|

US sanctions Russia over nerve agent attack - Bloomberg

As reported by Bloomberg, the US government has imposed trade sanctions on Russia in response to the chemical nerve agent attack that took place in the UK in March targeting former Russian double agent Sergei Skripal and his daughter.

Key quotes

"The sanctions are required under the 1991 Chemical and Biological Weapons Control and Warfare Elimination Act, which mandates punishment of countries that use chemical weapons in violation of international law. State Department officials said they expect them to take effect Aug. 22.

The sanctions, welcomed by the U.K., added to pressure on the ruble that began earlier in the day, when Russian media published the full text of a separate bill proposed by U.S. lawmakers that seeks “crushing sanctions” for election interference. The currency sank to its lowest level since November 2016.

The sanctions taking effect this month will limit exports to Russia of U.S. goods and technology considered sensitive on national security grounds, according to a State Department official who briefed reporters on condition of anonymity. The official said the action could block hundreds of millions of dollars in exports. Waivers will be allowed for space-flight activities and U.S. foreign assistance.

The additional sanctions also could be averted if President Donald Trump declared that waiving them would be in the U.S. national interest, a politically risky move in light of criticism that he’s been too soft on Russia on issues including interference in the 2016 presidential campaign.

The added sanctions could include a downgrading in diplomatic relations, blanket bans on the import of Russian oil and exports of “all other goods and technology” aside from agricultural products, as well as limits on loans from U.S. banks. The U.S. also would have to suspend aviation agreements and oppose any multilateral development bank assistance.

“The question is how severe these sanctions will be -- or at least the follow-up sanctions,” said Tim Ash, a senior emerging-market strategist at Bluebay Asset Management LLC in London. “I think there is little chance that Moscow will comply.” "

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.