Russian economy set to suffer more pain
A week ago, 298 people lost their lives when Malaysia Airlines MH17 came down in Eastern Ukraine. Western officials and the Ukrainian government have said that the flight was shot down by separatist fighters and fingers are being pointed at Russia for giving direct and indirect military support to the separatists. The downing of MH17, in our view, represents a renewed escalation in the conflict and the likely outcome is a further downturn in the Russian economy and downward pressure on Russian markets.
New sanctions to hit Russia
In our view, the likely next step is to expand sanctions to the financial sector, which could seriously limit Russian financial institutions' access to the international capital markets and thereby further increase funding costs for Russian companies. The EU will announce new sanctions today but, more importantly, we are still awaiting the next move on sanctions from the US government.
To Read the Entire Report Please Click on the pdf File Below