First thoughts on what the US airstrike in Syria means for Russia

Russian equities and its currency have fallen following US airstrikes on Syria early this morning, reflecting fading hopes that US-Russia relations will normalise and that sanctions might be lifted. That said, the chances of an end to sanctions already looked slim, and the Russian economy’s recovery is likely to continue irrespective of whether these measures remain in place. Moreover, barring a dramatic turn of events, it seems likely that oil prices will remain the most important driver of the ruble.