BFF-43 Russian ruble tumbles on fresh US sanctions

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Russian ruble tumbles on fresh US sanctions

MOSCOW, Aug 9, 2018 (BSS/AFP) – The Russian ruble tumbled Thursday to its
lowest level against the dollar in almost two years after the United States
said it was imposing fresh sanctions on Moscow over the nerve agent attack on
a former spy in Britain.

Washington’s punitive measures led to the ruble falling to 66.48 against
the dollar on Thursday morning, its lowest value since November 2016.

The latest wave of sanctions also saw the Russian stock market index RTS
dive 3.2 percent and the MOEX index fall nearly 1.2 percent at around 0745
GMT on Thursday.

Russian banks were also affected, with shares in the state-run Sberbank
sliding 4.7 percent.

The US State Department announced the sanctions late on Wednesday, calling
them a response to “the use of a ‘Novichok’ nerve agent in an attempt to
assassinate UK citizen Sergei Skripal” — who was a double agent — and his
daughter Yulia in March.

The action is aimed at punishing President Vladimir Putin’s government for
having “used chemical or biological weapons in violation of international
law,” State Department spokeswoman Heather Nauert said in a statement. The
new sanctions are to take effect following a 15-day Congressional
notification period, she said.

Another senior State Department official told reporters that the
administration decided to impose a “presumption of denial” for the sale to
Russia of “national security sensitive” US technologies that require federal
government approval.

Such technologies have often been used in items including electronic
devices as well as calibration equipment. The exports were previously allowed
on a case-by-case basis.

The move could cut off hundreds of millions of dollars worth of exports to
Russia, said the official, who requested anonymity in order to speak about
the sanctions.

The Russian economy is still reeling from the 2014 international sanctions
imposed on Moscow over its actions in Ukraine and a crash in oil prices the
same year.

While Russia returned to growth in 2017 after two years of recession, it
pales in comparison with growth figures seen during Putin’s first two terms
in office from 2000 to 2008 thanks to soaring oil prices.

BSS/AFP/RY/1618 hrs