Kremlin ‘doesn’t expect’ Trump to end sanctions

8 Nov, 2024 13:47 / Updated 1 month ago
Financial Times reported this week that market traders anticipate a change in policy

The Kremlin said on Friday that it does not anticipate sanctions on Russia will be lifted when Donald Trump assumes the US presidency.

Spokesman Dmitry Peskov was commenting on a Financial Times report this week claiming Western financial institutions are hopeful that restrictions imposed on Moscow will be eased under the new administration.

Asked directly whether the Kremlin has expectations of sanctions relief, Peskov’s response was clear: “No, we don’t expect it.”

Financial Times said Western traders and portfolio managers are discussing the possibility of returning to the Russian market, speculating about a potential shift in Washington’s policy after Trump’s win.

“All the talk this morning is only about how to trade with Russia and whether sanctions will be lifted,” one unnamed portfolio manager was quoted as saying. However, the Kremlin does not put stock in the speculation, according to Peskov.

Russia remains the most sanctioned country globally, a policy that Trump himself contributed to during his first term.

The US and its allies have introduced a record number of restrictions against Russia due to the Ukraine conflict, freezing an estimated $300 billion in assets belonging to the Russian state, as well as sanctioning individuals and entities, including those in the energy, metals and mining, and financial sectors.

Moscow has repeatedly condemned the curbs as illegal, responding with travel bans on Western officials and warning of other mirror measures.

Some high-ranking Western politicians and diplomats have acknowledged that the sanctions on Russia are ineffective and noted that the scope for further restrictions is narrowing.

Speaking at the Economic Club of New York in September, Trump expressed concerns about the broader impact of sanctions on the global economy, specifically mentioning their potential to weaken the dollar’s status as the world’s reserve currency.

The renewed anticipation among Western traders contributed to a temporary boost in Russian markets, with significant gains in major stocks and an uptick in the ruble’s performance.