Futures on U.S. stock indices collapsed at the start of trading on Monday, February 28, amid sanctions pressure of the collective West on Russia. The Dow Jones futures contract is down 1.4 percent. The S&P500 and Nasdaq are losing 2.09 and 2.31%, respectively. Investors are evaluating the effect of sanctions on the Russian economy as well as the possible impact on the economy of the European Union and the United States.
Oil quotes opened with growth. But it mainly concerns West Texas Intermediate (WTI) futures, futures on which are adding more than 5.343%. North Sea Brent contracts were not so dynamic (+1.02%).
Over the weekend the United States and the European Union imposed a raft of anti-Russian sanctions which are believed to be the largest in the history of relations between the countries. Restrictions were imposed on imports of high-tech electronics and computers, avionics and aerospace components.
The closure of air links with Russia continued. Since February 27, Finland, Austria, Denmark, Iceland, Germany, Sweden and France announced additional closures for Russian aircraft and airlines.
A number of Russian banks were literally put under sanctions. Assets and accounts in U.S. currency of VTB, Otkritie, Sovcombank, Promsvyazbank and Novikombank have been completely blocked and isolated from the dollar system. The Apple Pay and Google Pay payment services are disabled for them. Sberbank, the largest credit institution in the Russian Federation, was not spared from the sanctions. But a more lenient sanctions regime has been prepared for it. The assets of Sber are not frozen, but Sber is given 30 days to close all correspondent accounts in the United States.
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The United States, the UK, the European Union and Canada plan to disconnect sanctioned banks from the international payment system SWIFT. In addition, the Bank of Russia is preparing to impose restrictions directly on it in order to deprive it of access to international reserves.
Futures on the Dow Jones crashed at the start of trading on February 28, 2022. Photo: Business Insider
