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  • Sanctions - Effects on Russian Economy

    Many economists expect Russia to enter recession and most have rushed to slash their growth forecasts as a result of the worst showdown between Russia and the West since the fall of the Berlin Wall.
    ------------------------------------------------
    Economist have warned ever since President Vladimir Putin declared on March 3 a right to invade Ukraine to defend the Russian-speaking population that the price Moscow will pay for its decisions will be hefty.

    The rouble-denominated MICEX <.MCX> index has lost more than $66 billion in market capitalisation and the central bank has spent more than $16 billion of its reserves to defend the rouble. Only last week, MICEX lost 7.6 percent and the dollar-denominated RTS <.IRTS> more than 8 percent.

    In a matter of a few weeks Russia has gone from being perceived as one of the more resilient emerging markets to the withdrawal of the United States monetary stimulus to one of the most vulnerable developing countries, analysts said.

    "Russia's economy was struggling even before the recent rise in geopolitical tensions surrounding Ukraine and some softer economic data from China," said Alexander Morozov, chief Russia economist at HSBC in Moscow. "Possible economic and financial sanctions on Russia add to the uncertainties."

    Russian govt admits economy in crisis as Ukraine weighs - Yahoo News Singapore
    Last edited by Hannia; 17th March 2014, 17:56.

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    Hannia - Hania - Mighthelp

  • #2

    FACT SHEET: Ukraine-Related Sanctions

    The White House

    Office of the Press Secretary

    For Immediate Release March 17, 2014 FACT SHEET: Ukraine-Related Sanctions President Obama today issued a new Executive Order (E.O.) under the national emergency with respect to Ukraine that finds that the actions and policies of the Russian government with respect to Ukraine -– including through the deployment of Russian military forces in the Crimea region of Ukraine –- undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets.

    This new authority expands upon E.O. 13660, which the President signed less than two weeks ago, by authorizing the Secretary of the Treasury, in consultation with the Secretary of State, to impose sanctions on named officials of the Russian government, any individual or entity that operates in the Russian arms industry, and any designated individual or entity that acts on behalf of, or that provides material or other support to, any senior Russian government official. We have fashioned these sanctions to impose costs on named individuals who wield influence in the Russian government and those responsible for the deteriorating situation in Ukraine. We stand ready to use these authorities in a direct and targeted fashion as events warrant.

    In response to the Russian government’s actions contributing to the crisis in Ukraine, this new E.O. lists seven Russian government officials who are being designated for sanctions. These individuals are Vladislav Surkov, Sergey Glazyev, Leonid Slutsky, Andrei Klishas, Valentina Matviyenko, Dmitry Rogozin, and Yelena Mizulina.

    The United States also will seek to hold accountable individuals who use their resources or influence to support or act on behalf of senior Russian government officials. We recognize that the Russian leadership derives significant support from, and takes action through, individuals who do not themselves serve in any official capacity. Our current focus is to identify these individuals and target their personal assets, but not companies that they may manage on behalf of the Russian state.

    In addition to the new E.O., the Treasury Department today has imposed sanctions on four other individuals under E.O. 13660, issued on March 6, for their actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine and in undermining the Government of Ukraine. They are Crimea-based separatist leaders Sergey Aksyonov and Vladimir Konstantinov; former Ukrainian presidential chief of staff Viktor Medvedchuk; and former President of Ukraine Viktor Yanukovych.

    Today’s actions send a strong message to the Russian government that there are consequences for their actions that violate the sovereignty and territorial integrity of Ukraine, including their actions supporting the illegal referendum for Crimean separation. The United States, together with international partners, will continue to stand by the Ukrainian government to ensure that costs are imposed on Crimean separatists and their Russian backers. Today’s actions also serve as notice to Russia that unless it abides by its international obligations and returns its military forces to their original bases and respects Ukraine’s sovereignty and territorial integrity, the United States is prepared to take additional steps to impose further political and economic costs.

    •Vladislav Surkov: Surkov is being sanctioned for his status as a Presidential Aide to Russian President Vladimir Putin.

    •Sergey Glazyev: Glazyev is being sanctioned for his status as a Presidential Adviser to Russian President Vladimir Putin.

    •Leonid Slutsky: Slutsky is being sanctioned for his status as a State Duma deputy, where he is Chairman of the Duma Committee on CIS Affairs, Eurasian Integration, and Relations with Compatriots.

    •Andrei Klishas: Klishas is being sanctioned for his status as a Member of the Council of Federation of the Federal Assembly of the Russian Federation and as Chairman of the Federation Council Committee of Constitutional Law, Judicial, and Legal Affairs, and the Development of Civil Society.

    •Valentina Matviyenko: Matviyenko is being sanctioned for her status as Head of the Federation Council

    •Dmitry Rogozin: Rogozin is being sanctioned for his status as the Deputy Prime Minister of the Russian Federation.

    •Yelena Mizulina: Mizulina is being sanctioned for her status as a State Duma Deputy.

    •Sergey Aksyonov: Aksyonov is being designated for threatening the peace, security, stability, sovereignty, or territorial integrity of Ukraine, and for undermining Ukraine’s democratic institutions and processes. Aksyonov claims to be the Prime Minister of Crimea and has rejected the authority of the legitimate government in Kyiv.

    •Vladimir Konstantinov: Konstantinov is being designated for threatening the peace, security, stability, sovereignty, or territorial integrity of Ukraine, and for undermining Ukraine’s democratic institutions and processes. Konstantinov is the speaker of the Crimean parliament, which on March 11, 2014, declared independence from Ukraine.

    •Viktor Medvedchuk: Medvedchuk, leader of Ukrainian Choice, is being designated for threatening the peace, security, stability, sovereignty, or territorial integrity of Ukraine, and for undermining Ukraine’s democratic institutions and processes. He is also being designated because he has materially assisted, sponsored, or provided financial, material, or technological support to Yanukovych and because he is a leader of an entity that has, or whose members have, engaged in actions or policies that undermine democratic processes or institutions in Ukraine and actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine. •Viktor Yanukovych: Former Ukrainian President Yanukovych is being designated for threatening the peace, security, stability, sovereignty, or territorial integrity of Ukraine, and for undermining Ukraine’s democratic institutions and processes. After abandoning Kyiv and ultimately fleeing to Russia, Viktor Yanukovych called upon Russian President Vladimir Putin to send Russian troops into Ukraine.

    æ, !

    Hannia - Hania - Mighthelp

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    • #3
      World Bank Report for Russia 3/7/2014
      Russia's Monthly Economic Developments
      ===================================
      3/3/2014
      How much of the ruble's slide is directly due to the Ukrainian crisis is impossible to say. The currency has already lost 10 percent of its value since the start of the year because of decreasing interest among foreign investors in emerging markets in general.
      Explainer: The Ukraine Crisis, The Ruble, And The Russian Economy

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      • #4
        3/17/2014
        "There are many signs the economy is now being hit by an uncertainty shock." said analysts at VTB Capital, slashing their forecast for growth in Russia in 2014 to zero.
        Analysis: Russian economy braces for punishment after Crimea seizure

        æ, !

        Hannia - Hania - Mighthelp

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        • #5
          Putin's Relative Promises 'Special Protection' for Firm's Foreign Clients
          http://www.themoscowtimes.com/busine...ts/496153.html

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          Hannia - Hania - Mighthelp

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          • #6
            Central Bank Keeps Lending Rates Unchanged
            http://www.themoscowtimes.com/busine...ed/496174.html

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            Hannia - Hania - Mighthelp

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            • #7
              Crimea nationalizes energy companies - report

              They just barely got there and they're already dividing the loot among themselves.
              Reuters

              MOSCOW, March 14 (Reuters) - Crimea may sell Ukrainian energy firm Chornomornaftohaz to a Russian company "like Gazprom" once the regional authorities take control of it, Interfax news agency quoted a Crimean official as saying on Friday.

              "After nationalisation of the company we would openly take a decision - if a large investor, like Gazprom or others emerges - to carry out (privatisation)," Rustam Temirgaliev, Crimea's first deputy prime minister, said.

              Earlier this week he said Crimea would take ownership of Ukrainian state companies on its territory, including the region's Black Sea natural gas fields, cementing the region's independence before a referendum on joining Russia on Sunday.

              æ, !

              Hannia - Hania - Mighthelp

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              • #8
                Today Putin's inner circle spent the day laughing at America's and EU's toothless sanctions.

                I remember how my father cringed 20 yrs ago, when Ukraine signed away its nuclear weapons in exchange for guarantee of its borders. He shook his head and commented that this was a huge mistake, because none of the signers could be trusted to uphold their agreement. These were the same countries that had betrayed Ukraine in 1945. In the last few weeks the chickens have come home to roost.

                Since Russia did not stick to its agreement to uphold Ukrainian territorial integrity, the treaty re Ukrainian Disarmament is null and void.
                ----------------------------------------------------------------------------------------------------------
                "In the future, no matter how the situation is resolved in Crimea, we need a much stronger Ukraine," he said. "If you have nuclear weapons people don't invade you."
                Ukraine may have to go nuclear, says Kiev lawmaker
                Last edited by Hannia; 18th March 2014, 12:41.

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                Hannia - Hania - Mighthelp

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                • #9
                  Hannia, your dad and my dad think alike. Whats amazing in all of this is that the Budapest agreement is no longer mentioned anywhere. It's as if it never existed and the other countries are just stepping in because they're kind. Which must mean that Ukraine gave away it's nukes for free.

                  Interesting read: Ukrainian Intelligence Opposed Signing of Budapest Agreement



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                  • #10
                    Russian Admits Economy in Crisis as Ukraine Weighs
                    ================
                    As Investors Flee, Russia Inc. Is Feeling the Pain - Businessweek
                    ================
                    Londongrad

                    U.K. regulators had already expressed discomfort with some aspects of London’s status as the preferred destination for capital from Russia and other emerging economies. The London Stock Exchange (LSE) last year introduced new rules designed to make it harder for foreign companies predominantly owned by a single shareholder to list in Britain.

                    The rules, which increased the influence of independent directors and made it harder for controlling investors to direct day-to-day operations, were greeted with caution by some London lawyers and bankers, who worried they could drive business elsewhere. Rosneft (ROSN), state-controlled gas export monopoly OAO Gazprom (OGZD), and steelmaker OAO Severstal (SVST) all have London listings.

                    The potential of being locked out of London by sanctions is a real threat to Russian businesses, said Sergei Ostrovsky, a partner at law firm Ashurst LLP in London.

                    “In the long run,” he said, “there are not many alternatives to the City of London for Russians to get all the financial services they need.”
                    Russia Sounds Alarm on Economy as West Starts With Sanctions - Bloomberg

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                    Hannia - Hania - Mighthelp

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                    • #11
                      other countries just stepping in because they are kind????? what planet are you on??? get real!!!
                      John 3/16

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                      • #12
                        ”” :: :: Top.rbc.ru
                        John 3/16

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                        • #13
                          U.S. Freezes Putin's Netflix Account : The New Yorker

                          Obama's sanctions just got tougher... I think this may work....

                          Wait.. we just handed over the keys to the internet... oh well. Move to plan P, only ten more letters left.

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                          • #14
                            Nick, you seem to not understand the context of my message, come back to Earth when you get a chance.

                            Nick, have you see what was found in offices of the Party of Regions? Stamps. Virtually every approval you would ever need for anything, they have the stamp for it. For instance, you need to be an offical observer for elections, "there is a stamp for that."



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                            • #15
                              Currently MICEX (Moscow Exchange Indices) stock index is down 16% from its February high, having shed roughly $100 billion in value. 3/3/2014 the Kremlin entered the stock market and began furious buying Russian shares in order to artificially increase demand and stabilize prices. Their effort showed small gains 3/18/2014. Just how long will Kremlin will be able to keep these efforts up is questionable.

                              The stock market isn’t alone in its woes. The bond market has been obliterated as well, interest rates are soaring and and the value of the ruble has plummeted, making it the 2nd worst performer among emerging markets after Argentina’s peso. This means inflation on foreign goods, which the Russian consumer depends on, is raging.

                              The falling ruble forces the Kremlin to make Russia’s foreign currency reserves to do double duty. It must not only buy Russian stocks but also buy the currency itself, in order to prevent devaluation from turning Russian purses inside out.

                              The worst is yet to come.

                              Are the people of Russia really prepared to make such horrific sacrifices in order to pursue bloodthirsty imperialism in Ukraine? Do they even know that such sacrifices are being asked of them? Kremlin-controlled broadcast TV is certainly not telling them.
                              ===========================================================

                              dated 3/16/2014 Russian President Vladimir Putin may pay heavy price for Crimea moves - latimes.com

                              Why the Stock Market Is Doomed to Be Cheap | The Moscow Times
                              Last edited by Hannia; 19th March 2014, 16:21.

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