Millions of Russian citizens are already feeling the effects of their nation’s invasion of neighboring countries Ukrainewith long queues forming outside the banks as people struggle to withdraw money.
As rockets and shells rained down on Kyiv and Kharkiv, Muscovites were seen standing in huge queues, reminiscent of Soviet bread and meat queues as the ruble fell to its lowest levels.
The United States, Great Britain, Europe and Canada announced a number of new sanctions in recent days – including blocking some Russian creditors’ access to the international payment system SWIFT – while the United States effectively blocked Russia’s central bank from dollar transactions.
This sent the Russian economy into free fall as the ruble fell 30 percent against the dollar, forcing the central bank to raise interest rates to 20 percent yesterday as regulators refused to open the Moscow Stock Exchange this morning.
“I feel like I’m back in the USSR,” admitted Anatoly, a 46-year-old space scientist as he stood stoically at line 152 at an ATM queue with a hole in the wall that allegedly distributed valuable euros and dollars.
It was in a brilliant shopping center from the Putin era, resembling the West everywhere and one of hundreds in modern Russia.
But he said: “It looks like the old Soviet shoe or sausage line when we were completely cut off from the West. Didn’t we learn anything?
Millions of Russian citizens are already feeling the effects of their nation’s invasion of neighboring Ukraine, with long queues in front of banks as people struggle to withdraw money
Huge queues are seen in a Moscow mall as Muscovites try to withdraw hard currency as the ruble falls
As rockets and shells rained down on Kyiv and Kharkiv, Muscovites were seen standing in queues, reminiscent of Soviet bread and meat queues, as the ruble fell to its lowest levels.
This photo shows people queuing for sausages in a shop in the Soviet Union in the 1980s.
“We were going to Europe and America, but Putin brought us back to our miserable Soviet past, which we had 30 years ago,” Anatoly said.
His goal was to withdraw as many dollars or euros as possible from ATMs before the ruble fell even lower.
Currently, the ruble is about 133 per pound, although yesterday it fell to 146 before the intervention of the central bank, and the prices of dietary basic products beef and milk have risen by about 20 percent.
Before Putin annexed Crimea eight years ago, the exchange rate was often below 50 rubles a pound.
A Muscovite named Anton said: “No dollars, no rubles – nothing. Well, there are rubles, but I’m not interested. I don’t know what to do next. “I’m afraid we’re turning to North Korea or Iran right now.”
A designer named Andrei told the BBC that rising interest rates mean he can’t pay off his mortgage. He said: “If I could leave Russia right now, I would. But I can’t quit my job.
“I plan to find new clients abroad as soon as possible and move out of Russia with the money I saved for the first installment. I’m scared here – people have been arrested for speaking out against the “party line”. I feel ashamed and did not even vote for the government.
Travel agents also failed to hide their concerns.
“Europe is closed,” a desperate agent told a Russian tourist. ‘No chance. Impossible. ‘
There may be hopes of traveling to Turkey, Bali and Thailand, but popular European destinations – firmly popular with Russians – have been blocked for the foreseeable future.
European airspace has been cut off for Aeroflot and other airlines, and many Russian airlines will be forced to return Boeing leased aircraft under sanctions, leaving them in difficulty in serving Russian destinations.
If Western sanctions were mild before, few in Moscow believe so now, even as Russia’s state media continues to shape and guide the narrative.
“I’m fed up with all the poisonous lies on Putin’s propaganda television,” said 24-year-old Polina, an event organizer also in line for ATMs.
“No one of my generation is swallowing the bile that all Ukrainians are Nazis. This is nonsense and we all know it.
“Everyone in Ukraine – like here – wants a life without state tyranny, where we can live, breathe and prosper.
“Our Kremlin leaders are a thing of the past. Putin can create hypersonic weapons, but most rural houses have outdoor toilets.
“A lot of ordinary people are struggling to cope.”
73-year-old Lyubov refused to wait in line.
“I do not want to return to life as it was with Brezhnev,” she said. We left that behind – or so I thought.
She was born in Kharkiv, Ukraine’s largest city, just 25 miles from the Russian border, but which has been hit by rocket attacks from Russia over the past 48 hours.
“I fear for my grandchildren like never before,” she admitted. “Criticizes this criminal war?” You can, but you will be ready for betrayal.
This undated photo shows women queuing up in a Soviet store that looks completely naked around the late 1980s. Several Russians complain that the economic consequences of the invasion of Ukraine have thrown them “back into the USSR”
Russian President Vladimir Putin has received international criticism for his decision to pursue a persistent invasion of Ukraine. Many of its own citizens are now speaking out against its decisions
If Western sanctions were mild before, few in Moscow believe it now, even as Russian state media continue to shape and direct the narrative.
“It’s sobering.” I go back to the queues I remember from my childhood. The authorities are trying to blame the West, but we know who is responsible for our misery.
This is our own president.
However, some disagree and remain loyal to Putin, convinced that Ukraine is full of Nazis and a threat to Russia’s security that requires forced demilitarization.
Food prices are expected to soar in the coming weeks, with retailers already warning of higher costs on the horizon as a result of the terrible exchange rate and the proximity of food factories to Ukraine’s military zone in the Kursk and Belgorod regions.
Andrey Zudov from the Slata and HlebSol retail chains said: “There are enough stocks of fruits and vegetables for this week.
“But we have received reports from suppliers that they cannot ship goods that have arrived in Black Sea ports due to the uncertainty of the situation and the strong fluctuations in the currency.”
This means that Russian citizens are facing a “shortage of imported fruits – citrus fruits, pears, grapes and bananas” in the very near future.
Rusnak walks in front of a digital billboard showing the exchange rates of the Russian ruble against the euro and the US dollar in front of an exchange office in Moscow as the price slides
This photo shows a view of a school destroyed by explosions near the center of Kharkiv
Kharkiv, Ukraine’s second-largest city, has been heavily bombed by indiscriminate Russian artillery and may have been hit by so-called “cluster” munitions, causing “dozens” of casualties.
China can be considered a Russian ally, but many of its suppliers have begun to demand 100% prepayment at the point of purchase for all imports to Russia.
Some supplies of alcohol were also stopped.
Alexander Martinov, founder of the Rovesnik bar in Moscow, said: “Suppliers have already sent out notices that the prices of imported goods will rise.
“For example, we bought sweet potatoes in Canada and imported cheese.
“And now prices are rising by 30-40 percent and this is clearly not the final increase.”
Westerners living in Russia face problems using their debit or credit cards linked to foreign banks.
The Russian wife of an American citizen said: “Bank cards do not work and we are wondering how we can withdraw cash. My husband managed to withdraw some cash yesterday, but today he went to the store and returned empty-handed.
Despite the devastating financial damage, the smiling Vladimir Putin yesterday spoke of the Western “empire of lies” and banned Russians from sending their money abroad since midnight.