US likely to impose new sanctions on Russia as soon as Thursday – Reuters

Dhwani Mehta FXStreet

The US is set to impose sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity, Reuters reports, citing people familiar with the matter.

Additional takeaways (via Wall Street Journal)

“The Biden administration will impose a range of retaliatory measures against Russia on Thursday.”

“Using a new executive order, the measure will expand the existing prohibitions on U.S. banks trading in Russian government debt, two of the people said.“

“Previous prohibitions targeting portions of Russian sovereign debt shook Russia's markets and added to its economic woes.”

“That order prohibits U.S. financial institutions from buying new bonds directly from Russia's central bank, finance ministry and the country's massive sovereign wealth fund after June 14.”

Market reaction

With the potential US sanctions on Russia that could target the latter’s sovereign debt, the investors have turned risk-averse in Asia.

The S&P 500 futures have stalled the upside, consolidating gains around 4,120 while the US dollar has picked up bids and bounces towards 91.70, at the press time.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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