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could be sanctioned, without giving any details.
Biden’s comment follow US Secretary of State Antony Blinken, who was appointed in February and gave his first major foreign policy speech this month, where he laid out a more balanced picture of the need to be tough on China and Russia, but which would be tempered by consultations with Europe, which wants a more accommodative relationship with Moscow.
Russia’s ruble sank as much as 1.6% to 74 per dollar, its biggest intraday loss since February 25, Bloomberg reports. The benchmark MOEX index also extended declines, and was down 2.1% as of 2:37 p.m. in Moscow. Ten-year bond yields were up three basis points at 6.84%, near their highest in a year.
Biden’s comments caught many traders out who had taken bets that the US sanctions will be insignificant.
“Lots of lazy rouble longs put back on this week, on sell side shops banging the line the US would do next to nothing on the sanctions front,” said Tim Ash, Senior Sovereign Strategist at BlueBay Asset Management in a note to clients. “It’s still amazes me how sanguine the sell side is on Russia sanctions risks. Guess banks typically are all “invested”, one way or another, in the Russia story.”
These market participants argue that US investors are too deeply exposed to Russian sovereign debt and Russia is already too deeply integrated into the global economy for the US to be able to impose really painful sanctions. Moreover, Blinken’s stated goal of coordinating with the EU on its Russia policy is also taken to mean US sanctions will be targeted, but won’t include any economically damaging measures.
Biden said that in a past conversation with Putin, he told him that he “looked in your eyes and I don’t think you have a soul.” The remark was a reference to George W. Bush’s 2001
2.6 Russian govt to invest more NWF money into infrastructure
The Russian government is preparing new guidelines for investing National Welfare Fund (NWF) funds into infrastructure.
Russia’s Minister of Finance Anton Siluanov said on March 17 that the government is preparing new guidelines for investing funds from the NWF, Interfax reported the same day.
According to Siluanov, the new guidelines could take effect as soon as in the next several months if the Ministry of Economic Development confirms that the current economic situation supports keeping NWF’s FX assets at above the threshold of 7% of GDP.
Until now the government has been very reluctant to touch the money in the NWF, which has been tasked with supporting the budget if it falls into deficit.
15 RUSSIA Country Report April 2021 www.intellinews.com