Who knows – what’s in Putin’s mind?

This is the kind of comments and thinking, going through global politics today.

What is Vladimir Putin’s latest strategy is?

Russian president, Vladimir Putin, took everyone by surprise by announcing that Russia will be withdrawing troops from Syria, which basically announcing Russia ceasing from active participation. Recently both sides have agreed to temporary truce, possibly so that politics can play part in it.

Political analysts are suggesting this is Vladimir Putin’s strategy to bring defiant Syrian President Bashar al-Assad to the table. This is probably a move to Begin a political transition talks. A push towards peace to end the five year old. Well Damascus has announced that there is no rift with Russia and the decision has been planned for quite a while now.

Russia in last September, changed the balance of power in Assad’s favor, which is likely to put Russia in a comfortable position. Moreover it is likely to stay ready even after today’s announcement to intervene as necessary if the truce gets violated.

Other than these political games Russia has much to gain economically from this. Immediately a reduction would reduce incremental cost of war and avoid a lot more of the future.

But the biggest of them all is “SANCTIONS”.

Major cause behind European Migrant crisis has been Syrian war. So is best for the Europeans to end the war as they face major political backlash. So Russia may get the sanction removal favor.

As of now there exists a strong possibility that EU sanctions, which need approval of all members for renew in next few months, may not earn full consensus.

Trade idea –

  • Fundamentally buying Rouble and Rouble denominated assets likely to provide higher returns over next 18 months.

The material has been provided by InstaForex Company – www.instaforex.com