Sanctions will tip Russia into recession, says Peter Garnry, Saxo Bank Head of Equity Strategy

Sanctions will tip Russia into recession, says Peter Garnry, Saxo Bank Head of Equity Strategy. In the aftermath of the Malaysian Airlines atrocity, the EU is likely to follow with some type of new sanctions against Russia, and Garnry believes these will tip Russia close to recession. Garnry said: If the sanctions are increased it's almost a certainty they will see recession, and depending on how harsh the sanctions will be, you could see various degrees of recession from mild to harsh. Previously Russian equities were already 'extremely cheap', however Russian equities are being affected by negative sentiment and are down 8 per cent, and Garnry sees 1400 as the critical level for the MICEX to stay above. Garnry believes energy will be the safest sector from sanctions due to Europe's dependence on Russian energy, and he believes they will target banks and other financial industries. (VIEW LINK)