Sanctions on and off

Daily update

Additional sanctions against Russia are expected from the US, UK and Europe, perhaps as early as today. Living standards in Russia are already expected to plunge (the sanctions impact is likely worse than Covid). “Twitter sanctions” may have pre-empted official action—companies have voluntarily cut Russian links, fearing the wrath of social media.
Russia is to cut the flow of oil through the Caspian pipeline to “repair storm damage.” There may well be storm damage, but it is politically well-timed storm damage. The pipeline carries oil from Kazakhstan, but terminates at a Russian port (so the action complicates global oil supply without necessarily reducing Russian oil supply).
The US and UK will lift sanctions (trade taxes) on one another. US President Trump taxed US consumers of UK steel and aluminum. The UK responded by taxing UK consumers of assorted US goods. Both sides recognize unnecessary taxes are not ideal. UK Chancellor Sunak’s spring budget is expected to cling to as much of the UK’s additional tax revenues as possible.
UK inflation data was largely as expected—the Bank of England is more focused on growth deflation than price inflation. Bailey of the Bank of England, Nagel and Visco of the ECB, and Powell of the Fed all speak today.