The Russian economy is taking "serious blows," the Kremlin acknowledged Wednesday, as the country's growing isolation piles further pressure on its tottering financial system.

Apple (AAPL), ExxonMobil (XOM), Ford (F), Boeing (BA) and Airbus (EADSF) joined a list of companies shutting down or suspending their operations in Russia in response to its invasion of Ukraine and ensuing Western sanctions, and the European arm of Russia's biggest bank collapsed following a run on its deposits. The ruble weakened again to trade at 112 to the US dollar.

"Russia's economy is experiencing serious blows," Kremlin spokesman Dmitry Peskov said in a call with foreign journalists. "But there is a certain margin of safety, there is potential, there are some plans, work is underway."

Peskov was responding to a question about US President Joe Biden's remark in his State of the Union speech that the Russian economy had been left "reeling" from sanctions.

Sberbank (SBRCY), Russia's biggest lender, said Wednesday it was quitting Europe, with the exception of Switzerland, after banking regulators in Austria forced the closure of its Vienna-based EU subsidiary. The European Central Bank had warned earlier this week that Sberbank Europe was likely to fail after depositors rushed to withdraw their money following the imposition of Western sanctions on much of Russia's financial system.

Sberbank said its subsidiaries had faced "an exceptional outflow of funds and a number of safety concerns regarding its employees and offices," the group said in a statement, adding it had been prevented from bailing them out by an order from the Russian central bank.

The banking sanctions are part of a broader package of measures the West has taken, unprecedented in scale against an economy of Russia's importance, with the aim of cutting off funding for Russian President Vladimir Putin's war effort. France estimates that $1 trillion worth of Russian assets have been frozen, including about half of the Russian government's war chest of reserves.

Moscow has responded with a series of emergency measures aimed at preventing financial meltdown, halting the flow of cash out of the country and preserving its foreign currency reserves. The central bank more than doubled interest rates to 20%, and banned Russian brokers from selling securities held by foreigners.

https://edition.cnn.com/2022/03/02/business/russia-markets-economy-sberbank/index.html

Iamgrey5:
No way

Russia economy is the currently the best in the world

No country can rival it

Am I right my alternative reality junkys?

Wisesaying001:

Unfortunately Russia is not in the top 10
https://www.populationu.com/gen/countries-by-gdp

Iamgrey5:
Not according to alternative reality bro

In our alternative universe, Putin the saint is fighting for his freedom by invading a much smaller country that has no nuclear weapon


We also strongly believe Russia has the highest gpd only second to America when Trump was the president, but Russia currently holds that record..



Stop following common sense and follow the world of alternative universe where our imagination is reality.

Iamgrey5:
Not according to alternative reality bro

In our alternative universe, Putin the saint is fighting for his freedom by invading a much smaller country that has no nuclear weapon


We also strongly believe Russia has the highest gpd only second to America when Trump was the president, but Russia currently holds that record..



Stop following common sense and follow the world of alternative universe where our imagination is reality.

Nonpartisan1:
Essentially, the West took down Russian finances in one day. The situation is likely to become worse than in 1998 because now there is no positive end. All Russia's capital markets appear to be wiped out & they are unlikely to return with anything less than profound reforms.

The Moscow stock markets have closed & Russian stocks are no longer traded in New York, presumably all 31 soon gone in London. The three big foreign banks in Moscow are likely to withdraw: Raiffeisen, Societe General & Unicredit: No profitable business in sight.

But Nairaland arm- chair supporters feel otherwise yeye people.

Wait till the sanctions start weighing in fully.

Putin the coward has lost everything in this careless war he has chosen.

Help2020:

Who sanctioned US when they killed Gaddafi?

boyfrank:
Where are all the Putin fan boys. Mangyalt, Bkayy and the rest. World power is not by weapons and aggression only.

CharleyBright:
Them never see something.
With all manner of sanctions flying from all angles, Russian economy will almost be stifled and the citizens will hit the streets of Russia in protests and later an uprising that will either turn Putin against his people with iron fists OR make the Russian citizens stage an uprising against his govt to kick him out.
When an economy goes sliding, the masses are badly affected, and when the masses are affected, lawlessness is inevitable.
Let's watch as things unfolds.

NGpatriot:



I actually see Russians kicking him out and the ICC putting him on trial for war crimes..

helinues:


The truth is only Russians can stop Putin invasion in Ukraine.

The money Putin was relying on to sustain their economy, most of them have been frozen in foreign account which Putin didn't see coming.

Like I said above, they are yet to feel a thing