The new sanctions extend mainly to Russian deputy ministers, parliamentarians and organizations, including separatist rebel and other paramilitary groups that the European Union believes have helped to fuel the war in Ukraine. However, if it is to believe to the majority of analysts these sanctions are not likely to have any economic impact, and are almost entirely political and symbolic in nature.
What must be bared in mind is that the European Union is Russia's biggest trade partner, and Russian imports from the EU accounted for 123.2 billion euros ($139.7 billion) in 2012, according to the Permanent Mission of the Russian Federation to the European Union. Any major sanctions could have negative ramifications for many European economies, which is making many Europeans hesitant to ratchet things up to the degree where sanctions would be more substance than message.
We believe that this policy of EU will continue, and therefore do not expect that Ukraine crisis will have any major impact in the near future on the markets, despite its importance as one of the major global concerns. Markets will now be more focused on developments of Greek bailout crisis and future ECB monetary steps.
