28 Jul 2014
Further sanctions against Russia are looming – Danske Bank
FXStreet (Edinburgh) - Further sanctions against Russia by the EU are likely to by announced this week, suggested Jens Perdersen, Analyst at Danske Bank.
Key Quotes
“With the latest additions to the EU sanction list against Russia, a total of 87 individuals and 20 organisations and companies are now on the list”.
“Furthermore, the EU is set to agree on so-called ‘phase 3’-sanctions tomorrow, which target specific economic sectors”.
“That will likely include restricting access to capital markets for state-owned Russian banks and an embargo on arms trade as well as trade with dual-use technologies and energy technologies”.
“The trade bans will probably be limited to future contracts and should not affect current supplies of energy, natural gas and other commodities”.
“While, in our view, the impact of the conflict and the subsequent sanctions is mostly isolated to the Russian economy – the Russian stock market plummeted further on Friday – the tightening of sanctions against Russia looks to be a cause for concern in the global oil and grains market as well as the European natural gas market”.
“Prices on oil, wheat and European natural gas were pushed higher on Friday, as worries in the markets that new sanctions could restrict Russian commodity trade clearly rose”.
Key Quotes
“With the latest additions to the EU sanction list against Russia, a total of 87 individuals and 20 organisations and companies are now on the list”.
“Furthermore, the EU is set to agree on so-called ‘phase 3’-sanctions tomorrow, which target specific economic sectors”.
“That will likely include restricting access to capital markets for state-owned Russian banks and an embargo on arms trade as well as trade with dual-use technologies and energy technologies”.
“The trade bans will probably be limited to future contracts and should not affect current supplies of energy, natural gas and other commodities”.
“While, in our view, the impact of the conflict and the subsequent sanctions is mostly isolated to the Russian economy – the Russian stock market plummeted further on Friday – the tightening of sanctions against Russia looks to be a cause for concern in the global oil and grains market as well as the European natural gas market”.
“Prices on oil, wheat and European natural gas were pushed higher on Friday, as worries in the markets that new sanctions could restrict Russian commodity trade clearly rose”.