Research Russia: The West walks the talk with unprecedented sanctions against Russia, what's next?
- Fighting continues on multiple fronts in Ukraine. Kyiv has not fallen. The West has stepped up their military support to Ukraine and as a response Russia has put their nuclear defences on alert. Ukraine and Russia leaders have agreed to meet at the Belarus border but the exact time of the meeting has not been confirmed.z
- Over the weekend, the US and the EU along with other Western states, expanded and stepped up their sanctions against Russia, including an exclusion of some Russian financial institutions from SWIFT and freezing central bank assets.
- We think the newly announced sanctions will weigh heavily on the Russian economy, on its financial sector, on RUB-linked assets and put upward pressure on commodity prices. Investors and businesses should brace themselves for a period of protracted uncertainty and elevated market volatility.
Author
Danske Research Team
Danske Bank A/S
Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.
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