Russian expert comments on US Treasury Department report

Saturday, 03 Feb, 2018

The US Treasury has warned that imposing new sanctions on Russia's sovereign debt market could cause massive repercussions for the US, a new unclassified document warns.

"The magnitude and scope of consequences from expanding sanctions to sovereign debt and derivatives is uncertain and the effects could be born by both the Russian Federation and USA investors and businesses", the memo said.

The report was submitted to Congress on January 29, and obtained by US media on February 2.

Treasury Secretary Steven Mnuchin told senators at a hearing on Tuesday that the reports would be followed by fresh sanctions on Russian Federation as punishment for its interference in the 2016 presidential election.

Such sanctions could suppress Russia's economic growth, strain its banking sector, and prompt "Russian retaliation against US interests".

Mnuchin has faced criticism over how his department handled the billionaires list, which contained the names of 210 people. The Russian rating agency Expert RA believes that the report prepared by the US Treasury Department on the adverse impact of sanctions against the Russian sovereign debt on the global financial market is a neutral event for markets, chief economist of Expert RA Anton Tabakh told TASS on Friday.

Separately, on January 30, Treasury released updated FAQs to address questions related to the report's release.

Reps. Marcy Kaptur (D-Ohio) and Brian Fitzpatrick (R-Pa.), co-chairs of the Congressional Ukraine Caucus, released a joint statement expressing disappointment with the Trump administration's decision to not implement the strong sanctions called for by Congress when it passed bipartisan sanctions legislation past year.