Independent Strategy

Russia sanctions – no killer apps

The sanctions announced by the US and Europe are not the sort of killer apps that would stop the Russian economy, if not its invasion of Ukraine, in its tracks. They do not kick Russia out of Swift. They do not stop Russia selling its oil and gas and other commodities, like wheat and aluminium. We have cut back a few of our Russian crisis hedges because of lower global supply disruption. Wheat and energy longs have been reduced by half and gold by a third. The US dollar remains a long and the euro a short — both positions unchanged. Also, EU equities (as well as global, but less so) remain shorts.

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