The expert assessed the risks from the expansion of U.S. sanctions to the Russian economy

© Fotolia / DmitrydesignerРоссийские rubles. Archival photoThe expert assessed the risks from the expansion of U.S. sanctions to the Russian economy© Fotolia / Dmitrydesigner

The extension of anti-Russian sanctions approved by the U.S. Senate, does not carry systemic risks for the Russian economy, according to ING analyst Dmitry Polevoy.

The U.S. Senate on Wednesday overwhelmingly approved a bill to expand sanctions against Russia. In particular, it is proposed to reduce the maximum term of market financing of Russian banks under sanctions, up to 14 days of sanctions oil and gas companies up to 30 days. In addition, within 180 days after the introduction of the amendments, the head of the U.S. Treasury must submit to Congress a report describing the possible consequences of the expansion of sanctions on the sovereign debt of the Russian Federation.

«Our current understanding is that large and dramatic consequences for the economy will be. Required, of course, a more detailed analysis of all those who potentially fall under these sanctions, but the current systemic risk of these sanctions we do not see large negative effects also,» said Field, RIA Novosti reported.

According to him, reduction of terms of crediting can affect the state-owned companies in the relevant sectors. «For private companies, we think that all the same access to funding will continue. In addition, I think companies, large borrowers, which have a significant amount of debt, was able to accumulate a sufficient reserve of foreign currency liquidity, some safety cushion, to feel comfortable for one or two years,» said Field.

He did not rule out short-term market reaction. «But, given the country two years lives under sanctions, there is already occurred with adaptation and point of view, habits, and the search and development of some mechanisms of how to work with short funding in terms of state-owned banks and state-owned companies,» said Field.

He also reminded that the volume of debt payments was less than it was in 2014.

«Even if you will have some difficulties with the lack of foreign exchange liquidity, it is worth remembering that the Central Bank has instrument currency REPO, it is stored, it is very much reduced. But in case of serious threats to financial stability, the Central Bank may start to increase lending through currency REPO», — said Field.

US sanctions against Russia in the help RIA Novosti >>

The expert assessed the risks from the expansion of U.S. sanctions to the Russian economy© RIA Novosti, Infografiken sanctions against Russia and retaliatory measures