The head of the Russian central bank said in the latest interview which Western sanctions against Russia are the toughest.
Elvira Nabiullina said in an interview with the business portal RBC that the most painful consequence of Western sanctions against Russia is the restriction of international payments. Another problem is the freezing of private investors’ assets.
The West imposed the first sanctions on banking transactions shortly after the invasion of Ukraine began in February 2022.
Restriction on international payments
– International payments have become a problem and still are, even though we are trying to solve it. Of course, a very painful topic is also the blocking and freezing of assets of private individuals, millions of people who were not subject to sanctions but whose assets were frozen, the head of the Bank of Russia said. – This is a difficult problem that we are trying to solve together with the government in different ways, she said.
In its assessment it cannot be said that the Russian Federation “managed to respond to all challenges” and solve all problems.
– However, I am quite positive about the development of the financial sector, its sustainable development, the fact that it will remain technological and innovative and will be able to meet the needs of both people and businesses, Nabiullina said.
EU sanctions against Russia
In December, the European Union accepted the twelfth package of sanctions against Russia. The new package includes a ban on the direct or indirect import, purchase or transfer of diamonds from Russia. This ban applies to diamonds originating in Russia, diamonds exported from that country, diamonds transiting through Russia and Russian diamonds processed in third countries.
Furthermore, Brussels decided to introduce an embargo on the import of Russian LPG, allowing a transition period of twelve months. Moreover, it was indicated that the EU would strengthen the ban on the export of sensitive technologies and goods to the Russian Federation and expand the list of dual-use items.
It is believed that one of the sources of Moscow’s financing of the war in Ukraine is the lucrative diamond trade, which generates an annual turnover of four to five billion dollars.
Record military expenditure
At the end of November, Russian President Vladimir Putin signed the 2024 budget of the Russian Federation, significantly increasing federal spending. A record amount was allocated to defense.
According to analysts at the Institute for War Studies, the document’s report shows that Russian spending next year will reach $412.5 billion and the budget deficit will reach $9.5 billion.
The Russian government plans to spend about $157.5 billion on defense and law enforcement, which amounts to 39 percent. all federal government expenditures.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
