Trade with Russia will be affected by the sanctions, but there is uncertainty related to the oil and gas trade, DNB believes.
DNB points out that the oil and gas trade lead to Russia having a foreign exchange surplus. Now the banks in Russia have no opportunity to settle currency transactions.
According to DNB, this will hit the Russian economy hard and lead to strong inflation. But the export of oil and gas to Europe makes the severity of the consequences uncertain.
“The sanctions seem to provide an opening for European countries to continue to import Russian oil and gas,” DNB wrote in an analysis, adding that there may be loopholes in the sanctions.
DNB noted that the uncertainty would make financial markets “nervous” in the next few days.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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