The American edition of The New York Times writes today about the impact of sanctions on the world economy in an article titled "Why Sanctions on Russia Will Backfire?" The main hope of the US government, which imposes sanctions, is to influence the foreign policy of Russia, but for the US sanctions against Russia involve significant costs. And there are a number of significant reasons.
First of all, being held in the previous years, the Russian integration into the global economy has played into the hands of Washington, which received huge profits from joint investment projects. After the imposition of sanctions, and their further tightening, even if they are removed in the near future, Russia is unlikely to dare to cooperate with the US on the same level.
Second, the "Russian" lesson is already learned by other countries that are not yet US allies on globalization, and they will not become them, because they already know what might happen in the future with those countries, whose policies are not satisfying with the States.
Third, it is obvious that the sanctions hit leading government and commercial companies throughout the world, which have invested into the Russian economy, but were forced to follow a course of sanctions, as part of the European community. Those who dared to continue to cooperate with Russia are at risk to fall under the sanctions of its own state.
Fourth, the US plan to undermine the authority of Putin in Russia has not worked, and led to the fact, that now the majority of the population of Russia is opposed to the United States, who are trying to undermine the financial condition of ordinary citizens.
American Journal of Bloomberg Business is trying to understand what are the chances of the Russian economy in connection with the extension of the sanctions. According to the publication, the Russian financial markets after the imposition of sanctions in the past year have undergone great changes, with the stages of the fall and rise. What is expected in the Russian economy? Of course, the fall of the ruble and geopolitical instability in Ukraine is a great threat to Russia, but the fact is that Russia continues to be a very attractive country for investors. What is the reason? The fact that the Russian interest rate is 13.7% and it is the highest among the 45 countries of the world, and foreign investors is beneficial to keep their assets in Russian banks, as well as they are looking for opportunities for contracts with Russian companies. Abroad, there is no such an attractive investment climate. Despite the fact that the sanctions have been extended for another year, the Russian leadership is doing everything to ensure that the redistribution of capital is held in the mildest form, which allows the country to resist the aggressive international community and attract new partners and allies.
The Wall Street Journal also writes about investors, who are returning to Russia. According to the American edition, pessimism about Russia, is exaggerated. Despite the sanctions, the collapse of oil prices and the financial problems of foreign investors are still looking for ways of economic cooperation with Moscow. This was primarily promoted by exchange-traded funds in Russia, which provide capital inflows into the country. In addition, a stable position of Russia in the global energy sector, makes the country attractive for investment.
