The “economic blitzkrieg” launched by the West through sanctions against Russia has “failed”, while the same sanctions in European countries are already causing “a decline in living standards”. So Vladimir Putin poured water on the fire a few hours after being alerted by the governor of Central Bank of Russia, according to which the institute can “roughly decide for itself reserves composed of gold, yuan and other assets not exposed to the risks associated with sanctions, “but” the period for which the economy can live on stocks limited“. The reviews of Elvira Nabiullina they were reported directly to the Duma and reported by the state news agency Tass.
The central banker in Moscow, who a week ago had still found sufficient reserves and the economy for a restart, therefore conceded that the sanctions imposed after the conflict were in force Ukraine “They hit the financial market first, although now they will have one greater impact on the economy“Russian. The governor stressed that the central bank “will not try lower inflation at any price, because this would limit the economy’s adjustment “to the new situation marked by sanctions”.
The country must face itself instead”structural changes its economy” and the business model for dealing with sanctions. Russian companies have to adapt because “the main problems will affect them Import Restrictions and to logistics of foreign trade”. In addition, “Russian manufacturers have to look new partners“, new logistics or the switch to the production of products from previous generations”, but “all of this will take time”.
The central bank which believes the banking system is sound and can withstand even “heavy hits” from Western sanctions will gradually relax and simplify capital controls exchange rules for exporters. That digital ruble, for transactions between banks, which five credit institutions have already joined. Above all, however, the institute plans legal action against the sanctions imposed by the western community after the war in Ukraine.
However, according to Putin, the sanctions imposed by the West against Russia after Ukraine’s military aggression are “an own goal‘: The President argues that ‘inflation and retail prices are stabilising’, although ‘the main negative factor for the economy was evidently the pressure from sanctions’. However, according to the reasoning, the aim of the Western sanctions was to “quickly affect the financial and economic situation of our country, to provoke it panic in the markets, the collapse of the banking system, a largescale shortage of goods in stores. But already now we can say with certainty that such a policy towards Russia has failed.” However, for Putin, Moscow needs to “speed up” the transition to the ruble and currencies of other countries, in “foreign trade” and “maximum assistance to entrepreneurs who got into trouble because of sanctions”.