Russia: US curbs on Russian banks will be an act of economic war

Russia has categorically warned US that any move which will put curbs on Russian banks will be act of an economic war and will invoke retaliation of equal scale. The warning has come in the wake of latest US sanctions and is clear signal of the panic which the sanctions have created in Russia. The sanctions have sent the Ruble tumbling down with registering a loss of about 6 percent this week.

There are rising fears by the economists that if US sanctions take effect completely, Russian economy will not register any growth. President Putin has also taken serious note of the new unfriendly sanctions by US and has discussed the same with his security team.

The sanctions have thus brought Russian efforts to improve ties with US by specially trying to bridge the ties with President Trump back to square one as US lawmakers pushed with the sanctions. Latter was due to the apparent show of softness of President Trump towards Putin. The push for sanctions had created considerable pressure on President Trump to act tough on Russia especially as mid-term elections are fast approaching.

US announced sanctions on Russia for its involvement in the nerve-agent attack on ex-spy and his daughter at Salisbury, UK. The Novichok nerve agent used in the attack was banned under international law and thus US expressed grave disappointed on Russia for its reckless and irresponsible behaviour.

The new sanctions thus deeply hurt the investor sentiment in Russia and has led to a wider sell-off. There are growing fears that Russia will remain locked in endless sanctions.

Russian foreign minister Sergei  Lavrov and US Secretary of State discussed the sanctions on call and have agreed to hold dialogue over the same.

 

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