Published: Fri, August 10, 2018
Money | By Armando Alvarado

The Russian ruble is getting slammed amid USA sanctions

The Russian ruble is getting slammed amid USA sanctions

The State Department announced the sanctions on Wednesday but did not say what or who would be targeted, with more details to follow later this month.

The US announcement fuelled already worsening investor sentiment about the possible effect of more US sanctions on Russian assets and the rouble slid by over 1 per cent on Thursday against the dollar, a day after falling towards its lowest level in almost two years.

"And it would be necessary, it would be needed to react to this war economically, politically or, if needed, by other means".

"Our American friends should make no mistake about it, " he added.

Russian Federation is planning retaliatory measures against sanctions imposed by the USA over the poisoning of former spy Sergei Skripal, which caused the rouble to fall to its lowest level since November 2016 this morning.

The sanctions would be structured in two tranches, with the biggest impact from the initial sanctions expected to come from a ban on granting licenses to export sensitive national security goods to Russia, NBC reported, quoting a senior State Department official. "Your compliance with the Chemical and Biological Weapons and Warfare Elimination Act of 1991 is critical to showing Putin that we are serious about challenging his deadly acts, as well as his ongoing attacks on our democracy".

Moscow still denies any involvement in the March 4 attack in Salisbury, England, and calls the U.S. response "categorically unacceptable". Bipartisan legislation introduced in Congress last week would punish Russia's energy and financial sectors and sanction Russian sovereign debt.

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The U.S. State Department said on Wednesday it would impose fresh sanctions by the month's end after determining that Moscow had used a nerve agent against a former Russian double agent, Sergei Skripal, and his daughter, Yulia, in Britain, something Moscow denies.

The new sanctions will not fully take effect until later in August, but already the Russian ruble tumbled to two-year lows and nervous investors began selling off Russian assets.

MOSCOW-Russian officials and companies were bracing for further economic pain Thursday, as the USA decision to punish the Kremlin for an alleged nerve-agent attack in the United Kingdom diminished hopes of a bilateral thaw.

The Kremlin has vehemently denied any involvement in the Salisbury and Amesbury incidents, and it did so again in lieu of new sanctions.

Kosachev argued that the new sanctions amount to 'inflicting a punishment in the absence of a crime in the tradition of lynch law'.

The US sanctions came despite President Donald Trump's efforts to improve relations with Russia and its leader, Vladimir Putin, and his harsh criticism of the investigation into Russian interference in the 2016 election.

In the event of non-compliance, a second round of "draconian" sanctions would be given a green light, the official said, adding that these could go as far as a ban on Russian airlines using U.S. airports.

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