New US sanctions on Russia are not expected to severely target the energy sector reported Politico on Thursday, as cited by Reuters. Russian energy giant Rosneft is not expected to be a target of a new sanctions package, Politico continued. 

Market Reaction

Markets remain on tenterhooks watching developments in the war in Ukraine and the world's reaction. Whilst failure to target Russia's energy sector and deal the country currently in the process of invading Ukraine the most severe economic pain may draw ire from some critics pushing for a stronger response, a softer US response may be treated positively by markets. If the Russian energy sector is not targeted, this would lower the potential global inflationary risks associated with the current Ukraine/Russia conflict, lessening one layer of uncertainty.