MRP’s recent DIBs report on Russia gave an overview of the latest sanctions imposed by the U.S., and what that meant for Russia’s economy in general. Today’s report dives a little deeper into the rationale of the sanctions and highlights sectors that are getting impacted.
As noted last week, Russia’s economic star has been on the rise and the country is finally enjoying a period of macroeconomic stability and growth, after emerging from a painful recession. If the intent had been to put pressure on the Russian economy, officials in Washington would have directly imposed sanctions on institutions such as Gazprom, Lukoil and Rosneft in the all-important oil & gas sector, or Sberbank, the nation’s largest bank.
But, the U.S. chose not to exercise the “nuclear option” -– at least for now –- preferring instead to go after oligarchs in Putin’s inner circle and their business empires as well. In doing so, the U.S. treasury highlighted the extent to which Russian banks, companies, oligarchs and officials are exposed to the dollar and the might of U.S. economic warfare . . .