Experts Warn US Sanctions Could Destabilize the Global Financial System

LOCAL NEWS

• New York Times Journalist says US sanctions against Russia may destabilize the global financial system as no country has ever tried to impose such vast restrictions against an economy as large as Russia’s. Experts forecast a massive negative impact in developed economies, especially in Europe
• US senators are close to agreeing on a Russia sanctions bill that could include penalties even if President Vladimir Putin doesn’t send troops into Ukraine.
  • Lawmakers will hear U.S. military, intelligence leaders Thursday with the draft legislation envisaging some sanctions “up front” to punish Russia’s cyberattacks on Ukraine, “false-flag operations” and efforts to undermine Ukraine’s government
• US Undersecretary Nuland says Lavrov & Blinken are likely to meet this week to discuss key issues. Nuland says she sees signs that Moscow is interested in engaging on US responses to its security proposals.
  • Notes US wishes to settle issues through diplomacy and arms control, but is ready in case of an invasion
• On Sunday, Lavrov said Russia wants respectful ties with the US, denying that Russia poses a threat to Ukraine, saying “even the Ukrainian officials say there is no threat. Lavrov noted, however, that Russia does not want to remain in a position where its security is infringed daily
• EU’s Borrell says new EU sanctions package under works could deprive Russia of products it needs to achieve its strategic ambitions and inflict “severe costs on its economy and financial system.”
  • Says the EU is preparing export controls with longer-term effects. UK also said it was in the process of designing a package of measures that would leave the Oligarchs “nowhere to hide”
• Russia says it will move its planned naval drills out of Irish fishing waters that were set for 3-8 Feb. Defense Min Shoigu said as a gesture of goodwill it would relocate its drills.
  • Separately, Russian Defense Ministry announced the start of the deployment of field command and control posts protected by air defense systems as part of an exercise in Belarus.
• German regulator expects a decision on Nord Stream 2 operators’ certificate by late June, pending further documentation from NS2. Regulator says the process will remain suspended until NS2’s main assets and HR are transferred to the ownership of its German subsidiary