HomeMediaLatest NewsPutin decided to recognize the DPR and LPR: how does this threaten the economy and the market

Putin decided to recognize the DPR and LPR: how does this threaten the economy and the market

21 March 2022

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov, President of the Institute for Energy and Finance, commented to Forbes about possible EU sanctions in response to the DPR and LPR recognition.

Marcel Salikhov believes that US sanctions will be introduced soon. “Judging by what happened on the market today, these will be sanctions against Russian banks: the shares of Sberbank and VTB fell more than the market,” he believes. According to the expert, one should not expect sanctions against the energy sector, but perhaps sanctions will be introduced against some specific companies.

“If I understand correctly, the EU has not yet agreed on what to do next. But in any case, the coordination of sanctions is a rather lengthy process,” Salikhov says. - Therefore, I think that there will be European sanctions, but after some time. Judging by the way the EU has acted before, they will not copy US sanctions.” He expects softer EU sanctions, given that Russia is a major trading partner for the EU, “for example, sanctions against specific individuals. Earlier, the UK said that in the event of Russia's invasion of Ukraine, sanctions would be imposed against "Russian oligarchs." As for the sanctions against Nord Stream 2, according to the expert, the EU will use it as an object for negotiations: “If the gas pipeline is built, it can be put into operation almost immediately. But the ratification process was actually delayed for political reasons. Therefore, I think that the European Union will not allow the launch of the gas pipeline and this will remain a stumbling block until there is a breakthrough in relations between Russia and the European Union.”

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