The consequences of American sanctions are becoming more tangible in Russia

The exchange rate of the ruble collapsed, businessmen count losses.

Фото: Depositphotos

The collapse of the Russian currency on April 9, which the media called “Black Monday,” was followed by “Black Tuesday.” On April 10, the dollar exchange rate against the ruble, during trading on the Moscow Currency Exchange, was approaching the 64 mark, which has not been observed since December 2016. The euro exchange rate soared to almost the 79-ruble threshold, writes “Voice of America«.

Only at the end of the trading session did the dollar and euro somewhat moderate their onslaught, reaching the level of 63 and 78 rubles, respectively. And this - with the increased price of oil!

So the market reacted to the new US sanctions against a number of Russian companies, businessmen close to Vladimir Putin, and government officials, along with rising tensions in Syria.

According to some forecasts, the weakening of the ruble exchange rate will continue until the World Cup, which will be held in Russia in June-July. International investors are already beginning to "blow on the water", fearing that almost any Russian company may fall under the sanctions.

According to the agency Bloomberg, Russian businessmen, due to the sanctions, by Monday lost a total of about 16 billion dollars.

Associate Professor of Economics at Moscow State University, in the past - Assistant Minister of Finance of the Russian Federation Oleg Buklemishev, believes that now there is a "painful process of reassessing risks that previously seemed completely manageable and not so scary."

According to the expert, it became obvious that for any company present on the international stock exchanges, the inclusion in the “black lists” is actually fatal and in just a day can bring it to default.

“This is well illustrated by the example of Oleg Deripaska’s RusAl,” Buklemishev stated in an interview with Voice of America. - The largest company with export-import flows, multi-billion-dollar turnover and good potential is put on the brink of default with one stroke of the pen. It was also clearly demonstrated that those things that were previously considered on the verge of science fiction, if not tomorrow, then the day after tomorrow may well become a reality. I am referring to Russia's exclusion from the (system) SWIFT and the obstacles associated with the purchase of Russian government debt on the stock exchanges. ”

According to media reports, a bill is being prepared in the US Congress, according to which American citizens will be prohibited from buying or selling Russian government bonds. Moreover, in accordance with the draft, the measures should come into force no later than three months after the establishment of these restrictions.

As Oleg Buklemisheva sees, investors and other market players are now busy recounting opportunities and potential damages, “hence the nervous state”.

“Where everything will come depends on various factors, among which is one of the most difficult parameters to predict: the Russian reaction,” he adds. - From my point of view, this can also “add pepper” to the equation with many unknowns, for the simple reason that the promise issued already (by the Russian government) to compensate for damages to companies blacklisted, and some counter-sanctions, and other policy measures that can be taken at this stage are completely unpredictable. ” Therefore, investors may well evaluate them in the most negative light, the economist summarized.

In turn, the Russian entrepreneur, chairman of the political party “Western Choice” Konstantin Borovoy believes that the correctly chosen course of action of the American administration affects the Russian markets today. As he imagines, the task of destroying Putin’s financial instruments, which allow him to carry out his aggressive policy, is being solved.

“The most important thing here is not even the impact on the market, but the confirmation of the attitude that the policies pursued by Russia are unacceptable, as well as the creation of an appropriate atmosphere,” Borovoy clarified in a comment to the Voice of America. “After all, it is absolutely clear that, indirectly, all of Putin’s actions – including those that are criminal in nature – were and are being financed, including by the West, through the mechanism of cooperation with Russian companies.”

At the same time, as Konstantin Borovoy suggests, stock markets that collapsed as a result of American sanctions may recover over time, however, the very atmosphere of rejection will remain, which, in his opinion, is extremely important.

“Thus, it creates not just an unattractive environment for investment in Russia: investing in Russian projects becomes a dangerous business, because, directly or indirectly, they are connected with the activities of the state. Mankind, of course, should not and cannot accept such a given as a norm, ”he stressed.

In addition, the chairman of the Western Choice Party expressed the hope that European politicians would support US sanctions. “Although there is no special need for this,” concluded Konstantin Borovoy, “Because the US sanctions already concern global projects and contacts, and large European companies are determined to refuse to cooperate with the regime of Vladimir Putin.”

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