Russia Could Push Beyond Ukraine

A massive show of force by the Russian military on the anniversary of its disputed annexation of Crimea has raised questions about Moscow’s defiance over eastern Ukraine, and led to concerns that President Putin could be seeking more “foreign distractions.”

With rising domestic problems in Russia and the prospect of more sanctions looming, the likelihood of further foreign “provocations” by Russian President Vladimir Putin have increased, according to a closely-watched political analyst.

“Rising domestic socioeconomic stresses in Russia – caused by dwindling oil revenues and the impact of Western sanctions – will fuel President Putin’s anti-western rhetoric and increase the likelihood of him seeking foreign ‘distractions’,” Alastair Newton, senior political analyst at Nomura, said in a note Wednesday.

“We therefore expect Russian provocations in its ‘near abroad’ to continue, including in NATO territory, short of an outright ‘land grab’.”

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