Following the US midterm election, which handed over the house of representatives to the Democrats, the German banks are bracing for another leg of US sanctions on Russia. Although the US lifted sanctions on Russian business tycoon, oligarch Oleg V.
Deripaska, last month, despite harsh criticism from the Democrats, the German Banks are expecting further sanctions and presumably avoiding the recent lift of sanctions of Deripaska. Since the House of Representatives are now controlled by the Democrats, the US president Donald Trump would not be able to run the administration as swiftly as he had been before the US midterm election, and which in turn could lead to further sanctions on Russian businesses.
However, last December, the Association of German Banks had been quoted saying that the impending sanctions would be directed to the Russian financial institutions, and which could also impact the global markets. According to a document of the Association of German Banks seen recently by a press agency, “The proposed laws would no longer just hit Russian presidents and oligarchs with close ties to Putin, but would de facto impose an embargo on the Russian Federation.
” Meanwhile, the German banks have been found shoring up on new sanctions on Russian and multiple analysts had been quoted saying that a newly imposed sanction would not only affect the German financial institutions like Deutsche Bank, but also it could result in a caustic corrosion on major US banks such as Bank of America, JPMorgan Chase & Co., and Goldman Sachs.