By Aysu Bicer
ANKARA (AA) - Global markets bounced back on Friday after the start of Russia’s Ukraine intervention and resulting international sanctions, with investors remaining cautious on possible risks created by the Ukraine conflict.
Markets were relatively calmed by the sanctions announced after Russian forces moved into Ukraine on Thursday.
Yet market volatility may continue as the risks related to the issue are still in place.
The US on Thursday added four Russian banks to the sanctions list, including Russia's second-largest financial institution VTB Bank, while Russia's largest bank Sberbank and its 25 subsidiaries were prevented from opening correspondent accounts at US-based banks.
New debt and equity restrictions were also imposed on 13 large Russian enterprises, including Sberbank and Gazprom.
The EU also outlined a five-point plan of "massive" sanctions on Russia following its intervention in Ukraine, with the European Commission president saying: "We will hold the Kremlin accountable."
"We are now targeting 70% of the Russian banking market, but also key state-owned companies, including the field of defense," Ursula von der Leyen underlined, adding that these sanctions will increase Russia's borrowing costs, create inflation, and gradually erode Russia's industrial base.
The UK also announced additional sanctions targeting all major Russian banks, five Russian oligarchs, and more than 100 companies and individuals.
The World Bank has said it is preparing options to provide immediate support to Ukraine amid Russia's military intervention.
The development lender together with the International Monetary Fund will use all its financing and technical support tools for a rapid response, said World Bank President David Malpass in a statement on Thursday.
The German economy grew by 1.8% annually in the fourth quarter, it announced Friday, above expectations.
Additionally, China’s central bank on Friday scaled up its short-term liquidity by injecting a net 290 billion yuan ($45.8 billion) into the financial system via seven-day reverse repurchase agreements.