Latest U.S. sanctions won’t affect Ukraine in short term, NBU official says

The latest round of U.S. sanctions against Russian
companies, oligarchs and officials won’t have a direct effect on Ukraine’s
economy and financial markets in the short term, National Bank Deputy Head Oleh
Churiy told journalists on Apr. 12. Russia’s share of Ukrainian exports has
already plunged in recent years to 9% from 30% in 2013 “so the direct influence
is very limited,” he said. A bigger effect could come from the sanctions
affecting Russia’s neighboring states that still have deep relations with
Ukraine, he said.

The situation with Russia, coupled with the threat of
trade wars and heightened geopolitical situation, in general prompts higher
yields on emerging market bonds, Churiy said. “The spread on Ukrainian bonds
are widening a bit. Perhaps it’s a temporary phenomenon,” he said. The latest
U.S. sanctions forced the Russian Finance Ministry to cancel a bond auction for
the first time since 2015, Bloomberg News reported on Apr. 12.

Recall, the Trump administration announced on Apr. 6
new sanctions against a list of Russian firms, oligarchs and officials a month
after the nerve agent attack on former Russian spy Sergei Skripal in England in
March.

Zenon Zawada: The biggest concern for Ukraine from any Western sanctions imposed on
Russia is the risk of expanded warfare in retaliation, whether in the Donbas
region or an offensive to occupy the Ukrainian territory, which we believe
remains a realistic possibility. Four years after the start of warfare, most
Ukrainian companies have already found new trading partners and markets,
limiting any economic effect.