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

African States Push to Keep Boko Haram Offline

Central African telecoms ministers working with Nigeria to block all videos posted by Boko Haram in effort to blunt Nigerian militant group's propaganda More

Falling Oil Prices, Internet-Savvy Youth Pose Challenge for Gulf Monarchies

Across the Gulf, younger generations are putting a strain on traditional politics More

Philippines Call Center Workers Face Challenges

Country has world’s largest business process outsourcing, or BPO, industry, employing some one-million workers 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.
US Supreme Court Hears Hijab Discrimination Casei
X
Katherine Gypson
February 25, 2015 11:30 PM
The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video US Supreme Court Hears Hijab Discrimination Case

The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video Falling Gas Prices Hurt Nascent Illinois Hydraulic Fracturing Industry

Falling oil prices are helping consumers purchase cheaper petroleum at the pump. But that’s made hydraulic fracturing or “fracking” less economically viable for the companies in the United States invested in the process. VOA’s Kane Farabaugh reports on one Midwestern town that was hoping to change its fortunes by cashing in on the next big U.S. oil boom.
Video

Video Fighting in Sudan's South Kordofan Fuels Mass Displacement

Heavy fighting in Sudan's South Kordofan state is causing hundreds of thousands to flee into uncertain conditions. Local aid organizations estimate as many as 400,000 civilians have been internally displaced since the conflict began more than three years ago, while another 250,000 have fled across the border to refugee camps in South Sudan. VOA's Adam Bailes reports.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.
Video

Video A Filmmaker Discovers Her Biracial Identity in "Little White Lie

Lacey Schwartz grew up in an upper middle-class Jewish family, in a town in upstate New York where almost everyone she knew was white. She assumed that she was, as well. Her recent documentary, Little White Lie, tells the story of how she uncovered the secret of her true racial background. VOA’s Carolyn Weaver has more on the film.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video US-Cuba Normalization Talks Resume Friday

Negotiations aimed at normalizing diplomatic relations between the U.S. and Cuba resume Friday. On the table: lifting a half-century trade embargo and easing banking and travel restrictions. There's opposition in Congress, but some analysts say there may be sufficient political and economic incentives in both nations for a potential breakthrough this year. VOA's Mil Arcega reports.
Video

Video Pakistan's Deadline For SIM Registration Has Cellphone Users Scrambling

Pakistani cell phone users have until midnight Thursday to register their SIM cards, or their service will be cut off. While some privacy experts worry about government intrusion, many Pakistanis are just worried about keeping their phone lines open. VOA Deewa reporter Arshad Muhmand has more from Peshawar.
Video

Video Myanmar Warns Factory Workers to End Strikes

Outside Myanmar's main city Yangon, thousands of workers walked off their jobs earlier this month demanding a doubling of their wages, pay raises after a year and input from labor unions on industrial regulations. Since Friday, the standoff has grown more tense as police moved in to disrupt the sit-ins, resulting in clashes that injured people from both sides. VOA correspondent Steve Herman visited industrial zones which have become a focus of Myanmar's fledgling workers rights movement.
Video

Video Oscar Winners Do More Than Thank the Academy

The Academy Awards presentation is Hollywood’s night to reward the best movies from the previous year. It’s typically a lot of glitter, a lot of thank you’s, a lot of speeches. But many of this year’s speeches carried messages beyond the thank you's. VOA’s Carolyn Presutti takes a look.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8836
JPY
USD
118.88
GBP
USD
0.6451
CAD
USD
1.2469
INR
USD
61.751

Rates may not be current.