Contractee will become an additional obstacle to the growth of the Russian economy
Russian authorities are preparing a response to US sanctions in the style of its previous steps. Worst of all, in my opinion, these measures (a ban on products/x from USA, stop, cooperation and restrictions on the operation of companies and employees) only further increase the isolation of Russia from the rest of the world. This plan is just an additional blow to the economy on top of the initial sanctions.
These measures are proinflationary, that is, will spur the growth of prices in Russia. In addition, violation of the usual cycle of companies face the additional shock to the business, which may impair the performance of the economy in the coming months.
The result – both news this and last week have the same effect for the ruble nudging it to weaken. After the recent reports about the impending response to the sanctions USDRUB turned to growth, now trading at 61.86, up 70 cents above the lows of the day.