'Russia may bankrupt SA.' Dire warnings after US fires warning shot over AGOA | Business

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Following arguably the strongest US threat yet against South Africa over its relationship with Russia, economists have warned that South Africa risks harsh economic pain – which may even bankrupt the state. | HelenaWasserman Cartjoff

Photo by Mikhail Svetlov/Getty Images

Following arguably the strongest US threat yet against South Africa over its relationship with Russia, economists have warned that South Africa risks harsh economic pain – which may even bankrupt the state. that this year's African Growth and Opportunity Act summit be moved away from South Africa and warned that the country is in danger of losing its AGOA status.

Early on Tuesday, the rand was trading at its best level since it crashed a month ago. The currency has been slumping after the US accusation that Russia was supplied with weapons and ammunition in South Africa and confirmation that Russian President Vladimir Putin will have diplomatic immunity if he visits the country for the planned BRICS summit in August.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month.

 

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