Only slim chances for tougher US sanctions against Russia – Commerzbank

FXStreet Insights Team FXStreet

In order to reduce Russian Oil exports permanently, the most important buyers of Russian Oil would have to be deterred from making further purchases, Commerzbank's commodity analyst Carsten Fritsch notes.

NATO member Turkey unlikely to stop buying Russian Oil

"One way to achieve this would be to impose sanctions or secondary tariffs. Over the weekend, US President Trump suggested major sanctions against Russia if all NATO countries did the same and stopped buying Russian Oil."

"It is unlikely that this will happen in the short term. In a recent speech, EU Commission President von der Leyen rejected the idea of secondary tariffs as a means of political pressure. These are therefore unlikely to be included in the EU's 19th package of sanctions against Russia, which is currently being discussed."

"It is also unlikely that NATO member Turkey will voluntarily stop buying Russian Oil. As things stand, there is little to suggest that US sanctions will be tightened."

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