Don't buy Russian stocks, White House says in Crimea dispute

WASHINGTON, March 18 Tue Mar 18, 2014 6:48pm EDT

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WASHINGTON, March 18 (Reuters) - In an unusual move, the White House on Tuesday recommended that investors avoid Russian stocks as the political rhetoric heated up in the dispute over Moscow declaring Ukraine's Crimean peninsula part of Russia.

"I wouldn't, if I were you, invest in Russian equities right now, unless you're going short," White House spokesman Jay Carney said, half smiling, at a press briefing.

Stressing that the United States was preparing a new round of sanctions, Carney told reporters that the long-term impact of Russia's bid to annex the Crimea region of Ukraine would have an impact on Russia's economy.

"They will also incur costs because of the sanctions that we and the EU have imposed," Carney said.

The United States and the European Union imposed travel bans and asset freezes on a handful of officials from Russia and Ukraine accused of involvement in Moscow's seizure of the Black Sea peninsula, most of whose 2 million residents are ethnic Russians.

Russia's stock market was hammered in the run-up to the weekend referendum in Ukraine's Crimea region in which voters overwhelmingly said they wanted to join Russia.

However, the market rallied on Monday and gained another 2 percent on Tuesday and the rouble rose after Russian President Vladimir Putin said Russia would not seek to further divide Ukraine.

Investors noted the initial sanctions did not target businesses or executives, but the White House has signaled a fresh round of sanctions could hit some on the business side.

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Comments (3)
The fake Ukrainian “government” needs to shut up. They’ve had possession of stolen property for 60 years. Crimea was not the USSR’s to give away.

Mar 18, 2014 7:02pm EDT  --  Report as abuse
grazor50 wrote:
O great! The guy that swore you could keep your old health insurance policy, is now trying to tell everyone how to invest. The guy that invested trillions of taxpayer dollars to stimulate the economy, that if he had just given that money straight back to the people instead of all of the bankrupt “go GREEN companies”, we would all have money in our pockets instead of being ripped off and the company exec. walk away with millions. Better reread the future outcomes, CHINA now says that the people’s vote is in, they support PUTIN which is the people’s will,, we had better hope that CHINA don’t start sanctions ,, we owe CHINA TOO much money to ever get out of debt!

Mar 18, 2014 7:16pm EDT  --  Report as abuse
Nondi wrote:
That anyone in the White House made an investment recommendation—regardless of the circumstances—is certainly a breech of ethics.

Mar 18, 2014 9:45pm EDT  --  Report as abuse
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