The latest round of sanctions is intended to tighten the screws on Russia by targeting broad sections of its economy and financial markets. So far, the U.S. and Europe have limited those targets to influential government officials—so-called phase two sanctions.
The latest “phase three” sanctions target key specific sectors of Russia’s economy from the defense industry to the banking sector. Those 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 moves announced Tuesday further increase the risk that Russia raises the stakes in its widening economic and trade war with the West.
And both the European and Russian economies can ill afford any trade slowdown.
With an economy roughly the size of Italy’s, Russia will feel the pain more intensely. Existing sanctions have all but wiped out growth in gross domestic product this year; the latest round is expected to throw the Russian economy sharply into reverse.
via CNBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.