Russian President

Vladimir Putin

on Monday decreed several measures to counter the fall of the ruble, following Western sanctions over the invasion of Ukraine, including a ban on residents transferring currency abroad, the Kremlin announced.

According to a decree published on the Kremlin's website, Russian residents

will be prohibited from transferring foreign currency from Tuesday.

In addition to this measure, Russian exporters will also be forced to convert 80% of their income earned in foreign currencies into rubles from January 1, 2022.

The announcement of these measures coincides with an attempt by the government to

strengthen the defenses of the

Russian economy against the sanctions announced by Western countries in reaction to Moscow's invasion of Ukraine.

The United States, members of the European Union and other countries announced the exclusion of some Russian banks from the

Swift international banking payment

system and any transactions with the Central Bank of Russia.

This last measure seeks to neutralize part of the gigantic foreign exchange reserves that Russia has accumulated in recent years, mainly thanks to its income from oil activities.

The sale of foreign currencies is one of the main tools used by countries when they want to support their national currency.

However, at the opening of the markets, touching minimums, according to the France Press agency.

Western sanctions prompted the Russian Central Bank to sharply raise its base interest rate to 10.5 points (20%) to limit inflation.

Oil continues to skyrocket

Brent oil for delivery in April continued to trade

above the $100 barrier on the

London futures market on Monday as a result of the intensification of the Russian offensive in Ukraine and after the imposition of more sanctions on Russia.

The invasion initiated by Russia - the world's second largest oil producer after Saudi Arabia and the world's largest exporter of natural gas - today continues to have a direct effect on European benchmark crude, which was trading at $100.10 at 4:30 p.m. GMT, increasing almost 3% compared to the previous day.

Since the conflict broke out last Thursday, Brent has hit highs not seen in seven years, although it has not yet reached those recorded in 2008, when it exceeded 132 dollars a barrel.

Like last week, crude oil showed a marked upward trend during the day, without going below 100 dollars, in which it rose 4% compared to Friday's close, driven by fears that the worsening of the crisis could alter supplies, according to the Efe news agency.

THE NEW SANCTIONS ACCENTUATE THE FEARS

The imposition of new - and harsher - punishments on Russia by Western countries over the weekend has only heightened those concerns.

In this sense, the Central Bank of Russia today kept the stock market closed until at least tomorrow

after the ruble collapsed by almost 30%

due to the sanctions on several Russian banks and the exclusion of some of them from the SWIFT international interbank communication system.

Asked by Efe, Craig Erlam, an analyst at the consulting firm OANDA, said that the effects of the new sanctions "have been more evident, clearly, in the Forex markets, where the ruble has fallen more than 30% to historical lows," while while predicting that these "will weigh heavily on the economy.

According to this expert, only a "significant de-escalation could change" the direction the economy is taking and if the talks -scheduled for today- between Russian and Ukrainian officials "end badly", it will be possible to see "how oil continues its rise by taking into account Markets are factoring in a protracted fight in Ukraine and the risk of supply disruptions."

For her part, the expert Victoria Scholar, head of the Head of Investment consultancy, told Efe that the rise in oil prices of

more than 4%

is due to the fact that "President (Russian Vladimir) Putin has put the nuclear weapons on "special alert", which "has further intensified tensions between Ukraine and Russia".

"Putin's decision to put nuclear forces on 'high alert' status has also created nervousness about the impact on supplies," he said.

Regarding the aforementioned sanctions, specifically the fact that the United States and Europe have withdrawn Russian banks from the SWIFT system, the analyst believes that "there is concern about the possibility of more supply disruptions at a time in which the imbalance between demand and supply already favors a bullish outlook for oil."

COMPANIES REACT

In this context of uncertainty, the British oil company

BP

announced this weekend that it is preparing to divest its 19.75% stake in the Russian giant

Rosneft

, as a result of the Russian incursion into Ukraine.

The company had come under heavy pressure from the London government to cut its ties with the Russian oil company since the invasion of Ukraine.

According to

BP

in a statement, the Russian attack has meant a "fundamental change" in the way the company could operate in that country.

In this regard, Elam points out that "BP has shown the political pressure to which companies will be subject to break their ties with Russia, especially where there is a shared interest with the Kremlin."

For its part, Scholar highlights that

"the 25,000 million dollars that BP will lose

by leaving Rosneft highlights the stress faced by companies with great exposure to Russia."

"It is becoming clear that attempts by the US and Europe to disassociate from Russia and freeze its economy

will have significant consequences

for Western companies as well. However, the downside for BP is limited to strong gains in oil prices," he reflects. .

Meanwhile, the expert Susannah Streeter, from Senior Market Analyst, Hargreaves Lansdown, highlights that "BP is leading the way by opening a new channel of censorship, with a type of action that has been followed by (in Norway the energy company) Equinor".

It is estimated that

a third of the oil and 40% of the gas that Europe receives comes from Russia

, mainly through oil and gas pipelines that cross Ukrainian territory.

The Russian military incursion and the new sanctions that Western countries have imposed on the Kremlin may disrupt the supply of raw materials and agricultural products from Ukraine and Russia.

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