Economy in crisis: Russia hit hard by international sanctions | DW News


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Economy in crisis: Russia hit hard by international sanctions | DW News



Russia’s escalating war in Ukraine has prompted unprecedented economic sanctions against the country. Over the weekend, Russian banks were further cut off from the international financial system. Some have been excluded from the SWIFT payments system while moves have been made to stop the Russian central bank using its $630 billion (€562 billion) of foreign reserves. The sanctions are by far the most severe to have been leveled at Russia since the country invaded Ukraine last week. The country’s increasing financial and political isolation is already causing significant consequences for the economy, the 11th-largest in the world by GDP.

Russia’s currency, the ruble, fell by around 30% to record lows after the latest sanctions, although it did recover a little in recent hours. That compounds massive losses already experienced last week. In response, the Russian central bank has made an emergency decision to hike interest rates from 9.5% to 20%. The bank has also temporarily blocked the sale of securities held by foreigners. The currency collapse has led to long lines outside ATMs across Russia, with fears rising over further plunges in the value of the ruble. On Monday, the central bank announced that the Moscow Stock Exchange would not open. It also said in a statement that it has increased interest rates to support “financial and price stability and protect the savings of citizens from depreciation.”

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#Sanctions #Russia #SWIFT

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20 Comments

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  1. The russian people had better get busy and remove putin from power. Things will become unbearable in a short time.
    I don't feel sorry for them, since putin is THEIR fault. I feel bad for the Ukrainians. They've been suffering more than anyone while the world watches. Between russians and Ukrainians, I would save the Ukrainians. It's time to call the insane sociopath's bluff and create a no fly zone over Ukraine.

  2. Travel bands? But what if the russians who disagree with or hate Vladimir and or dont want to be associated with that man so they try to move countries to purely get away from that fanciest?

  3. I am an ordinary resident of the Russian Federation.

    70% of Russians keep savings in dollars (that is, they buy foreign currency and keep it under their pillows).

    The sanctions helped us a lot. Now the dollar costs 120 Russian rubles (and this is almost 2 times more than it was before)

    Personally, this allowed me to purchase construction materials for the construction of another house.

    We Russians are very smart people. We do not keep savings in rubles.

    Sanctions were imposed against us for the sale of products from Russia to other countries.

    Now, since our firms cannot sell to other countries, they sell goods cheaper in the domestic market.

    We have reduced prices for food and building materials.

    Yes, electronics prices have gone up. But most Russians already have computers and TVs and tablets and phones and household appliances (refrigerators, washing machines, etc.). Even among the poorest segments of the population.

    50% of young Russians know how to reinstall and flash operating systems, how to solder, repair any electric motors and make any minor and medium repairs.

    20% of Russians know how to program microcontrollers and know radio engineering.

    China can provide us with any radio products (capacitors, diodes, transistors, microcontrollers, etc.) at the lowest price.

    People really stand in queues at banks. But people do not withdraw rubles. People, on the contrary, put their rubles into an account, exchange rubles for currency (dollars, euros, yuan), withdraw the currency and keep it, having fun watching how their money grows just lying under the pillow.

    Personally, my friends and I express great gratitude to the entire European Union and America for the sanctions imposed!

    It is especially cool that they imposed sanctions against the oligarchs. We Russian people do not like too rich class of people. In our ranks, there is still a concept from the Soviet Union "From each according to his abilities, to each according to his needs." We are very glad that the accounts of billionaires from Russia have been blocked. For ordinary people, this is a great joy!

    Well, at the expense of Ukraine I will say the following:

    Our army was forced to enter Ukraine, as Ukrainian nationalists began to kill civilians in Donbas and Lugansk. In addition, the Ukrainian Army pulled together a large army in the area of ​​​​the city of Kramotorsk and Izyum, and was about to attack itself in order to exterminate the inhabitants of the Luhansk and Donetsk People's Republics.

    We won't allow it. The Russian Federation, as the legal successor of the Soviet Union, will always be for peace and justice. We will cleanse Ukraine of nationalists, and in the future we will probably accept it as part of the Union State.

    The NATO bloc promised Russia not to expand to the east, but it expanded to include Poland, Romania, and so on.

    I hope we will return the lost territories of the Soviet Union and the GDR (part of Germany).

    I am sincerely sorry that such TV channels blatantly lie to ordinary citizens of Europe and America.

    Exposing us Russians as bad. We are good, and we are for a peaceful life! That is why we are restoring peace on the territory of Ukraine, and thus preventing conflict on the territory of the Russian Federation.

    If you have questions, ask. I will answer and show you everything.

    By the way, who cares.

    Our rice and buckwheat cost $0.5 per 900 grams.

    Eggs of the first category 0.5 dollars for 10 pieces.

    Chicken meat 1.4 dollars per 1 kg.

    High grade bread 0.2 dollars per 1 loaf.

    Pasta 400 grams from baking flour 0.1 dollar.

    Pasta from durum wheat 0.2 dollars.

    Tomatoes have become more expensive and now cost $1.4 per 1 kg. Cucumbers are about the same.

    Land 1 weave in an average city of 400,000 Russian rubles).

    Land in the village 300,000 Russian rubles for 7 acres.

    Medium size potatoes $0.25 per 1 kg.

    After we denazify Ukraine, I think prices there will also fall to ours.

  4. 1:43 I dont get it. Russia can buy everything (cpus, microchips etc,) from China no problem, isnt it? Also Russia can sell all oil to China. As long as Russia is Chinas partner it is quastion of adapting to new situation in market.

  5. Sanctions? These are no sanctions, just a "special economic operation", according to the New Russian Dictionary. Welcome to North North Korea.

  6. History repeats itself:

    1922: USSR currency reform of 1922 exchanged 10,000 old rubles for one new ruble

    1923: The next year brought yet another reform, with one new ruble replacing 1,000 of the 1922 rubles

    1924: Another new ruble replaced 30,000 of the 1923 rubles. By the end of the currency reform, the 1924 ruble was worth 1/5,000,000 of a 1922 ruble

    1997: The Central Bank Russia lop three zeros off the ruble and issue new notes reflecting the redenomination. Overnight, 50,000 rubles will turn into 50

    2022: Another reform is coming soon?

  7. Russian financial sanctions, the wealthy and privileged, and even allies, including the U.S. and EU countries, participate in confiscating yachts anchored in the sea to confiscate assets hidden in European countries and tax havens, but Russian celebrities hide their assets as money laundering means.

    High-rise apartments or mansions on the coast of Lisbon, Madrid, Portugal, Spain, Vancouver, New York, and Manhattan Upper East Side, Russian celebrities and politicians purchased bribery or assets through European tax evasion detours and money laundering under the name of a large mansion in San Diego, California, Santa Clara, Los Angeles.

    It's not just from Russia. There are many people from Azerbaijan, the Middle East, and even China, which is the most controversial issue. While the Chinese government has already suspended the pandemic declaration in collusion with the WHO, Chinese students and permanent resident citizens have all colluded to buy masks, alcohol and protective clothing and sent them to mainland China. There are also many immigration frauds that purchase real estate in the United States, Australia, Canada, and New Zealand under the pretext of immigration and settle down by washing their identity.

    There are cases in which Chinese children who repeatedly wash their assets through Labuan, Macau, Malaysia, and others, donated money to Ivy League universities such as Harvard and Yale, where they want to enter in a few years, as well as public private universities in Chicago and California.

    Even though the university knows about it, it often overlooks it. In addition to Russia, there are many related cases of children of celebrities called investors from Southeast Asian countries other than East Asia, Korea, and China.

    If you used the university management fund with donations from unknown sources, you should be ashamed and pathetic. Under the guise of justification and fairness, students from certain countries, such as China, Russia, the Middle East, and Southeast Asian countries, who make their financial assets through money laundering at the same time as their status.

  8. Nato: oh no Russia is gonna cut gas, oil and material from us. guess Looks like Iran need freedom and democracy!!( translate to stealing oil and resources) because people suffered their government!!.

  9. For every action there is a reaction. Holding US dollars is increasingly becoming a risky business. If the smart US politicians keep using the dollar as a political weapon by imposing sanctions left and right, the dollar as a worldwide reserved currency will be displaced and financing US deficits will be out of question. It is just a matter of time as all sanctioned and to be sanctioned parties and even allies are day and night figuring out how to replace the dollar.

  10. When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, but there are smart ways to go about it.