Putin Warns Sanctions Effects Will be Collateral

Russian President Vladimir Putin warned on Wednesday that U.S. sanctions will take relations with Russia to a “dead end” and damage U.S. business interests in his country.

“Sanctions have a boomerang effect and without any doubt they will push U.S.-Russian relations into a dead end, and cause very serious damage,” he said to reporters on a visit to Brazil.

The U.S. government on Wednesday, because of what it views as Russia’s interference in Ukraine, imposed its most wide-ranging sanctions yet, on key players in the country’s economy, including Gazprombank and Rosneft Oil Co, and other major banks and energy and defense companies.

Putin said he needed to see the details of the sanctions to understand their full scope. But he added that he was sure the sanctions would damage the national interests of the United States in the long run.

“This means that U.S. companies willing to work in Russia will lose their competitiveness next to other global energy companies,” he said.

Putin said the sanctions will hurt Exxon Mobil which has been given the opportunity to operate in Russia.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza