The White House finally got around to sanctioning Putin’s friends. Let’s remember why this matters. The Russians have demonstrated a profound serial weakness in assassinating a former double agent in Salisbury, England with a nerve agent whose dosage was so high the responding officer was hospitalized. This isn’t some professional hit job, this was of an order different from previous political murders. On April 06, team Trump got the idea to strike at the heart of Russians ruling oligarchy. Putin and his criminal network were sanctioned by U.S. Treasury.
Being a reserve currency means that to participate in globalized trade one must adopt the U.S. dollar to denominate all exchange. By sanctioning Putin and his nefarious network, the Don is seeking to bankrupt them into oblivion. Get ready for more volatility.
There are 14 companies listed by Treasury. Oleg Deripaska, Russia’s richest man and CEO of United Company Rusal, remains Russia’s largest aluminum supplier. By giving investors until May 07 to rid themselves of stock, the Don has sought to assist investors to stop enabling the Russian plutocracy. All contracts, derivatives and activities with Russian Rusal end in 60 days from April 06.
Treasury listed Viktor Vekselberg and Suleiman Kerimov, Putin’s closest criminal pals that constitute the ruling Russian reich.
Here’s the downside: Putin has ordered the Russian Central Bank to limit exposure to foreign debt while floating the Russian currency. The Central Bank has a cushion of foreign reserves available to envelop external shocks.
Like North Korea and other sanctioned trans-criminal enterprises, the components of Russia’s globalized political economy aren’t exposed to global trends outside of oil. Russian bonds and shares have virtually no weight in benchmark indices that foreign investors follow.
Even still, its time that Putin be given the war he wants: on America’s terms.