Tensions in Ukraine briefly appeared as though they were easing a few weeks ago, but that didn’t end up being the case. In response, the U.S. imposed further sanctions on Russia, which could impact numerous markets. For example, Russia’s oil supply could be harmed, potentially increasing the price of crude. This is a situation investors who participate in crude oil trading need to follow.
According to Fox News, the U.S. is targeting seven Russian government officials by putting an asset freeze and U.S. visa ban. Additionally, the Commerce Department is taking action against 13 companies by denying export license applications for “any high-technology items that could contribute to Russia’s military capabilities.”
“The goal here is not to go after Mr. Putin personally,” President Obama said in a news conference. “The goal is to change his calculus with respect to how the current actions that he’s engaging in could have an adverse impact on the Russian economy over the long haul.”
Russian officials believe the sanctions will have little impact on the country’s economy, according to the Voice of America.
“There will probably be some consequences [for the economy] … but it is unlikely that they will have a serious impact on an operational, annual level,” Kremlin adviser Andrei Belousov said of the sanctions, according to the Voice of America.
However, that doesn’t mean investors don’t have to react to the news. The simple fear that Russia’s economy could falter can impact the oil market as well as forex trading, as the country’s currency could decline if the economy stalls.
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