Britain will stop Russia selling sovereign debt in London after President Vladimir Putin deployed military forces into two breakaway regions of eastern Ukraine, Foreign Secretary Liz Truss said on Wednesday.
The move is in line with other incremental steps Western countries have taken this week to punish Russia for its actions in Ukraine, stopping short of comprehensive sanctions threatened in case of a large-scale assault. On Tuesday, Britain added to its sanctions list five small Russian banks and three Russian billionaires already sanctioned by the United States.
With the world's fourth largest foreign exchange reserves, of over $630 billion, and Brent crude at nearly $97 a barrel, Russia is unlikely to need to sell large amounts of foreign-denominated debt in the near future. Putin on Monday recognised two Russian-backed regions in Ukraine after an address in which described modern Ukraine as an artificial construct that threatens Russian security.Western intelligence agencies are trying to work out if Putin's plan is merely to formalise control over the two rebel regions or launch a much larger assault on Ukraine.
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