“Markets around the world are coughing up gains on fears of how Russia might respond to the latest round of Western sanctions, and on nasty data out of Europe.
The Wall Street Journal’s Patrick O’Connor reports that Russia may be considering restricting parts of its airspace to Western airlines, which could significantly drive up the cost of flying. O’Connor cites a Russian newspaper report, while Moscow has so far denied that that is an option.
But that they will respond is not in doubt. “The government of Russia has already proposed a series of retaliatory measures against the so-called sanctions of certain countries,” Russian President Vladimir Putin said recently according to O’Connor. “I think that in current conditions, with the goal of protecting the interests of domestic producers, we could certainly think about that,” he added.
Russia has also now amassed 20,000 troops on the Ukrainian border after declaring the eastern part of that country to be on the verge of a “humanitarian disaster.”