The U.S. government called for more accurate timing of the introduction of new sanctions
The U.S. government called for more accurate timing of the introduction of new sanctions against Russia. According to the Minister of Finance Steven Mnuchin, that is to be expected in the next 30 days.
Likely, sanctions will be imposed before the presidential elections in Russia, which will be held on March 18. What they are is to say quite difficult. Americans seem to still believe that give a signal to Russian society, that is to vote “correctly”, i.e. not for Putin, and everything will work out. In General, Russians us care about sanctions. But the Kremlin, of course, will not leave a statement Mnuchin unattended and Sergei Glazyev, or Vladimir Zhirinovsky or someone else of the official Russian Patriotic opposition will return to the topic of a moratorium on payment to the Americans of Russia’s foreign debts.
Financial markets are beginning to realize that Western sanctions against Russia for a long time, if not forever. Of course, the Russian economy can be accused of stagnation and weak economic growth. However, it is much more stable than many thought four years ago. Russia stood not only sanctions, but also the fall in oil prices. In addition, one must keep in mind that sanctions against specific persons is unlikely to affect the business and financial performance of companies in which have got under sanctions of the people have a share. From our point of view, the reaction of the ruble and the stock market to new sanctions will be symbolic. Cold war Russia and the United States is already incorporated in prices.
So in conclusion, I would like to remind that today Russia’s international reserves of $454 billion may want to compare these figures with the Russian sovereign debt. Total volume of issued government debt is about $160 billion, including Eurobonds for $38 billion and domestic debt, primarily Federal loan bonds, $122 billion.
Russian public finances are in very good condition, cash exceeds liabilities by almost three times. However, the sovereign ratings of Russia are on the border of speculative and investment categories. This is probably due to the fact that the ratings of Russia expose the Americans. Do not forget that their game still plays the whole financial world.
The Director of analytical Department,