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Sanctions don't spell catastrophe for Russia, expert says

Wednesday, July 30, 2014 - 01:24

An economist says new sanctions aren't catastrophic for Russian economy while Muscovites appear resilient to measures. Nathan Frandino reports.

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One by one, Russia's state-run banks are feeling the brunt of new sanctions. The U.S. and E.U.-imposed measures are designed to hurt the Russian economy, but economist Alexei Devyatov says the impact will be minimal. SOUNDBITE: Uralsib Chief Economist Alexei Devyatov saying (Russian): "The sanctions' effect is not going to be catastrophic for the Russian economy. At this point, there is huge uncertainty regarding the companies that will be affected by sanctions and what are the exact transactions that will fall under restriction." The E.U. and the U.S. unveiled the sanctions Tuesday are punishment for Russia's Ukraine policy. The measures also restrict sales of arms and equipment for Russia's oil industry. But the Kremlin says the sanctions as "destructive and short-sighted." Still, Moscow residents appear resilient. Some are even optimistic. SOUNDBITE: Moscow resident Olga saying (Russian): "We lived in tougher conditions, and our lives were peaceful and friendly. Who cares if we have just one fur coat and not three?" And Russian markets are unmoved, investors brushing off the sanctions as far less severe than feared.

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Sanctions don't spell catastrophe for Russia, expert says

Wednesday, July 30, 2014 - 01:24