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30 Jul 2014
Focus on Russia following recent sanctions – Danske Bank
FXStreet (Edinburgh) - In the opinion of Anders Fischer, Analyst at Danske Bank, the geopolitical scenario remains in the spotlight.
Key Quotes
“The EU on Tuesday stepped up sanctions against Russia and pro-Moscow separatists in Ukraine, following the United States in imposing broad economic punitive measures”.
“These ‘phase three’ sanctions include an embargo on arms sales to Russia, a ban on exports of so-called dual-use goods such as computers or equipment that have both either civilian or military uses and efforts designed to cut off Russian banks from European capital markets”.
“The latter include a measure that would prevent Russia’s largest state-owned banks from issuing stocks or bonds in European markets”.
“Among the sanctions just announced, the capital restrictions are expected to have the most damaging effect on Russia”.
“Last week, the Russian central bank raised interest rates from 7.5% to 8%—the third hike this year—in its efforts to try to stem capital outflows”.
“With Russian banks and private companies already suffering from capital flight, the restrictions on Western capital will squeeze them even harder”.
Key Quotes
“The EU on Tuesday stepped up sanctions against Russia and pro-Moscow separatists in Ukraine, following the United States in imposing broad economic punitive measures”.
“These ‘phase three’ sanctions include an embargo on arms sales to Russia, a ban on exports of so-called dual-use goods such as computers or equipment that have both either civilian or military uses and efforts designed to cut off Russian banks from European capital markets”.
“The latter include a measure that would prevent Russia’s largest state-owned banks from issuing stocks or bonds in European markets”.
“Among the sanctions just announced, the capital restrictions are expected to have the most damaging effect on Russia”.
“Last week, the Russian central bank raised interest rates from 7.5% to 8%—the third hike this year—in its efforts to try to stem capital outflows”.
“With Russian banks and private companies already suffering from capital flight, the restrictions on Western capital will squeeze them even harder”.