There are no risks: the extension of sanctions against Russia are not afraid of neither the government nor business

© RIA Novosti / Natalia to Seliverstova in fotobanka square in MoscowThere are no risks: the extension of sanctions against Russia are not afraid of neither the government nor business© RIA Novosti / Natalia to Seliverstova the image Bank

A bill allowing the U.S. to expand sanctions against Russia, did not cause panic nor the Russian government or among citizens and entrepreneurs who are more concerned about the possible consequences of the abolition of the restrictions, because in this case Russia will have to curtail a significant portion of direct support to domestic producers.

During the «straight line» the President of the Russian Federation on Thursday the representative of the agro-industrial complex asked whether Russia to renew retaliatory restrictive measures and what happens when Western sanctions, «God forbid, will end.» Vladimir Putin promised that the government will continue to support the farmers, but indirectly and without violating the WTO rules. He advised Russian farmers to do everything possible now to be competitive in the future.

«We today to help you struggling to you we sent the revs on to become competitive. And if quality and productivity are not lower than your competitors, you will always have the advantage in your own market, you have logistics much cheaper», — said Putin.

Anti-Russian US sanctions have led, according to estimates of the state Department, to the fall of Russia’s GDP by 1%, while the effect of sanctions is double-edged: the UN estimates, Russia has lost them, 50-52 billion dollars, and those who introduced them — 100 billion dollars, Putin said.

«What’s with these sanctions happened and how they have affected? Affected or not? Yes, reflected. Radical or not? I don’t think. The reflected world market conditions and the decline in the prices of our traditional commodities: oil, gas, metallurgical industry, chemistry and so forth,» — said Putin.

According to the head of the state, the positive aspect of the sanctions was that the country had «to include brains».


Commenting on the US plans to extend the restrictive measures against Russia, Putin noted that Russia has always lived under sanctions: the Western countries had introduced them when he felt competition.

«Now we know that in the U.S. Senate, there was again a bill regarding the tightening of these sanctions. By the way, why? After all, nothing extraordinary happens. In this connection, scratch began to talk about these sanctions?» Putin said, calling it evidence of «the ongoing political struggle in the United States.»

The U.S. Senate on Wednesday overwhelmingly approved an amendment to expand anti-Russian sanctions. This amendment is included in the sanctions bill against Iran. The proposed sanctions against Russia would entail a reduction of the maximum term of market financing of Russian banks under sanctions, up to 14 days, and of the companies subjected to the oil and gas sector — 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 Russia.

Putin noted that if it were not, for example, the case of Crimea, the us lawmakers «would come up with something else to deter Russia». «It always is (the anti-Russian sanctions — ed.) and fed policies — to deter Russia», — he said.

There is no risk

The extension of anti-Russian sanctions approved by the U.S. Senate, does not carry systemic risks for the Russian economy, believe Russian experts.

«Our current understanding is that major 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, too,» — told RIA Novosti the main ING analyst Dmitry Polevoy.

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.

Don’t see any risk for the Russian economy, but negative moods, and experts «Atona». «The most painful» the extension of sanctions (on sovereign debt) remains very remote risk, given the vague wording on this issue in the proposed bill,» — experts say.

Difficult, but possible

The possible extension of the U.S. economic sanctions will not affect Russia’s banking sector as a whole, but it may complicate the business of trade financing to Russian banks under sanctions, in particular, of the largest state banks — Sberbank, VTB and Gazprombank, said RIA Novosti former Deputy Minister of Finance, member of the Board of Directors of the Bank Oleg Vyugin.

«The only limits are the state banks and banks which are under sanctions. Impact so that clients will be more difficult to conduct operations on prepayment of supplies, trade financing. In General, the more likely they (banks — ed.) since this market is almost gone and customers will use the services of those banks which do not fall under these sanctions», — said Vyugin.

«Banks would be difficult to do because 14 days is a very hard deadline for the customers. Maybe someone can so quickly take all the supplies then it will pass. Banks will remain, but they will simply not provide such services to customers,» — said the Agency interlocutor.

Vyugin said that approximately 55% of all banking assets in Russia is currently under sanctions. «I mean, there are still 45% of the assets that control the banks do not fall under sanctions,» he said. Also, according to the economist, the sanctions will not affect Russia’s banking sector as a whole. «Yes, in General, will not affect» — he answered the corresponding question.

The United States previously imposed sanctions, including against Russian banks (September 2014), which limited the access of credit institutions to the capital market. In the sanctions list includes Sberbank, VTB, VEB, the Bank «Russia» and numerous «daughter», «SMP Bank», Gazprombank, «Bank of Moscow», the Russian agricultural Bank «Asia Bank» (Bank Asia), Russian national commercial Bank (RNCB), Inresbankom, Mosoblbank.

Neither hot nor cold

Don’t expect major changes, and oil and gas companies, which already are under restrictions. The reduction of the term of financing oil and gas companies in Russia as part of the expansion of U.S. sanctions against Russia will not affect Gazprom, Deputy Chairman of «Gazprom» Alexander Medvedev.

«The law, which passed the Senate, still have a hearing in the house of representatives, then the bill should fall on the President’s Desk by Trump to become law, I haven’t seen it yet, only from mass media»,- said Medvedev.

«From the fact that the funding period was reduced from 90 days … we are neither hot nor cold. Because us money for 90 days is not necessary, we have the payback period of investment in the tens of years,» he added. Medvedev noted that there is no reference to a quick investment.

And in General, the implementation of oil and gas projects of the Russian Federation a significant impact of new sanctions will not agree Deputy energy Minister Anatoly Yanovsky, as Russian companies are mainly loans from domestic banks and not abroad.

There are no risks: the extension of sanctions against Russia are not afraid of neither the government nor business© RIA Novosti, Infografiken sanctions against Russia and retaliatory measures