in Moscow  Tikhoretsk  Krasnodar region  Russian Cinema  Sochi Olympics  Svetlana Shkolina  Lyudmila Gurchenko  Danny DeVito  Alexander Lebedev  Sochi 2014 Paralympic Games  Street Art  Moscow Kremlin   Video Games  Neural Network  St. Petersburg  Mercedes-Benz Fashion Week Russia  International Passport  freedom of press in Russia  Installations  Hermitage Museum  Russian fashion designer  Russian actors  Japanese Art  Russian students  Exhibitions in Moscow  Moscow  public transport in Yekaterinburg  aircraft 

Travel Blogs
Top Traveling Sites