Russia’s top banking official admitted this week that sanctions have pushed the economy to the brink as the country tries to maintain some semblance of stability.
Bank of Russia chief Elvira Nabiullina presented the bank’s annual report for 2021, detailing the country’s economic recovery from the impact of the pandemic. She went on to describe the devastating effect western sanctions have had on the country following its invasion of Ukraine.
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"In the first place, the sanctions imposed against Russia affected the situation in the financial sector, spurred the demand for foreign currencies and caused fire sales of financial assets, a cash outflow from banks and surging demand for goods," Nabiullina said in prepared comments. "Furthermore, risks to financial stability increased."