The Day at a Glance | April 5 2022

The Top

*The EU will propose suspending coal imports from Russia; including gas and oil sanctions is still being discussed.

*The US Treasury Department will block Russian debt payments in bid to raise pressure on Moscow.

*France will start investigations of possible war crimes against French citizens in Ukraine.

*The Peruvian government declared a state of emergency in the capital of Lima in light of violent protests due to inflation.

*SCJN will resolve the unconstitutionality of the Electricity Industry Law, which benefits the CFE regarding the distribution of energy in Mexico.

Economic environment

New sanctions. As part of a new package of sanctions to be imposed on Russia, the European Union is considering prohibiting Russian coal imports and impeding Russian trucks and ships from entering the region. The measures have still not been fully stipulated as discussions on the matter are still being had. Countries like Germany and Hungary seem to have made their stances more flexible with respect to avoiding sanctions on Russian energy and have started talks with the EU regarding the possibility of prohibiting coal imports through a gradual process. Russia provides Europe with approximately half the coal it needs for power generation. Banning oil and gas imports is still being debated. Energy prices are on the rise this morning because of these events. Additionally, the EU will propose increasing restrictions on Russian tech exports in the defense sector and equipment in the liquefied gas industry. The EU will also participate in collecting evidence of potential war crimes in the Ukrainian war. Regarding the United States, the Treasury Department assured that it will stop Russia from paying debt through US accounts. This measure intends to bring Russia´s sovereign debt closer to default. Russia had successfully made payments through accounts it has with US banks in recent weeks; these transactions will now be banned by the Treasury. This measure seeks to force Russia´s government to spend its dollar reserves, which are held in Russia.