Western countries have introduced a package of sweeping economic sanctions to punish Vladimir Putin for his invasion of Ukraine. Many of these measures have targeted Russia's financial sector and its major banks, cutting them off from capital markets in the West. Others have focused on individuals close to the Kremlin, as well as major industries in the energy and technology sectors.

The results of this unprecedented action have caused economic turmoil in Russia, causing panic among ordinary people.

An Express.co.uk source in Russia said there were queues at shops, as retailers had to keep changing prices due to the collapsing ruble.

They added: "My friend said she couldn’t renew her work contract today, money she saved is now worth nothing and everyone is panicking."

The new sanctions have caused the national currency to plummet in value.

The ruble initially slumped by 30 percent on Monday before easing back to stand 20 percent down.

The ruble's crash forced the Russian Bank to double interest rates to 20 percent.

The collapsing value of the ruble erodes the currency's buying power and could wipe out the savings of ordinary Russians.

Reports were also emerging that banks were starting to run out of money, as people desperately tried to withdraw cash.

William Legate posted on Twitter: "Russian banks are starting to run out of money."

He added a photo of an ATM which displayed the message: "Sorry, no money in such currency.”

Sberbank, Russia's largest bank and where most Russians have an account, said it had experienced “significant outflows of deposits in a very short time.”

Chris Weafer, chief executive at consultancy firm Micro-Advisory and based in Moscow, told the BBC: "This set of sanctions is hitting ordinary Russians to an extent that previous sanctions have not and people are now becoming aware of that.

"People are a lot more fearful.

"There is already talk about some companies having to either go on reduced working hours, or even suspend production because they're not able to access maybe key parts from the West due to sanctions or due to trade limitations, so there's a great deal of concern on the street."

The scenes brought back memories of the economic turmoil at the beginning of the 1990s, when Boris Yeltsin introduced his market economic reforms.

These initially led to spiralling inflation that destroyed people's savings.

In the first year of the reforms, retail prices in Russia increased by a staggering 2,520 percent.

Russia was again rocked by economic woes in 1998, when it had to devalue its currency and default on its debt in the wake of the Asian financial crisis.

Many private banks went bankrupt and again people lost their savings.

Dmitry Peskov, the Kremlin spokesman, tried to reassure the public that things would calm down and get better.

He said: "These are heavy sanctions, they're problematic, but Russia has the necessary potential to compensate the damage from these sanctions."

I don't know how true this information is, considering that there is no source....... irrespective of that,none of the two parties involved in this senseless war will come out unhurt,Russia may even come out the worst.

Na WA o

All this won't do any major harm to Russia, as they are not import dependant economy like Nigeria, they run a fortress economy

Russia has her own technology, they make their own cars, smart phones, Airplanes , grow their own food, have their own trade partners like Syria, Iran, Pakistan, China , NorthKorea

They claim Russia currency traded against dollars and euro drop 30% pip , Putin then called their bluff by banning sales of Euro and USD or transfer of their currency abroad

US banned Facebook, Google Services in China, China developed their own OS through Huawei, and also WeChat, TikTok



.

Why is the gas tap to Europe from Russia still running?

Why can you turn it off if you have the mind so that millions will die during winter in Europe. Hypocrisy!!!

toobusy:
I don't know how true this information is, considering that there is no source....... irrespective of that,none of the two parties involved in this senseless war will come out unhurt,Russia may even come out the worst.

It seems so; Russia could lose more

Putin

Let's not rush to a conclusion

EdoBoy90:
Why is the gas tap to Europe from Russia still running?

Why can you turn it off if you have the mind so that millions will die during winter in Europe. Hypocrisy!!!

If Russia tries that… that is russia major source of money

Russia will come out stronger

Dreamhighnow:


If Russia tries that… that is russia major source of money

So, both are benefiting? Now, I get it.

Putin is a Devil incarnate is End is near I see Americans capturing him before End of May and Likely to be Executed on National Tv just like sadam Hussein

Dreamhighnow:


If Russia tries that… that is russia major source of money

.

See, millions will die in Europe during Winter. It is not only Russia that will feet the hit. There are other markets to sell gas.

Qatar has said that they can't replaced Russian gas supply to Europe. No country can do such.

EdoBoy90:
Why is the gas tap to Europe from Russia still running?

Why can you turn it off if you have the mind so that millions will die during winter in Europe. Hypocrisy!!!

That is Russia's biggest income, u want Putin's govt to collapse completely?

When I read comments of some people supporting Putin and Russia on Nairaland, I shake my head in disbelief.

Irony is a typical situation where some lowlifes in Nigeria hate everything about the US, make posts about how the US is the cause of their woes, and they support Russia against the US, and the following day they scurry to the US embassy to beg to be allowed to go to the US.

Many of you here hating the US have tried severally to get your sorry asses to the US and failed.
Why not go to Russia?
Useless Hypocrites.

Putin Nuclear weapons go kill una soon.

Na better thunder go strike Putin. If not because of that idiot, I for dey Ukraine dey enjoy myself...now am stuck in this useless corntree.

EdoBoy90:
Why is the gas tap to Europe from Russia still running?

Why can you turn it off if you have the mind so that millions will die during winter in Europe. Hypocrisy!!!

Because Russia economy depends on purchasing powers of capitalist countries.

CharleyBright:
When I read comments of some people supporting Putin and Russia on Nairaland, I shake my head in disbelief.

Irony is a typical situation where some lowlifes in Nigeria hate everything about the US, make posts about how the US is the cause of their woes, and they support Russia against the US, and the following day they scurry to the US embassy to beg to be allowed to go to the US.

Many of you here hating the US have tried severally to get your sorry asses to the US and failed.
Why not go to Russia?
Useless Hypocrites.

Putin Nuclear weapons go kill una soon.

It seems those Putin supporters belong to a paid propaganda group probably being run by the government. You know they must do as instructed. Can't you see that they don't fail to write comments on every war thread on front page. Even that Fernandez guy defending Ukraine seems being paid. Every war thread has his comments I think.

As for Putin, this is time for what they call GOD to show us that he's truly against injustice.

Dreamhighnow:


If Russia tries that… that is russia major source of money

Not true. Check out their volume of trade with China.
Europe will lose out as well, if the Russians cut off gas supplies