Black Pipper

Forex Dreamers

Bloomberg: the USA is considering the possibility of toughening old sanctions against Russia and introducing new ones

The Biden administration is assessing the impact of the new sanctions on Russia and is ready to tighten them if the Kremlin does not stop carrying out hacker attacks and interfering in the US political process, Bloomberg writes, citing informed sources.

In particular, Washington may prohibit American financial institutions from buying ruble bonds of Russian state banks in the secondary market.

The sanctions against Russia, which were announced on Thursday, have been carefully reconciled, the agency said. On the one hand, they punished Moscow for past misconduct, and on the other, they turned out to be not so tough as to further worsen relations between the two countries, the agency notes.

Also read  Investors bet billions on metals rally

The Biden administration is also looking at the reaction of global markets to gauge the impact of its sanctions actions, Bloomberg reported. In particular, Washington is monitoring the dynamics ruble and the share of non-residents in the Russian ruble bond market.

Another important indicator will be the decision of the Bank of Russia on the key rate and the dynamics of capital flow, sources told Bloomberg. According to one of them, the Biden administration sought to limit the damage that new sanctions against the Russian Federation could cause the United States and the global financial system, while at the same time protecting Russians from unnecessary harm. Now Washington hopes to begin de-escalating the conflict, which should have a positive impact on Russia’s financial markets and economy.

Also read  Goldman Sachs Expects Strongest Oil Demand Growth Ever

Despite this, the US has other potential sanctions in reserve, including a ban on trading any ruble bonds in the first 90 days after their placement, an anonymous source said.

Leave a Reply

Your email address will not be published. Required fields are marked *