Mohamed El-Erian, who left investment firm Pimco earlier this year, warned on Monday in an interview with CNBC that the economic consequences of a conflict with Russia could worsen “if sanctions go from targeting individuals to targeting sectors”.
The sanctions against Russia have so far been limited to high-profile individuals, and U.S. President Barack Obama said on Monday he’s ready to levy new economic sanctions on persons and companies.
El-Erian said in the interview with CNBC that sanctions against sectors such as energy and finance would make a greater impact on Russia’s economy rather than just targeting individuals. He explained that for Europe specifically, a slowdown in Russia would have the biggest consequences because of the two regions’ close trading relations. “We live in a global neighborhood.
That’s why this decision [on sanctions] is so hard,” he said.
Source: Market Watch
