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Energy sanctions ratchet up, Russia close to default?

This week’s announcement that the EU will ban the import of Russian coal from mid-August will not have a major impact on Russian export revenues, but it marks a clear shift in the EU’s aim to target Russia’s energy sector ahead of talks on a possible embargo on Russian oil imports next week. Meanwhile, the possibility of a Russian government default is now looking increasing likely following the US Treasury’s decision to restrict Russia’s central bank from using reserves held at US financial institutions. Some Russian corporates have also reported problems with payment so if the government does default, corporates may be next.
Joseph Marlow Assistant Economist
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Emerging Europe Data Response

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Emerging Europe Drop-In (11th Aug): We’re expecting downturns in Central and Eastern Europe, but how bad could it get? Join this 20-minute briefing on our Q3 Outlook report, including the latest on Turkey, Russia and whether Hungary’s forint has further to fall. Register now.

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