Oxford Economics: Expanded US sanctions might slow down the Russian economy by 0.4 percentage points in year

New US sanctions could lead to a slowdown in the growth of the Russian economy by 0.4 percentage points a year, according to a survey research firm Oxford Economics.

President Donald Trump previously signed the law, proposed expansion of a number of sectoral sanctions against Russia's economy. He, in particular, reduces the maximum period of financing for Russian banks under US sanctions, up to 14 days, oil and gas companies - up to 60 days (previously - 30 days and 90 days, respectively), corrects and imposes a number of new restrictions on the supply of oil and gas technologies and equipment. Separately stated that the US would continue to oppose the project "Northern stream - 2".

"Recent US sanctions can be reduced by 0.4 percentage points the long-term potential growth rate of the Russian economy, keeping them within the next decade at a level of less than 1%. This is mainly due to an increase in borrowing costs and new sanctions against the transfer of technology, especially in the energy sector, thus depriving the economy of much-needed investment. Short-term impact is likely to be limited"- said in a research analyst.