News / Economy

Western Sanctions Begin to Ripple Through Russian Economy

A man walks past an information screen on display inside the office of the Moscow Exchange in the Russian capital Moscow, March 14, 2014.
A man walks past an information screen on display inside the office of the Moscow Exchange in the Russian capital Moscow, March 14, 2014.
VOA News
The effect of U.S. and European economic sanctions aimed at Russia's business and political elites is beginning to ripple through the country's economy.

Two American credit companies, Visa and MasterCard, blocked transactions with their cards Friday at several Moscow banks. The institutions said they were complying with U.S. law after U.S. President Barack Obama imposed new sanctions the day before to protest Russia's annexation of Ukraine's Crimean peninsula.

Meanwhile, Russia's Finance Minister Anton Siluanov said the introduction of sanctions undoubtedly has had a "negative" impact on international perceptions of the Russian economy. He said that could lead to Russia abandoning plans to borrow $7 billion on international financial markets this year.

Fitch, an international credit rating company, lowered its outlook for the Russian economy from stable to negative, the same assessment Standard & Poor's made on Thursday. The Russian stock market has fallen more than 10 percent this month as Moscow's dispute with Western nations over its actions in Crimea has escalated.

But some Russian business executives have downplayed the effect of the U.S. sanctions.

Russian Railways chief Vladimir Yakunin said he is in "good company" with other close associates of Russian President Vladimir Putin in being targeted by Mr. Obama's sanctions.

He wrote on his blog, "I cannot hide that I felt flattered."

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Multimedia Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

This forum has been closed.
Comment Sorting
Comments
     
by: Intrepid from: World
March 23, 2014 10:45 PM
If the Oligarchs are so wealthy, then they do not need internationally recognized credit cards. On the other hand, it does present a problem booking travel needs without one. They should try American Express.


by: Expatriate from: Israel
March 22, 2014 10:29 AM
In my opinion, it is a great mistake and fallacy to consider Mr.Putin a leader interested in maintaining any stability and integrity of his country. He by no means depends on elections, and he had been appointed to his post by some backstage group of the former soviet nomenclature to act in its interests. At present, the complete preparedness of their parallel oligarchic economics to its independent functioning puts on the agenda just the purpose to get rid of the Russian population as a whole, since this so-called "nation" or "people" may reqire by its inalienable right to give back what was unlawfully appropriated by the elite of pillagers. That's why the forthcoming disintegration of the State RF is in effect predeterminate in any case, and they only profit by the occasion of making Russia a country at war in order to loot all that will be possible to scrounge before the planned separation of the Federation - either with secession or without. Don't take Putin's smoke-screens for his genuine intention, he is spy after all.


by: Obangala from: US
March 22, 2014 8:49 AM
Western Sanctions Begin to Ripple Through Russian Economy... which will soon cripple Europe's economy... bringing Russia and China ever more closer.


by: Gennady from: Russia, Volga Region
March 21, 2014 10:36 PM
Visa and MasterCard’s block has given an excellent warning sign for those superwealthy of Putin’s Russia who had prefered the banks owned by sanctioned personalities. Unfortunately, Mr Yakunin of Russian Railways from the list of those who plunder the country’s resourses has shown no remorse or any second thought at his wrondoings at all. They play double or nothing. Ukraine’s people with their uprising and overthrowal of the corrupt Yanukovich regime have done excellent job – they showed Russian people the way of how to liberate themselves from the similar corrupt regime of their own that stifles economy and keeps Russia in the mediaeval ages.

In Response

by: Mark from: Virginia
March 22, 2014 4:56 PM
“I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical.” -Thomas Jefferson

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.