Russian growth: other sanctions could have serious consequences New Western sanctions against Moscow about the crisis in Ukraine could have serious consequences for the growth of the already sluggish Russia said Saturday the Russian Economy Minister Alexei Oulioukaiev. Russia has prepared three scenarios in a tightening of sanctions announced Friday by the European Union if Russia did not reduce tensions in eastern Ukraine until Monday. The most optimistic scenario foresees sanctions on luxury goods, caviar, furs ... but the worst includes a whole: metals, fertilizers, oil, gas and so on, taking account of prices and volumes, said the minister to the Rossia television. In this case, economic growth could seriously go into negative territory, he warned, adding, however, that the Russian economy could bear this perspective. The investment rate would go into more negative territory, revenues would decline, inflation and increase state reserves diminish. Alexei Oulioukaev made the comments in the wake of Friday the signing of an historic association agreement between Ukraine and the EU away from the former Soviet republic of the Russian zone of influence. Western leaders have threatened Russian President Vladimir Putin to toughen sanctions against swathes of the Russian economy if Russian policy in Ukraine did not change, especially its material support for pro-Russian separatists in eastern Ukraine. Europeans, like the United States, apply for four months a series of sanctions against Russian or pro-Russian Ukrainian officials, struck a freezing of assets in the EU and a travel ban within the Community. Last week, the Russian central bank has estimated that growth would slow to a rate of only 0.4% this year. On Monday, the rating agency Moodys downgraded from stable to negative view of Russias debt due to the economic impact of the crisis in Ukraine and stated that it might still lower credit rating given the increased risk associated with the insurgency in eastern Ukraine.
Posted on: Sat, 28 Jun 2014 17:21:07 +0000
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