Russia: Have options to hurt US economically if Washington continues sanctions spiral

Eren Sengezer FXStreet

Russia's foreign ministry announced on Friday that they will be expelling US diplomats proportionally to the US' decision to expel Russian diplomats, as reported by Reuters.

Additional takeaways

"Will reduce the number of short-term visas issued to US diplomats."

"We understand that we are limited in ability to cause economic damage to US."

"Will ban US embassy in Russia from hiring citizens of Russia and third countries."

"We would like to avoid further escalation with Washington."

"We are ready for dialogue with US to find ways to normalise relations."

"Eight high-ranking serving and former US officials responsible for Washington's anti-Russian course will be banned from Russia."

"We stand ready to cut US diplomatic presence in Russia to 300 people if Washington doesn't change course."

"Have options to hurt the US economically if Washington wants to continue a sanctions spiral."

Market reaction

This development doesn't seem to be weighing on market sentiment. As of writing, the S&P 500 Index was up 0.18% on the day at 4,177.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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