The announcement of new US sanctions against Moscow has led to the next fall of the ruble, and later Russian banks may face great difficulties in buying currency in global financial markets, writes Die Welt.
However, Washington’s sanctions are unlikely to “bring Russia to its knees,” since over the years the Kremlin has become less vulnerable due to the replenishment of foreign exchange reserves and low public debt, the publication adds.
In the era of geopolitics, the United States is betting on “a new weapon, the power of which the whole world can feel immediately” – the dollar, writes Die Welt journalist Holger Csspitz. The American currency is a “lubrication of globalization,” and one who is exposed to Washington’s disgrace “cuts off from business,” the author explains.
As the analyst of Commerzbank Lutz Karpovitz said, if sanctions are introduced, Russian banks will “find it extremely difficult to buy money on global financial markets.”Because of fear of sanctions, European banks can also stop cooperating with private banks in Russia.
There is a risk of imposing additional sanctions.
The next step may be to prohibit investors from buying Russian government loan bonds, which will lead to a further fall in the ruble by 15%. “But even the most severe sanctions can not put Russia on its knees. Over the years, the Kremlin has done much to become less vulnerable, for example, by replenishing foreign exchange reserves … In addition, with a debt of 16%, Russia is among the countries with the least debt in the world.
Thus, it becomes obvious that America’s new sanction-weapons are inefficient, “sums up Die Welt.