The new phase of sanctions imposed by the EU and the U.S. against the Russian Federation due to the escalation of the conflict in the east of Ukraine may push Russia out of the major financial markets.
This opinion was expressed by senior analyst at the Danske Bank Lars Christensen, a Ukrinform reporter said.
“Russia is definitely already in a recession, and the development of the Russian economy will decline in the future, even if the country is now able to withstand economic sanctions from the EU. Russia is getting closer and closer to being completely cut off from the global financial markets,” the expert said, commenting on the sanctions that will restrict Russia’s access to the European financial market.
At the same time, according to the analyst, the new EU sanctions will not lead to a default in Russia, which has significant foreign exchange reserves.
However, Christensen believes that Russia will feel the impact of sanctions in the future, although it tries to pretend that nothing is happening.
“We can talk about the “sovietization” of the Russian economy, if Russia is isolated. The state will not go bankrupt, but a deep economic crisis will dominate. This is the most credible scenario in the near future,” the expert predicted.
Speaking about the impact of sanctions against Russia on the European economy, Christensen doubts that this will have serious consequences for European companies, though did not avoid losses.
“Some companies that export goods to Russia, of course, will suffer, because any sanctions have their value. But by and large, it will not have a global negative impact on the European economy,” the Danish analyst summed.
As Ukrinform reported, on July 29 the European Union imposed new economic sanctions against Russia because of the situation in Ukraine. They relate to the oil sector, defence industry and double-purpose technology. The access of Russian state-owned banks to finance resources is also expected.