WASHINGTON DC – The US House of Representatives approved an amendment to the draft military budget for the fiscal year 2020. The document provides for the possibility of introducing sanctions against Russia’s sovereign debt and its goal is to hit the ruble and the country’s economy in general, said the economist Dmitri Abzalov.
The expert believes that the Ministry of Finance of Russia will have to correct its loan program and budget project, and will quickly seek new funding channels. In addition, with this move the US establishment seeks to thwart the resumption of relations between Washington and Moscow that seems to have started at the G20 summit.
Faced with the possible threat of sanctions, a large part of the investors began to lose interest in the Russian debt, the expert said.
“Usually the pressure exerted on the bonds is accompanied by that which affects the national currency, although it is not the most severe proposal that was addressed by US politicians, investors will react to it in a rather painful way,” he added. the economist to the Russian newspaper Vzglyad.
According to Abzalov, when there is a depreciation of the national currency, the central bank as a rule begins to manipulate the interest rate. Previously the main financial regulator of Russia had begun the process of lowering the interest rate that influences the value of credits.
“The decision of [the US House of Representatives] may lead to the reduction of the interest rate scheduled this year will be questioned, and Russia will have to modernize its external loan program, as a result, non-resident investors will experience problems when buying Russian bonds,” Abzalov concluded.
The authors of the bill approved by the US House of Representatives were Democrats Brad Sherman and Maxine Waters.
Sherman explained that the new amendment involves the introduction of “serious sanctions on Russia’s sovereign debt and provides that not a single US citizen can not conclude the respective agreements.”
According to the US politician, Congress needs a serious mechanism to punish Russia for what it “did with the previous elections” in the US and “not allow it to interfere in the future.”
This project was approved despite the fact that Moscow has repeatedly rejected Washington’s accusations about its intervention in the US electoral process.
It should be recalled that the co-author of the project, Maxine Waters, rose to fame not only in Russia, but in many countries after his conversation with telephone pranksters Vladimir Kuznetsov and Alexei Stoliarov – better known in networks such as Vován and Lexus. At the time of contacting the policy they pretended to be Ukrainian Prime Minister Volodimir Groisman and told Waters about the Kremlin’s alleged interference in the internal affairs of Limpopo – an imaginary country.