Economics
Aiming at Putin With Sanctions, U.S. May Hit Emerging World
- Ruble sank to 2016 low as fears over fresh penalties returned
- New wave of EM pain seen if comparative safe harbor targeted
Elvira Nabiullina
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
If U.S. sanctions flip Russia to basket case from haven, a fresh stampede from emerging markets could be in the cards, according to some investors and analysts.
On Thursday, Russian officials in Moscow basked in the glow of their balance sheet and the central bank chief gave a speech at the International Monetary Fund in Washington on her successful experience managing past crises. Meanwhile, government bonds and the ruble breached the lowest levels in more than two years.