Wednesday, November 29, 2017

Russia: You toucha da gold, we breaka da face

In the ongoing sanctions war against Russia, the U.S. to date has been very careful in limiting its economic restrictions to a few oligarchs and corporate business entities.  But as the Eurasian power grows stronger ties with China to create an ever increasing threat against America's dominance through dollar hegemony, the real war begins should Washington decide to impose freezes on Russian assets the same way they did against Iran for nearly a decade.

And in response to this potential threat, Russia's Finance Minister Anton Siluanov stated on Nov. 28 that any confiscation or freezing of currency or gold assets by the United States would be considered an act of financial terrorism and war.

Russia's federal budget is prepared for the possible toughening of US sanctions. However, if they include the seizure of Russia's foreign exchange reserves, it would be regarded as a "declaration of a financial war," the Russian finance ministry warns. 
"If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism," said Russian Finance Minister Anton Siluanov. 
According to Siluanov, the budget takes into account the risk of income shortfalls. The budget is based on oil prices at $40 per barrel, which is almost a third lower than the current price. 
The budget "has a margin of safety in case of restrictions and sanctions." It also includes losses incurred by a probable ban on investment in Russian government bonds for foreign funds. The US Treasury is currently considering such penalties. 
"If we did not have a margin of safety, then it would be easy to weaken us. And then, our so-called friends would say – if you want to get help from the International Monetary Fund, you must do this and that," said Siluanov. 
If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said. He added that he considers such a scenario unlikely. – Russia Today

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