Yahoo! News
Russia ‘will be more isolated than ever’ from the world, strategist says
Brian Sozzi, Anchor, Editor-at-Large – February 22, 2022
Russia’s actions against Ukraine may lead it to being even more isolated from the rest of the world, which could have damaging effects on its economy, warns one veteran policy strategist.
“They will be more isolated than ever. Countries will not want to do deals with them. I think the pariah label will stick for quite a while,” said Greg Valliere, AGF chief U.S. policy strategist, on Yahoo Finance Live.
On Monday, Russian President Vladimir Putin ordered the deployment of Russian troops to two breakaway regions of Ukraine. The move — seen by the West as a provocation — came after Putin recognized their independence.
Countries wasted no time implementing fresh sanctions on Russia, providing a taste of what could happen economically should Putin invade Ukraine.
U.K. Prime Minister Boris Johnson unveiled a package of sanctions on Russia Tuesday morning. Germany halted the important Nord Stream 2 gas pipeline that sends Russian natural gas to Europe.
“I think that much of Europe would continue to view Putin with great anxiety,” added Valliere.
U.S. President Joe Biden will impose new sanctions on trade and financing in the two territories recognized by Putin, CNN reported.
Biden is expected to address the situation in public remarks today at 2:00 p.m. ET.
All three major stock indexes fell as traders assessed how the situation will impact energy markets and Fed policy. The tech heavy Nasdaq Composite fell the most by afternoon trading, off by about 1%.
“The global economic fallout could be contained if subsequent sanctions on traded goods and services from Russia stay limited. Russia is a major exporter of energy and industrial metals like platinum, palladium, titanium, nickel, and aluminum, as well as grains. However, any sanctions on these commodities and products would likely lead to upward inflationary pressure in markets, where inflation is already at multi-decade highs,” explained Truist co-chief investment officer Keith Lerner.