The Day at a Glance | March 7 2022

The Top

*Ukrainian and Russian officials will have a third round of negotiations; it`s unlikely they will reach an agreement.

*The war will continue until Ukraine meets demands; Vladimir Putin.

*U.S. House of Representatives considers approving a law that would ban oil and energy imports from Russia.

*Russia assures that the payment of sovereign bonds to foreign investors will depend on the West`s withdrawal of sanctions.

*China`s National People`s Congress set a 5.5% GDP target rate of growth for 2022.

*Chinese exports grew more moderately in February (16.3% annual) in light of stabilization in global demand.

Economic environment

Sanctions on imported oil from Russia. Reports published during the week confirmed that Biden`s administration seeks to restrict oil and energy imports from Russia. The United States and its allies were supposed to impose an embargo on Russian energy exports, but Europe decided not to do so because it would bring great consequences at a regional level. Nevertheless, the United States still considers imposing a unilateral embargo, and reduce Russia`s crude oil based income. U.S. government officials are discussing this matter with leaders of the gas and oil industry – and the possible consequences it could bring – before announcing any measures. In the House of Representatives, a bill that would stop energy imports from Russia and continue isolating it from the global economy is being discussed. The impact of these measures on the United States would be limited since Russia only represents 8% of crude oil imports (according to 2021 figures). However, markets are concerned about other countries following the U.S., which would lead to Russia (one of the world`s main crude oil exporters) to be excluded from global production and worsen energy supply issues all around the world. Oil prices exceeded $130 dollars per barrel during the night before receding as Europe was doubting its participation in said sanction.