The Russian metals sector may be a target for future U.S. sanctions if President Vladimir Putin escalates a growing battle with the West through military action, former U.S. government officials told S&P Global Market Intelligence.
The Biden administration on April 15 expelled 10 Russian diplomats from the U.S. and banned U.S. banks from buying sovereign bonds issued by Russian institutions, part of a swath of sanctions in response to Russia’s attempts to influence the 2020 U.S. presidential election, its decision to gather troops on its border with Ukraine, and an alleged global cyber espionage campaign.
Following the sanctions, Russia declared it would pull troops back from the Ukraine border and attended a global summit on climate change hosted by the White House. Afterward, Russia sent warships to the Black Sea for a military maneuver and said sections of the area would be temporarily closed to foreign warships.
“Russia is likely to remain a disruptive power for much or all of the next two decades even as its material capabilities decline relative to other major players,” according to a report the U.S. Office of the Director of National Intelligence release in April.
Among Russia’s advantages on the world stage, the report noted its energy and mineral resources.